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Amex canceled my 1,000 card


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Sorry to hear about that OP. Amex really doesn't know what they are doing. I have only ever used one of my seven cards with Amex and that was for a credit secure membership. They just approved me for my eighth card. I hope they start cancelling some of my cards soon so I can get more. :rolleyes: If it's any consolation, remember that when/if you apply for another card it will be backdated to your original member since date. When my cards are cancelled I will just wait a month or two and apply for the Delta card, convert it to Blue, rinse and repeat all over again.

Which card was it that was cancelled?

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I'm going to pretend to be your friendly Amex FR team member. Let's take a look at what you posted here so far.

 

You hardly ever use our AMEX card....we make no money this way.

If you did use it, it was mostly for your $10 monthly gym membership..........we make very little money here.

You always PIF, never carry a balance.....again, we make no money this way.

 

So that would be about $15 made off of your transaction fees.

 

Now let me ask you this, if you had a client for an entire year, who made you $15 the entire year, would you go out of your way to keep that client as a customer? Would you keep them if you had 20 others in line waiting for his Credit Line? Probably not.

 

Maybe if more people actually thought about the other side of the fence, and how much money you are making them, you wouldn't be so surpised to see a CLD or an account closure.

 

So IMO, you hardly using your account was the MAIN reason. The rest of the excuses can just be made up to be able to put something in the letter for you.

 

Good analysis. Even if the OP is a responsible very credit-worthy customer, and I'm sure they are, he/she just isn't making Amex any money. If I spend only $500/year on a card, I worth about as much to Amex in revenues as I am to the soda machine at the airport I pump a $1 coin in once a month.

 

A while back someone posted an investors presentation that Amex made recently. Their investor relations folks came right-out and said that they don't really value low-limit cardholders, because they can't generate enough spend to meet their revenue targets. Having a high Spending-per-cardholder rate is critically important to Amex's whole business model (and they brag about it in their annual reports), because its the big reason they can get merchants to pay them a much higher fee than they pay Visa. Amex' scardholders spend more than Visa's or Mastercard's do, and the merchants want those kind of people. Having a lot of cardholders who charge $500 a year dilutes that.

As long as my amex CLs are minute, I will never be a big amex spender. Visa and MC and Disc will get my business bec there is not enough wiggle room on my low-rent amex cards to use them.

I use the 10% rule

 

I have $100,000 I can only spend up to $10,000

 

You CLD me to $3,000...I can only spend up to $300

 

That will barely buy gas and groceries

 

How do I buy anything else and what do I use to pay for the DIRECT CREDIT CARD BILLING that should be charged to the credit card???

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"BEST OF BREED" would never close a $1,000 account

 

Yeah, if the op runs it up (bet they CLD real quick if someone tried to use too much of the CL) and defaults, that $1000 will push them over the edge. :rofl:

 

I don't think they like low spenders right now - it costs more to maintain than they earn back.

WHAT IS THE "REAL" COST OF AN OPEN ACCOUNT vs THE TOTAL LOSS OF 100% OF THE BUSINESS???

 

**CLOSED**

 

(be it $11.99 or $300 or $3,000 or $10,000 per month)

 

:rofl:

 

They make less than $2 on the $10 autopurchase. The cost of maintaining the infrastructure per acct is about that much - add in the cost of a support call (should he need it) and amex is underwater.

 

Someone recently said it cost approx $50 to process/approve a new application. No idea how accurate that is but when i worked as a CSR 15+ yrs ago the cost per call was $1/min to talk to a CSR and the goal was under 2:30 min per call.

 

I believe multiple transactions would be better for them, but a min of $50/mo is probably breakeven for most lenders.

On a very slow month I still spent over $1,000 with AMEX

 

More than 95% of purchases were on AMEX

 

The other 5% was on VISA or M/C

 

Don't tell me they didn't make money off me

 

AFTER THE MASSIVE CLD's THEY MADE $0.00

Exactly how I feel abt BOA this week. Sockdrawered, for the duration. Is this how they want to treat the folks who PAY their bills? :rofl:

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To the people saying from a "business point of view"....... If Amex wanted to make money off of me, they should've gave me a higher CL. 1,000 was pathetic when I had cards over 10,000 and back then I had no "Debt".

