Phone call from Amex

trickster

Yesterday received my letter from Amex confirming acceptance for my Amex LOB 4.9% card.

I had requested a BT from Capital One of around £1800. The letter confirmed this was taking place.

Today I got a phone call from a very nice sounding young lady from Amex, welcoming me to the company and stuff.

She went on to ask me a few questions. How much would I be spending on the card per month, what would I be using it for, etc.

Now obviously I didn't tell her that I wasn't going to use it and just pay off my balance, as I was hoping to get a decent credit limit, so I could do a BT when my 0% barclaycard runs out.

So I told her I was probably going to make the odd big purchase, holiday in fact. She asked how much I would probably spend, so I replied about £1500 or so.

Soon after this discussion she told me my credit limit, which is more than enough to cover my Barclaycard BT in a few months.

Now, do you think my answers had a bearing on the credit limit? Or was this really just a courtesy/fact finding call?

maforduk2

No idea sorry!!!
Abit ominous though really that they should take the time and effort to do that.

Tr@cker

I thought they gave you the credit limit with the acceptance letter-they did mine on-line including (amazingly!) the credit agreement without a personal signature!
I BT'd 4 grand at 4.9% LOB and certainly wont be using the card at all until the whole balance is cleared-probably in about 3 years in my case.
They may have sussed this and realised a lot of people are savvy with cards now and are doing the same thing as me.

eagle

I had a call like that when I applied and got my first AmEx card. That was about 2 years ago now.

They were very picky in my case. Asking some very personal questions like what I'd be spending on and why. Naturally I put on the diplomatic answering hat and gave little away but I wasn't told anything about a credit limit (that all came in a letter). Now, this might mean they've now changed their policies, but I personally think it was just fact finding. Why should my credit limit be affected if I'm going to Spain for my holidays and spending around 1k? I could be spending that same amount in Scotland!

trickster

I'm just wondering if I had said, 'Oh I'm going to cut it up and just pay off my balance' would they had kept my limit to an amount slightly greater than my BT.

AMILLIONDOLLARS

I think they wanted to know whether you'd be spending at all after you've done your balance transfer. I've balance transfered £7k on my Amex at 4.9% the card has now been cut in two, so no spending on it. I suspect a lot of people are doing this hence this questioning policy has now been put in place.

Its two fold marketing, finding out how viable their new customers will be. Can you imagine all of us not spending on the card:D not a lot to made at 4.9%!!

Rafter

Nothing to be made at 4.9% in fact.

4.9% less 4.5% to borrow the money at the Bank of England Base rate = 0.4% margin.

On a £5000 balance that is £2 a month margin - hardly enough to cover producing the statement and processing a payment.

Add on top the cost of bad debt, marketing costs etc and they must be making huge losses!

R.