Amex bumped up the rate on my Blue card a few months back. I called, they refused to lower it back to where it was. I emailed the CEO, got a call from an executive assistant who said that there was nothing they could do, that the decision was made at the highest level and was an across the board increase. He said they've lost a number of customers over the increase, but that it was necessary for them to remain viable. I was impressed by the candor and the overall way it was handled, but still disappointed that they wouldn't drop my rate back down.

I received an letter the other day that AT&T was going to cancel my credit card if I didn't use it. Since it's the oldest card I've got, I presume I need to keep it for credit score reasons. I bought lunch today on it and plan on paying it off as soon as the bill comes due. I'm getting pretty tired of credit card companies.

I don't care that they increase my interest rate - I just pray and pray that they don't decrease my limit.

My rate hasn't increased, only my limit. Which doubled. Maybe they are playing some sort of mindgame with me, I dunno.

Some really strange things are coming out of credit card companies. I have great credit and almost no debt, and a good income, but I was turned down for a visa card by chase bank. I've never been turned down for credit. The "notice of adverse action" said that the reason I was turned down was that many recent inquiries show up on my credit report. I pulled my 3 reports - my lowest score was 790 - the inquiries go back for years, but the only recent one was a landlord checking my credit. I guess they have to state a reason, and that was the only one that fit. Why would they turn away a qualified customer? I do have another Chase CC that I never use - I wonder if they thought I was not going to use the card - anyone have any insight?

@U-235:

Who knows.

I'm a relatively new customer (August 2008) and AMEX has not touched my rate or limit either. I have paid in full on time, every time since opening the account.

From the horror stories that keep coming out it makes me wonder if it's just certain customers or if eventually my number is going to come up to be AMAXED.

"I won't close the accounts since it'll probably do my FICO no good, but oh well. I'll just be the customer they hate, the type that earns them no interest"

The type that they can send advertisements to on your dime, not theirs. Remember the TOS changes?

@1234tu:
Don't bother with Chase. They raised my rates for a mistake on their part and refused to lower them back down.

I'm glad I don't have credit cards anymore. Who cares about your FICO Score, as Dave Ramsey puts it, it's your "I love debt score".

@johnarlington: AT&T has a credit card?

For some reason, I actually had the credit limit on both of my cards raised. One of the cards I paid off 6 months ago and haven't touched. The other one carries a balance (just bought a house, still getting settled) that will be paid off in 3-5 months. I do tend to buy big-ticket music gear every so often, so maybe they like the 3% + interest they are getting from me.

@masterasia: Credit cards don't automatically mean debt, you know. I have credit cards and I've never carried a balance. It's a tool, just like cold, hard cash. Only if someone steals my credit card, I can report it and stop any attempts to use it. If my cash gets stolen...well, I guess I can make some kind of report to the police, who have a lot more important things to do, like solve murders.

@johnarlington: I still have my AT&T card. I only use it for balance transfer dump since they offered me some ridiculously low rate on the balance until it's paid off. It's nice to actually make some headway on the pile.

@pecan 3.14159265: It's a tool until the CC company pulls it. You know, when something happens and you actually might need to use it. Don't count on it like a crutch.

@U-235: The doubled my limit not long ago as well. Guess they want me to put more on the card. My rate hasn't increased either, it is still my lowest rate credit card.

I would not let my FICO stand in the way of cancelling a crappy credit card.

At the same time, I am in the enviable position of FINALLY not having to use my credit cards for all those monthly "emergencies" I hadn't budgeted for.

/knock on wood

I won't let the man hold me down, though. Credit companies that show their colors like that don't deserve ANY of my business.

@1234tu: Banks make most of their profit on fees and such. Think about this from their perspective: Your lack of poor credit and small debt is now considered an "Adverse action".

I'd write them back and demand to know what this "adverse action" is. Not that you're interested in actually getting the card, anymore, but just to mess with them for having the equipment to make such a claim.

@pecan 3.14159265: BofA recently reduced the limit(cut it in half) on an older USAir Visa card. I didn't count on it, but it still annoyed me. I called, asked them to put it back to the original limit.

The CSR declined; said I could "reapply" for the old limit. I said, "Tell you what, just cancel the card. Oh, and cancel the $50 annual fee that you just charged me, too." The CSR politely did both.

