AmEx rumors

American Express forum. Talk about AmEx credit cards like Blue, Gold, Platinum, Centurion, and more.
14 posts
WildBill
Platinum Member
Platinum Member
 
Posts: 51
Joined: Wed May 29, 2013 2:52 pm
Location: USA

AmEx rumors

Postby WildBill » Tue Aug 27, 2013 11:41 pm

After reading about all these negative experiences (I.e., reduced credit limits and closing of accounts) I've decided to test it myself. Think of me as your honest test subject. I usually PIF, however I am not wealthy and have 4 kids. My reason for using credit cards besides building credit is to be able get through autumn without having to scrape the barrel. So in the fall I usually charge up back to school clothes, equipment, supplies, etc. also have 3 kids birthdays in October, so Autumn is a financial heavyweight on me. Basically I carry a balance fall through winter. I always make at least triple the minimum monthly payment, but will still be carrying a monthly balance not to exceed 30% of overall CL. Judging from what I've read by people complaining, If they were honest then my situation is similar. So lets see what happens and how Amex treats me for carrying a balance. My cards are BCE and Blue Sky. All cards will be paid in full this winter but I'm curious to see if Amex will react negatively for carrying a balance for a couple months. I want to see how my honest experience stands up against all the negative posts. I want to either prove or disprove the rumor that its bad to carry a balance on an Amex credit card once and for all. My CR is clean, no baddies, payments always on time and above minimum. Scores all above 700. My best friend works in the mortgage industry and my sister works for a bank and both told me neither one cares if a credit card is closed by the creditor as long as there are no late payments and status is "paid as agreed". So, I really dont give a damn if Amex closes or reduces me. Dont get me wrong, I dont want that but it wont hurt me because Im not shopping for credit anytime soon. Either way, when I PIF them all this winter my score will skyrocket again so it doesnt really matter. So lets see how this rides out for those of you interested. I will update periodically.


brianjb
Green Member
Green Member
 
Posts: 7
Joined: Mon Aug 19, 2013 12:40 pm
Location: Columbus, Oh

Postby brianjb » Wed Aug 28, 2013 5:57 am

I thank you for your experiment. I don't think you will have a problem. Just my $.02. I have heard that AMEX did those types of things, but I think those were a few years ago when there was more of a financial crisis.

I can't wait to see how this works out.

WildBill
Platinum Member
Platinum Member
 
Posts: 51
Joined: Wed May 29, 2013 2:52 pm
Location: USA

Postby WildBill » Fri Aug 30, 2013 7:58 pm

brianjb wrote:I thank you for your experiment. I don't think you will have a problem. Just my $.02. I have heard that AMEX did those types of things, but I think those were a few years ago when there was more of a financial crisis.

I can't wait to see how this works out.


I know this is early, but since my statements posted yesterday I just wanted to say, so far so good. We have a ways to go so I also want to clarify, this isn't an anti-Amex post. This is a simple experiment to determine if certain rumors are true or not. I am 100% honest and so far I can say nothing but good things about Amex customer service. Each time ive had to speak to them it was unscripted live human conversation. So, at each statement I will continue to post and update and as I promised overall utilization will not exceed 30% so that those of you interested and in a similar situation can get an honest report.

ChrisR2020
Green Member
Green Member
 
Posts: 11
Joined: Fri Nov 02, 2012 12:28 pm
Location: Charlotte/NC

of course they like you when you carry a balance...

Postby ChrisR2020 » Fri Aug 30, 2013 9:16 pm

That's how they make money. BCP interest rates are higher than average.
I actually received a letter from amex recently encouraging me to carry a balance, which I have done twice in 2 years.
[font=Century Gothic][size=60][/size][/font]Chase freedom visa 12k / American Express BCP 25k / Capital One Quicksilver visa sig13k / barclaycard rewards mc 8k / Citi simplicity visa 12k / Capital One cash rewards mc 5k / BB&T visa Sig12k / Citi Thank you preferred mc 10k / BOFA visa 12k / Citi Dividend visa 6k

takeshi
Centurion Member
Centurion Member
 
Posts: 1733
Joined: Wed Jun 05, 2013 3:12 pm
Location: US

Postby takeshi » Sat Aug 31, 2013 9:52 am

Always be careful when trying to run an analysis based on forum posts no matter what the topic. You're relying on an unusual sample of card users and discussion forums by their very nature provide a skewed perception of reality. I've carried just over 30% on two AmEx cards (each just over 30%) with no AA. People like to parrot "AmEx doesn't like carried balances" but you also have to be careful assuming that blindly parroted statements like that can be taken at face value.

WildBill wrote:This is a simple experiment to determine if certain rumors are true or not.

It's not just a black-and-white or true or false matter. Situations vary. AmEx does carry out AA but people quite often tend to assume that only one variable is at play (e.g. carrying balances) when there are actually a number of factors at play. A lot of people also don't have a good grasp of causal versus coincidental and easily confuse the two.

