What is going on with American Express? I've just read about ten complaints similar to this one. Credit scores can fluctuate on a fairly regular basis and your score goes down when any company does a credit check, so they're contributing to this decline in your score. Your credit score will go up, despite this cancelled account, and you are definitely better off without AMEX. Count your blessings, I suppose.
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I've commented many times on American Express' recent cancellation of accounts or reductions of lines of credit. One thing I've noticed recurring, many of the complaints are related to Amex accounts opened at Costco. As a regular Costco shopper, I can attest to the pressure Costco exerts on new members to open Amex accounts. It may be likely that Amex predicts problems with many of these accounts and is being proactive in eliminating them.
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Scores do NOT go down when a company does a credit check, it is informational only. When there are multiple credit checks on an individual who is APPLYING for new credit, it can negatively impact the score. Your credit card companies are looking at your score pretty regularly, probably even monthly these days. If that kind of score hurt your credit score, it would already be at zero.
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You bring up a good point, Ghost. Is Amex one of the credit card companies that do profiling based on where their customers shop? I shop at Costco, have used my card at Costco but I did not open my Amex acct through them. Oh well, it doesn't matter. I've got my credit union card. It's best to only have one. You cant overspend that way.
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I also believe Amex is returning to its roots as an 'exclusive' credit card. In long ago days, when Amex did not offer revolving accounts (the balance always had to be paid off at the next statement), getting one required a very stable credit history and verifiable income. Some of my friends, whom I wouldn't feel comfortable lending lunch money to, now carry Platinum Amex cards. It is possible that Amex is weeding out such accounts.
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Our business still uses one of the typical Amex gold cards like that. What you charge, you pay back at the end of the month. It is in fact a charge card, not a credit card by definition (I think).
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Exactly right, Slim. Unless you have one of Amex's 'Open' accounts. The 'Open' variety is a revolving account (credit card). The regular Green or Gold accounts are 'charge cards'. You bring up a very good point.
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I thought on another post I read that they are actually capping the amount you can spend per month (basically giving you a credit limit) on some the gold card accounts. Maybe I read it wrong? Anyway, thats where my card first started...as a gold card. I didn't want to pay the fee because I really didn't see any benefit from the card. Rather than lose a "loyal" customer (or so they said) they converted me to the clear card which has no fee. And the rest is history. LOL I don't have either card anymore. I'm at peace with it.
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I too remember when having an AmEx card was not just offered to anyone. No reflection on the OP. One had to provide proof of his income and credit references. Also, the balance was to be paid in full when the statement was rendered. If not, his credit card was put on hold. No questions period. On hold and no future charges allowed. Perhaps they are attempting to go back to their roots Doc J, but I feel they brought this upon themselves and the OP is experiencing the realization of what they created even though he was a good customer who signed up for what was offered.
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Right Doc and they say they have no limit, but of course, there is a trip wire somewhere up there.
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Slim - Absolutely! One trip wire I have heard about, but not verified, that Amex will now yank a card if the holder utilizes a cash advance on their charge card version. Using a cash advance implies cash flow problems.
Nohandle - You are right. Despite the dark clouds on America's financial horizon several months ago, Amex (and others) whistled as they walked past the graveyard. They kept issuing cards and lines of credit, hoping life would go on as before. The party is over and folks, like this OP, are paying the price.
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That does make sense as to how they would interpret that. Besides, the green and gold were not in spirit for cash loans. I'm surprised they even allowed advances on them.
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Many many years ago when I was a lad, you were expected to pay the balance due EVERY month...
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My first CC was a 'Standard Oil' (Amoco, now BP) card with a $125 line of credit (about 300 gallons of gas). My next, was a JL Hudson's (remember them OF?) with $300 line of credit (two men's suits). I thought I had 'made it' when I was 'invited' to apply for an Amex account. My butt was sore for days after their investigation of my financial status and credit history.
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I think mine was a shell card and gas cost 30 cents a gallon then.. I had a Hudson's card too....
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Thanks guys for all the reviews and comments.....I would really aappreciate if we all work together and totally stop the store managements from running behind us to open the store credit cards...the only high balance i had was of my car loan which was 9500 dollars due and my citi card of 4000 dollars due...but i was never late on any payments and i always did my payments on time.... dont ever evr apply for an AMEX...
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American Express keeps sending us the promotion of their credit card as if they are inviting us to have one. They keep sending us the balance letter as if we still are their cardmember. But it is ridiculous that they have already cancelled our credit card without reason for 3 months. What is the problem with them?
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(01/17/2009) 