Amex is culling the herd and applying Cliff Clavin's Buffalo theory. I feel smarter already.

Doesn't Amex charge an annual fee. I'd take the hit on my FICO over paying that.

Amex, don't worry, I just left you yesterday. I'm not letting the door hit me on the way out.

Harcourt: There's no charge for their "credit" cards only their charge cards.

After my last call with Amex this morning I'll very likely take advantage of their offer to at least recoup the added interest they took and completely pay off the full balance. FICO be damned, it won't matter that much anyway... I hope.

I had $7000 available credit (my limit was $10,000)and they dropped my credit limit so low, I now only have $60 of credit and this is after I had actually paid off my card in full a year ago. FTW?

@HarcourtArmstrong: Many of their cards have no annual fee.

What seems to be missing from the Consumerist summary of Courey's blog posting is that there was a trigger for the rate increase. Granted it's a moronic robotic response on Amex's part, but what happened is that Courey made a payment by mistake (probably on Amex's site) from a bank account that Courey had just closed instead of the new account just added. Even though the mistake was caught immediately, Amex pushed through the payment from the closed account and hit Courey for a "returned payment" and jacked the account up to the penalty rate.

So this isn't exactly an example of Amex screwing this individual customer at random, they're just screwing the customer because "it's policy" and no matter how quickly you catch and try to rectify your own mistakes, Amex will apply their policies to maximize their profits.

AMEX leave home without it.

@GearheadGeek: And I repeated Consumerist's typo of the OP's name, it's Corey, not Courey.

@johnarlington: At least they warned you that they were planning on canceling it!

@IfThenElvis: I always do feel smarter after a few beers ;)

@GearheadGeek:

No worries. Didn't even notice the spelling :)

But yes, I agree, it was indeed my mistake, I should've noticed that when I made the payment through their website that I actually made the payment using my WaMu account and not Fidelity. I only noticed when I got the confirmation page. I immediately called to cancel that payment but that was not an option apparently. The person I spoke to then said it wouldn't show up on my credit report, wouldn't affect my rate, and they'd refund the $38 charge. It seems only the latter was true.

So yeah, they're definitely screwing all their customers. I really wouldn't be so miffed if they'd just reverse the additional interest they charged and drop me to my original rate. Especially considering the exact same payment scenario happened at the same exact time against my Amex Clear card. There were no charges to that card and it still sits at 8.89%.

@satindevil:

Ahh but the warning looked like any of the other 12 mailings I get from them. It also looked like the mailing that informed me that the rate with from 9.99 to 24.99. yea! [waving little flag]. Since I haven't carried a balance since 2004. It really isn't an issue... unless I actually want to use the card top finance a big ticket purchase and pay it off over a year.

@pecan 3.14159265:

AT&T Universal card. For a long time is was a really good card. Low interest rate, minimal hassles. They appear to have been acquired by CITI some time ago which explains the sudden interest in trimming me from their roles.

@1234tu: @1234tu:

What usually happens is the automated system that sends out rejection letters picks the top thing listed on the report of items effeting the credit score. When I worked as an underwriter for a bank, the equifax reports all contained possible reasons to reject an application. it doesn't matter if your score is 450 or 850, there will be reasons stated at the bottom of the report. It doesn't mean you have to reject them, but it allows automated systems like the one Chase probably uses to fill in the reason for the rejection on the auto-mail-merge.

@menty666:

That's why I picked up the card. I transferred over a balance accrued during college at 0% plus transfer fees. I paid it off many years ago and it is now an emergency fund card.

@HarcourtArmstrong:

The Costco amex is covered by costco fee

@kwsventures:

I only use mine to get into costco, I don't actually use it to purchase anything

@GearheadGeek: I've done this, too, and called them immediately - and they said they could do thing about it. You're basically hosed at this point. The account was open, so we had to some fancy money shuffling to keep from bouncing the account. Most other places allow you to cancel a pending transaction.

How is it possible that one 'needs' a credit card to improve one's credit yet credit card companies are able to lower one's line of credit to within $117 of one's balance, thusly damaging one's credit?