One data point never defines a trend so a person carrying a balance on am AmEx with no AA really doesn't prove or disprove anything other than with regard to that person's specific situation.

flan
Centurion Member
Centurion Member
 
Posts: 387
Joined: Tue Apr 09, 2013 10:16 pm
Location: chicago

Postby flan » Sat Aug 31, 2013 8:44 pm

takeshi wrote:Always be careful when trying to run an analysis based on forum posts no matter what the topic. You're relying on an unusual sample of card users and discussion forums by their very nature provide a skewed perception of reality. I've carried just over 30% on two AmEx cards (each just over 30%) with no AA. People like to parrot "AmEx doesn't like carried balances"


Amex loves carried balances; interest income is a huge money maker for them. What they don't like is balances that they won't get paid back. That's when they start taking adverse action, when they see things that worry them. Run up a big balance, and then pay the minimum for months, or run up a bunch of balances.

ZUNE
Green Member
Green Member
 
Posts: 4
Joined: Sun May 05, 2013 3:52 pm
Location: NEW YORK

Postby ZUNE » Sun Sep 01, 2013 4:37 am

Hi I'm new to amex with an credit history of 11 months I applied to amex platnum with a score of 740 now when I look at my transunion fico score it's 640 because of high utlation of 70 percent I'm nervous amex will shut me down any advice I also applied for gold same day I thought charge cards don't report balance

hematino
Centurion Member
Centurion Member
 
Posts: 339
Joined: Fri May 11, 2012 4:08 pm
Location: Atlantic City, NJ

Postby hematino » Sun Sep 01, 2013 6:50 pm

When I first got my Blue Cash Preferred in February of 2012, it had a 0% APR promo rate for the first 12 months. I took full advantage and carried a balance which was around 50% of my total available credit for the second half of that 0% year. Why not take advantage if it's interest free? Then right as the final statement approached which would put me back at the regular rate, I paid it in full and Amex never saw a cent of interest. In my own experience they never did anything against me for it, and even accepted a CLI request.
Now she's eyeless.
The snakes she held once
Eat up her hands.

WildBill
Platinum Member
Platinum Member
 
Posts: 51
Joined: Wed May 29, 2013 2:52 pm
Location: USA

Postby WildBill » Mon Sep 02, 2013 12:22 am

takeshi wrote:Always be careful when trying to run an analysis based on forum posts no matter what the topic. You're relying on an unusual sample of card users and discussion forums by their very nature provide a skewed perception of reality. I've carried just over 30% on two AmEx cards (each just over 30%) with no AA. People like to parrot "AmEx doesn't like carried balances" but you also have to be careful assuming that blindly parroted statements like that can be taken at face value.


It's not just a black-and-white or true or false matter. Situations vary. AmEx does carry out AA but people quite often tend to assume that only one variable is at play (e.g. carrying balances) when there are actually a number of factors at play. A lot of people also don't have a good grasp of causal versus coincidental and easily confuse the two.

One data point never defines a trend so a person carrying a balance on am AmEx with no AA really doesn't prove or disprove anything other than with regard to that person's specific situation.


You are absolutely correct. There are many variables, which is why I stated my CS's, situation, and utilization. My experiment and goal here was to determine if those of us who use credit wisely, but carry a balance sometimes have anything to fear from Amex. I am intelligent enough to know that a lot of negative posts come from people who have collections added to thier CR's, maxed our CC's or late payments. The whole purpose of this is to show those who pay on time, keep a lower CL utilization, but choose to carry a balance with Amex CC's over time. It's quite obvious that people who default on loans, pay late on other CC's, or have thier CS's drop so much that Amex will AA them. That's not the point here. There was a lot of Internet chat going around that Amex cancels cards or drops CL's on customers who have perfect clean histories simply because they are carrying a balance and not PIF'ing. That my friend, is what I'm analyzing.

WildBill
Platinum Member
Platinum Member
 
Posts: 51
Joined: Wed May 29, 2013 2:52 pm
Location: USA

Postby WildBill » Sat Oct 26, 2013 1:47 am

Amex has been great to me. As I said before, my payments are at least triple the minimum but I'm at about 30% utilization right now. I apologize for the late update but here is what happened... I subscribe to a monthly credit monitoring service. Last month upon logging in I suddenly had a collection on my report. I was about to scream at the monitoring company about why I did not recieve an alert until I saw the date reported was 2009. I have no idea why this suddenly popped up on my CR because I am OCD about paying my bills on time, but there it is and I am in the process of disputing it. With that said , this whole experiment is tainted. However, one positive is that not only has Amex been good to me under the ideal conditions, but even with this sudden collection they are still with me and friendly as ever. I have to say though, with a collection dispute I would not blame Amex at all for seeking caution and lowering my CL or taking other actions. I will follow up once I get this resolved, but to update everyone I want to say American Express has been awesome.



Return to “American Express”

Who is online

Users browsing this forum: No registered users and 2 guests