American Express is paying some of its members $300 to close their accounts.  Amex has been know to cater to wealthy clients expanded their base to people outside of this sphere.  The plan has backfired and they are losing millions.  American Express is looking to manage credit risk based on customers credit scores and credit profiles.  Accounts must be closed by the end of March.

Credit Card companies are cutting credit lines

Just like their competition Capital One, Chase, Discover and Citibank, American Express is selectively cutting credit limits to customers and not going after as many new clients.  Keep an eye on your mailbox, that credit card in your walled may be finding a new home in the garbage can.

How do you use a credit card? The credit card industry has changed the way we buy consumables. You see Visa, Master Card, Discover and American Express logos everywhere now. You can even buy your hamburgers at McDonalds with a credit card. It is now convenient to make purchases even if you don’t have the money. Anyone who survived the depression would probably cringe. Back then if you didn’t have the money you didn’t buy it. Bank loans were tough to come by. So if you couldn’t afford something you just made do. Now you can go buy something an hope to figure out how to pay for it later. This type of thinking has made us a nation of debtors. At no point in our history have we seen such an abundance of debt and financial issues facing people. Bankruptcies in our country are at an all time high with no relief in sight. Continue Reading »