Author Topic: What is American Express Thinking?  (Read 4130 times)

Numbers Man

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What is American Express Thinking?
« on: December 03, 2014, 11:14:08 AM »
My son just graduated from college and is starting his first real big boy job in a different state. He has been getting credit card solicitations from all the credit card companies, including American Express, for the last few months. He was denied an American Express Card after signing up for his Costco Card. The reason, he didn't have any retail credit experience. His Fico score was 718 and his income was over $60k.

So why do these credit card companies waste so much marketing dollars sending solicitations?

pzxc

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Re: What is American Express Thinking?
« Reply #1 on: December 03, 2014, 11:35:44 AM »
For the same reason AT&T still sends me advertisements even though I cancelled them because they could not give me the advertised speeds.  Because these companies are so big that the left hand does not know what the right hand is doing.

gimp

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Re: What is American Express Thinking?
« Reply #2 on: December 03, 2014, 12:11:17 PM »
I've been rejected twice - by a bank where I banked, and by a credit union where I ... credit. Weird, considering my high income and excellent score.

On the other hand, discover approved me online when I applied on a whim. That whole "30 second approval thing" - worked. They sent 21-year-old-me a ridiculously massive credit card limit, too; enough to buy a new econobox or a couple acres of land in some states. Hilarious. I debated having them lower it, but then I figured it'd be a great emergency lifeline in case anything came up.

catccc

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Re: What is American Express Thinking?
« Reply #3 on: December 03, 2014, 12:52:26 PM »
Discover Card gave me a CC when I was 15.  I must have had no income and no credit score.  I think the limit was like, $4k.  Thank goodness I already thought interest payments were a ridiculous concept at that age.  I just thought I was cool to have a credit card.  Paid it off monthly like I do now.

pzxc

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Re: What is American Express Thinking?
« Reply #4 on: December 03, 2014, 01:01:10 PM »
Discover Card gave me a CC when I was 15.  I must have had no income and no credit score.  I think the limit was like, $4k.  Thank goodness I already thought interest payments were a ridiculous concept at that age.  I just thought I was cool to have a credit card.  Paid it off monthly like I do now.

Wow.  You could have ran that card up to the max and then refused to pay.  You can't enter into a contract with a minor, so Discover had no valid contract with you to repay.  They certainly would not have given you the account if they knew you were 15.  Did you lie about your birth date on the application?  There must be more to the story here (if it's true)

gimp

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Re: What is American Express Thinking?
« Reply #5 on: December 03, 2014, 05:14:34 PM »
Yeah, I don't think you can get a CC under 18 unless it's piggybacked with your parents. These days, even at 18 it's hard, you tend to want to be 21, since the government cracked down on predatory college kid credit card loaning practices.

I do use my discover card as my sole CC and really, I have zero complaints. They're quite excellent. But I can't see them being stupid enough to offer a CC to a 15-year-old unless there's more to the story.

more4less

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Re: What is American Express Thinking?
« Reply #6 on: December 03, 2014, 05:34:13 PM »
I love AmEx! I applied for Blue Cash card and was super happy with it. Then some time later I decided to open High Yield Savings account with them... and failed since I couldn't go through their verification process (basically prove that me is me). I find rather funny that it was easier to borrow their money rather than deposit some of mine.
PS: I opened HYS savings account from the second try.

Future Lazy

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Re: What is American Express Thinking?
« Reply #7 on: December 03, 2014, 05:37:41 PM »
I haven't got a clue, to be honest. I've only been collecting credit cards for 2-3 years now, and my credit limit is already up to well over 13k - I only make 24k per year, and definitely don't lie about anything on my applications. I'm pretty sure I could keep applying for credit cards and having them handed to me. Discover even offered me a personal loan up to $25,000 - you know, for debt consolidation. Not that I have any debt.

I think I get like, 5-7 offers a week from various companies? They're probably the only thing that keeps the USPS in business anymore.

Good thing - or bad thing? - for those credit card companies that I don't suck at money. : )

johnny847

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Re: What is American Express Thinking?
« Reply #8 on: December 03, 2014, 05:48:49 PM »
I don't have a good explanation either, but it is worth noting that Amex's business model is different from all other creditors. Amex charges slightly higher transaction fees, and doesn't like to see people carrying balances. They'd rather have lower risk and lots of transactions. All other creditors like to see a decent proportion of their customers carry balances and pay interest.