FICO makes less and less sense to me the more I read about bullshit like this.

I don't understand why the OP is pissed off! Is it that we, as a nation, have grown to depend on credit? Demand it? Do we think we have a right to credit?

CREDIT, CREDIT, CREDIT! You have no right to take away my CREDIT!

My god, this is what got us into this financial crisis, spending more that we have -- more than we earn. We need to give up this addiction!

[/rant off]

@t-r0y: Except, it has nothing to do with the amount of credit. What I care about is large corporations abusing their customers. I've not requested that American Express increase my limit. I'm going to pay off 100% of the balance in the next month anyway. However it's totally unfair to double my rates and charge me an extra $350~ in interest in the mean time.

Furthermore what does matter is the impact the FICO score plays on the amount of money every person over 18 has to pay to be able to actually live. Sure I and many people could go without credit cards. In fact in the past 3 months I haven't made a single charge against any credit that wasn't paid immediately when I got home.

Just the other day someone I know wanted to buy a car, however they've chosen not to have a credit card and instead use debit and pay for things in cash. What has this done for them? Well they've got 0 credit history and no bank is willing to lend them any funds at any rate. Now this person is forced to make serious decisions because work is no longer in a location that's viable for public transportation.

So to repeat, I don't care if American Express drops my credit limit to nil so long as it doesn't have any other consequences, which it clearly does.

@Corey Gouker: If it makes you feel any better, they jacked my rate by 25% and started balance chasing me, and we DIDN'T make any mistakes. So you were probably screwed anyways.

@Corey Gouker: Am I to understand nobody has Parents/Grandparents to turn to for cosigning anymore? :) Not to mention getting a car with completely jacked credit is still possible. Sure you won't get a very nice car for your money but at least you have transportation!

Also, I'm with a previous poster... The more I learn about FICO the more I think it's a scam as well. What credit is today vs what it was 50 years ago is so different.

@masterasia:

It really isn't, you know. But keep on drinking the Ramsey kool-aid, by all means.

@Zain:

The card in the photo has no annual fee. AmEx has several no-AF cards, all of which are credit cards (thereby dispelling that "don't you have to pay AmEx off in full every month? Who needs a card that won't let you carry a balance?!" question that's sure to be on here somewhere!)

@Corey Gouker:

Some of their credit cards (the Delta ones, at the very least) do have annual fees. No AF on the Blue cards or the Clear or... most of the others, I forget what they offer now!

@CRCError1970: Not everyone has the benefits of someone willing to cosign for them. Not all people have the luxury of having a job that doesn't require transportation to begin with to even be able to save up enough money for anything more than a total beater or a down payment on a more reliable used car or a new loan.

I totally agree, FICO and the credit system is totally screwed. I mean it's a system where a single number could affect so much yet mean so little. It's a total scam.

Let's just take this case as an example, keeping in mind I'm no human FICO generator. My score is 823. Amex reports that I had two returned payments and since there's really nothing qualifying this line entry in my report, my score drops to below 700. I go to get a car loan and instead of that peachy deal of 2.9% I'm instead given 6.9% because I'm no longer a prime customer. Oops there goes loads of money in interest down the drain and the other chain reaction to any other credit accounts because of some stupid mistake.

I mean geez, insurance companies, wireless operators, utilities, apartments, so many of them all run your credit. All of them in some way tie what you pay to your credit score. So it seems at the end of the day, like it or not, the system is thrust upon us.

The credit system as it exists today is pure evil.

Lately, after hearing stories like these, I've been worried AMEX might drop my limit without warning. I never carry a balance and, even during my highest spending period that lasted about a year, I only used 1/13th of my limit. The past 3 months I've really cut spending and have used probably 1/26th of the limit. And I'm not making those numbers up, either, those are actual usage amounts.

I think I may be a credit card company's worst nightmare; good credit, high limit, low usage, no balance. M'oh well.

@masterasia:

It matters if you have to get a mortgage. Few people buy a house in cash.

@Decius:

Few smart people buy a house from a mortgage broker who only relies on the most simplistic of credit checks. It is possible, and recommended, to find a broker who will do much more than just pull your FICO score and base their decision on that. You can get a loan without a FICO score, you just need to work with a better loan officer.