American Express account holders are finding themselves scrutinized and their accounts being altered. American Express is using factors such as where you live, who holds your mortgage, and where you shop to determine your worthiness with them. American Express cardholders are finding their credit card limits decreased and even their accounts closed.
American Express is using a method that determines which of their account holders will have their accounts changed. American Express has stated that an account holders payment history, income, and their credit bureau history are the determining factors. Other factors are also being looked at by American Express because of the state of the economy. Cardholders who obtain subprime mortgages and those who live in areas where there is a deterioration in home values are finding they are hit hard by American Express and their credit worthiness analysis.
Another example of American Express’ cutting methods includes where you shop. Shopping at businesses such as rent to own stores can determine if your account stays open.
In the past, 80% of American Express cardholders have seen credit increases and 20% were effected by cuts.. Because of the struggling economy, the ratio is now 50-50.
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