 

The bolded portion combined with the earlier post about making minimum payments and not answering the questions posed about total debt relative to reported income suggest that something has changed in the reported history, and that the change was NOT for the better.

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Sorry to hear about that OP. Amex really doesn't know what they are doing. I have only ever used one of my seven cards with Amex and that was for a credit secure membership. They just approved me for my eighth card. I hope they start cancelling some of my cards soon so I can get more. :lol: If it's any consolation, remember that when/if you apply for another card it will be backdated to your original member since date. When my cards are cancelled I will just wait a month or two and apply for the Delta card, convert it to Blue, rinse and repeat all over again.

Which card was it that was cancelled?

 

WTH :P

 

are you for real? what happens when they shut all of them down, rinse and repeat? and for what- increased AAOA? for what it gets you- i guess, but sounds abusive really.

 

hope there are not many others like you who push the envelope past what could be considered reasonable under most circumstances and potentially kill the perk for others by calling the wrong kind of attention to it. :lol:

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Erm ... It is AmEx who created the policy of backdating new accounts and it is AmEx who decided to issue 8 cards to drab. Unless every multiple-Amex-cardholder barrages Fair Isaac with their explanation why they applied for multiple cards - and probably 99.99% do not apply just to bump average account age - there is no way for FI or anyone else to draw any conclusion that the scoring formula is being gamed. Not to mention the overall effect is probably infinitesimal. FI have far more serious scoring manipulation (such as AUs) to worry about. And AmEx doesn't care or they would have changed their policy. And it's not like every AmEx cardholder can just imitate drab and apply for a bunch of new cards and expect approval ... :lol:

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Erm ... It is AmEx who created the policy of backdating new accounts and it is AmEx who decided to issue 8 cards to drab. Unless every multiple-Amex-cardholder barrages Fair Isaac with their explanation why they applied for multiple cards - and probably 99.99% do not apply just to bump average account age - there is no way for FI or anyone else to draw any conclusion that the scoring formula is being gamed. Not to mention the overall effect is probably infinitesimal. FI have far more serious scoring manipulation (such as AUs) to worry about. And AmEx doesn't care or they would have changed their policy. And it's not like every AmEx cardholder can just imitate drab and apply for a bunch of new cards and expect approval ... :)

i think Save was refering to amex backdating- many of us hope they don't end that policy as they have ended so many others but if there is too much abuse, you can bet they will kill it.

 

drab might wake up someday to all of his amex cards closed and a big fat DECLINED when he tries to reapply in the future.

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i think Save was refering to amex backdating- many of us hope they don't end that policy as they have ended so many others but if there is too much abuse, you can bet they will kill it.

My point was: how can anyone, including AmEx, possibly determine "abuse"? Is there a question on their application that asks "Are you applying for this card in order to increase average account age"? And how many people, other than drab, would go to the trouble of applying for additional cards - which they are not guaranteed they will be approved for - in order to get a potential Fico bump of a few points? One declined application and points would actually be lost. There is no way for any significant number of cardholders to successfully "abuse" this perk. It is an imaginary "problem".

 

As I said, AmEx has knowingly backdated new accounts for millions of cardholders for some time. There is no negative effect on them and they actually spotlight the "member since" imprint in their advertising. There is no reason or incentive for AmEx to change their policy unless/until the CRAs and Fair Isaac force them to, and they don't consider it worthy of concern or it would have been addressed long ago ...

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they can determine abuse the same way they did with AU's, with great difficulty and room for error. but i am not saying that it wouldn't be difficult to surmise abuse and even more challenging perhaps to accurately account for amex's reasons or incentives for doing, well-- anything right now. i don't think the issue of excessive apps is imaginary or even necessarily a problem unless due to overuse it becomes one, again like the AU not so "imaginary problem".

Edited by savetherobots
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Well with my Amex I know they look every month at EX with a AR and I have noticed that other banks are reporting more and more my recent payments and I have a Amazon.com store account that I used to buy a LCD tv with and it has no payments and no interest for 24 months...I know they see it on their AR and wonder how they view it. Since it reports like I am not paying on it and it does not read in deferment.

