Credit Card Companies Tightening Up

5thelement · Jun 25th, 2008, 03:07 PM

I posted a little while ago about a credit reduction by Amex. Looks like it's happening all over the place now, as time get tougher... Understanding that they are trying to protect themselves, but I wonder how much of what they are doing will tarnish their brand/reputation and turn people off that card for a long time? Or accelerate the downspiral where the account goes bad, as mentioned in the article?

http://finance.yahoo.com/banking-bud...o-Check-Credit

barcreperie · Jun 25th, 2008, 04:15 PM

Amex seems to be leading the pack in this push to limit exposure to possible delinquencies. Unfortunately it seems they're hitting on the bigger and better clients. When this has all washed over, Amex may find it has bitten the hands that feed it one too many times. With it's reputation already suspect, this may be the final blow for them as they alienate even more of their customers. I've never liked Amex and its arrogant ways, so am glad to see Amex customers jumping over to other credit card providers.

pursewatch · Jun 25th, 2008, 05:13 PM

That's crazy, AmEx cut that person's credit line down to $4,300 from $36,0000.

socalgem · Jun 25th, 2008, 07:51 PM

Credit card companies have been getting stricter for awhile now. Everything is going to be harder to get than it used to be.

Zophie · Jun 26th, 2008, 01:15 AM

Quote:

Originally Posted by pursewatch

That's crazy, AmEx cut that person's credit line down to $4,300 from $36,0000.

what the hell? I have friend who uses her Amex for everything, and a lot is business related. They'd probably lose her as a customer ASAP if they did that to her.

twiggers · Jun 26th, 2008, 07:10 AM

They've been doing this to my husband. They tend to only do this to people who carry balances and don't make huge payments every month. We paid off my hubby's card yesterday and he got his balance reinstated!

RealDealGirl · Jun 26th, 2008, 08:23 AM

Punishing carbmembers even before they do anything wrong just out of fear that they might become delinquent? That's not smart practice.

As for all credit card issuers tightening their standards...I don't have a problem with that, our society relies too much on credit anyway.

Jun 25th, 2008, 05:13 PM	#3
pursewatch I Hate Counterfeits! Joined: Sep 2007 Location: Urban Jungle Posts: 909	That's crazy, AmEx cut that person's credit line down to $4,300 from $36,0000. __________________ I my hubby.

Jun 25th, 2008, 07:51 PM	#4
socalgem Because I can... Joined: Apr 2007 Location: California Posts: 4,388	Credit card companies have been getting stricter for awhile now. Everything is going to be harder to get than it used to be. __________________ Life is too short to drink cheap champagne.

Jun 26th, 2008, 07:10 AM	#6
twiggers Earning my PhD Joined: May 2006 Location: The Library Posts: 19,868	They've been doing this to my husband. They tend to only do this to people who carry balances and don't make huge payments every month. We paid off my hubby's card yesterday and he got his balance reinstated! __________________ Check out my new blog.....and see how I eliminated $50,000 in credit card debt in just 7 months.... COME JOIN THE COOLEST CLUB AROUND...THE CURBING CONSUMERISM CLUB

Jun 25th, 2008, 03:07 PM	#1
5thelement Member Joined: Mar 2008 Posts: 257	I posted a little while ago about a credit reduction by Amex. Looks like it's happening all over the place now, as time get tougher... Understanding that they are trying to protect themselves, but I wonder how much of what they are doing will tarnish their brand/reputation and turn people off that card for a long time? Or accelerate the downspiral where the account goes bad, as mentioned in the article? http://finance.yahoo.com/banking-bud...o-Check-Credit

Jun 25th, 2008, 04:15 PM	#2
barcreperie Member Joined: Aug 2006 Posts: 637	Amex seems to be leading the pack in this push to limit exposure to possible delinquencies. Unfortunately it seems they're hitting on the bigger and better clients. When this has all washed over, Amex may find it has bitten the hands that feed it one too many times. With it's reputation already suspect, this may be the final blow for them as they alienate even more of their customers. I've never liked Amex and its arrogant ways, so am glad to see Amex customers jumping over to other credit card providers.

Jun 26th, 2008, 08:23 AM	#7
RealDealGirl Berries 'n cream Joined: May 2007 Location: Connecticut Posts: 536	Punishing carbmembers even before they do anything wrong just out of fear that they might become delinquent? That's not smart practice. As for all credit card issuers tightening their standards...I don't have a problem with that, our society relies too much on credit anyway.