If you pay your American Express bill 7 days after the due date, the credit card company says you’re over 30 days past due. Every other issuer only says you’re 7 days late. What gives?

When CardHub investigated, it turns out that the card company won’t assess penalty APRs or report you to credit bureaus any earlier than other credit card companies. However, a consumer who doesn’t know that American Express uses a “different nomenclature,” as one spokesperson put it, could get confused.

Which is maybe what they want. If you think you’re more in arrears with AmEx, you might be inclined to pay them ahead of your other bills.

Late Payment Policy Study – 2010 [CardHub]

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