 

 

 

BANK OF AMERICA

 

Address:

POB 17054

WILMINGTON, DE 19884

(800) 421-2110

Account Number:

....

Address Identification Number: 0

Status:

Open/Never late.

Date Opened:

01/2008

Date of Status:

03/2009

Reported Since:

01/2008

Last Reported Date:

03/2009

Type:

Revolving

Terms:

N/A

Monthly Payment:

$0

Responsibility:

Individual

Credit Limit:

$20,000

High Balance:

$12,902

Recent Balance:

$0

Recent Payment:

$4,107

Balance History:

02/2009 $4,107

Limit High Balance History:

As of Feb 2009 your credit limit/high balance was $20,000

 

GEMB/AMAZON

 

Address:

PO BOX 981400

EL PASO, TX 79998

(866) 597-1513

Account Number:

....

 

Address Identification Number: 0

 

Status:

Open/Never late.

 

 

Date Opened:

10/2008

Date of Status:

02/2009

Reported Since:

10/2008

Last Reported Date:

02/2009

Type:

Revolving

Terms:

N/A

Monthly Payment:

$0

Responsibility:

Individual

Credit Limit:

$25,0000

High Balance:

$19,999

Recent Balance:

$19,999

Recent Payment:

$0

Limit High Balance History:

Between Oct 2008 and Jan 2009, your credit limit/high balance was $25,000

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1,000 Credit limit.

Never got an increase

Always paid in full each month..

No lates or anything.

Hardly used it.... I had an automatic $10 gym membership charged to it ever month which also got paid every month.

 

I did use it once recently for a $300 purchase. And again - I PAID THAT IN FULL. There is NEVER a balance on this card.

 

 

Letter says because of my debt to income ratio and because I have "severe delinquencies" which really makes no sense whatsoever to me because I at least pay the min payment on things... So I guess I'll be pulling a report soon to see what the hell that's all about.

 

Sorry to hear about the CLD OP!!

Who knows what they are up to these days, charge too much, you're a risk, don't charge enough, you're unprofitable. If it's any relief, it would have been hard to rack up any significant rewards with the $1000 CL given their two-tier rewards structure. As others here suggest, always have backup, and you may well be happier with another card.

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I called my local CU and they agreed to send me a 5k card without a new pull. They pulled on me in January. I sd I'd take it since it was hardfree. At least that makes up for half that 10k loss. I'm still peeved because the 15k BOA was my highest and now, if I don't count my THD merchant at 12k, I don't have a single card over 7k. :blink:

 

Well, I do have one, but it's sleuth so not showing.

 

Since higher CLs beget higher CLs, I'm still looking for more options.

Edited by macuser
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i think Save was refering to amex backdating- many of us hope they don't end that policy as they have ended so many others but if there is too much abuse, you can bet they will kill it.

My point was: how can anyone, including AmEx, possibly determine "abuse"? Is there a question on their application that asks "Are you applying for this card in order to increase average account age"? And how many people, other than drab, would go to the trouble of applying for additional cards - which they are not guaranteed they will be approved for - in order to get a potential Fico bump of a few points? One declined application and points would actually be lost. There is no way for any significant number of cardholders to successfully "abuse" this perk. It is an imaginary "problem".

 

As I said, AmEx has knowingly backdated new accounts for millions of cardholders for some time. There is no negative effect on them and they actually spotlight the "member since" imprint in their advertising. There is no reason or incentive for AmEx to change their policy unless/until the CRAs and Fair Isaac force them to, and they don't consider it worthy of concern or it would have been addressed long ago ...

 

Revike- i agree with this v. highly well conceived post 100% btw (and prolly worry too much) and acknowledge that i sometimes sweat the small stuff.

 

so too am i mesmerized by drab and his success as a multi pronged amex card holder extraordinaire, not to mention his nose bleedish scores. while these ot points may have easily been lost in my previous responses, i hope you can concur that nothing here is mutually exclusive from my previous replies (like a propensity to TJ) the good news is i eventually 'get it' and i stop.

 

OP - i am sorry, true as word, for what happened to you and may happen to me soon (they've got my Blue down to 2500 fr. 12.5k) but choose to believe you will be better off because of it. they can't stop you.

Edited by savetherobots
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