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American Express Company Message Board

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  • yourbestfriendintheworld yourbestfriendintheworld Oct 22, 2010 1:38 PM Flag

    AXP gets tough on LOOSERS

    Reducing the credit line of someone who isn't using their credit doesn't have any effect at all on anyone's revenues or profits. In fact, it's a waste of time and money to perform and validate the changes.

    Reducing the credit line of someone who is using their credit reduces potential revenues and profits. It's rather too late to gauge risk on such customers.

    I'd be more comfortable if you'd said that AmEx was tightening its card issuance practices so as to increase average credit lines without increasing risk, or to keep credit lines steady while reducing risk.

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    • Your reading too heavy into my blog . Amex is taking a hard look at credit scores and putting them in groups . A 720 beacon combined with a perfect record of habitual spending and prompt payback is today's perfect customer. Retailer fees are the new source of income for Amex , more so than direct consumer fees. However a 719 score gets grouped with the 680s to 719s which puts this Amex customer into a higher interest rate and a strict limit on available credit despite past payback history . 720 customers are the least likely to default . Amex prefers this group over the highest of 825 plus because those customers usually dont generate any interest fees .

      Listen to Joey , he knows !

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