American Express Raising Interest Rates Dropping Some Fees

In today’s economy where banks keep dropping rates on savings products, credit card companies like American Express are raising their credit card rates. Many people, including yours truly, are starting to get letters in the mailbox from American Express stating that the interest rates on some American Express cards are increasing. They say that they are doing this since everyone is raising rate, but you know as well as I do that they are losing money since people just stopped paying their bills. Now they are going after those who pay every month by tacking on a little bit more.

They were nice enough in my letter to tell me which cards this is affecting, but of course, can’t tell me what the new rate is going to be. Not that I should really care since I don’t carry a balance, but it is a tricky move for those of you that need to carry a balance since you have no idea what your new payment will be until you need to pay it.

In the letter they also do mention that they will no longer be charging a over the limit fee. I guess they are hoping that you start racking up more debt and now at a higher interest rate, they don’t need to charge those fees anymore.

So keep an eye out for that new bill to determine what your new interest rate is. Hopefully the increase won’t break the bank, but you should always try as best as you can to get out of credit card debt and pay off the card every month when you use it.

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