[Finance] WTF American Express?

[Mustafa II]

Out of all the things to complain about in this country - banking is not one of them.

Unlikely many countries, it's free - more than free in fact - lots of rewards available for the financially savvy.

One person complaining that their overdraft was reduced - if you think about it, it's pretty mad that they gave you free credit like that in the first place.

Credit cards are brilliant - as long as you pay them off every month in full. Amazing consumer protection, and often semi-decent rewards just for spending money on things you would anyway.

Also these days, even the morons who get scammed by sending £1,000s to India from their current accounts often get their money back in full.

Great savings accounts on offer. Competitive borrowing rates. Even people in stupid amounts of debt get generous repayment plans in place if they can't afford it.

Banking in the UK is genuinely fantastic... even more so if you're on the ball and financially savvy.

 

[Herr Tubthumper]

I too pay off my Amex every month - it’s got a massive APR and is useful only for racking up Avios, discounts at the Amex stadium, and biffing things I want to buy into the following month’s paycheque.

No idea how American Express make all that much money charging interest, if most customers are like us.

They also charge merchants a percentage. They won’t make any money from you, but they will from the other side of the transaction.

 

[pasty]

Nah, this'll just be a bit of code along the lines of payment made > 5 and avail credit >50% = send letter. Nowhere near the vast data learning models used in AI which try to reason an answer rather than just following rules.

So literally the right answer. I used to work for them in printing and I once queried why debt letters were being sent out, chasing debt that was less than the cost of printing and sending the letter chasing it.

I did suggest we could easily apply code to not send a letter if the debt was less than x, but was told no.

 

[Springal]

They also charge merchants a percentage. They won’t make any money from you, but they will from the other side of the transaction.

And card fees of course on the premium cards

 

[sparkie]

Out of all the things to complain about in this country - banking is not one of them.

Unlikely many countries, it's free - more than free in fact - lots of rewards available for the financially savvy.

One person complaining that their overdraft was reduced - if you think about it, it's pretty mad that they gave you free credit like that in the first place.

Credit cards are brilliant - as long as you pay them off every month in full. Amazing consumer protection, and often semi-decent rewards just for spending money on things you would anyway.

Also these days, even the morons who get scammed by sending £1,000s to India from their current accounts often get their money back in full.

Great savings accounts on offer. Competitive borrowing rates. Even people in stupid amounts of debt get generous repayment plans in place if they can't afford it.

Banking in the UK is genuinely fantastic... even more so if you're on the ball and financially savvy.

Free ?

Overdrafts generally work out at just under 40% APR.

 

[Mustafa II]

Free ?

Overdrafts generally work out at just under 40% APR.

Yes, banking in this country is free. In many countries you have to pay for the privilege of having a current account.

Also, overdrafts are optional. It's only really advisable to have them to avoid missing direct debits which could affect your credit score. Anyone who actually uses their overdraft intentionally is either in serious financial difficulty, or financially irresponsible, or both.

 

[sparkie]

Yes, banking in this country is free. In many countries you have to pay for the privilege of having a current account.

Also, overdrafts are optional. It's only really advisable to have them to avoid missing direct debits which could affect your credit score. Anyone who actually uses their overdraft intentionally is either in serious financial difficulty, or financially irresponsible, or both.

But you said banks in this country give free credit.

They do not.

 

[Mustafa II]

But you said banks in this country give free credit.

They do not.

Post #9 - a user complained that his free overdraft limit was reduced. Free overdrafts are often given to students, as well as other banking promotional offers.

There are other ways that banks offer free credit for a time, for example fee-free 0% interest credit cards.

Financially savvy people often choose to take advantage of these by utilising them, and putting the money aside in a high interest savings account, and pay it off in full when the offers expire.

Others will utilise them, not have the money to pay it back when the time comes, and get themselves in loads of debt as a result.

 

[North of Robertsbridge]

And Amex hospitality at matches is great, watched a game from there earlier this month. With parking 20 yards from their private stadium entrance

 

[Sirnormangall]

No doubt completely unrelated to hitting a target for an end of year bonus. The financial services sector is a master at that.

 

[dazzer6666]

I too pay off my Amex every month - it’s got a massive APR and is useful only for racking up Avios, discounts at the Amex stadium, and biffing things I want to buy into the following month’s paycheque.

No idea how American Express make all that much money charging interest, if most customers are like us.

1-2% on every single purchase you make

 

[The Optimist]

Barclay card offered interest free for the life of the balance on season ticket purchases years ago in the Withdean era. I’m still making the minimum payment on that now (£5 per month).

 

[dazzer6666]

But you said banks in this country give free credit.

They do not.

If you pay your credit card off in full every month you get up to several weeks of free credit.

 

[Hamilton]

Nothing is ever free.

 

[Official Old Man]

After seeing this thread I finally ordered an Amex Card. Offered me the standard £1200 credit, enough for my intended use to get 10% off at the Amex Stadium. Arrived today with £9900 credit limit. Blimey....

 

[jakarta]

After seeing this thread I finally ordered an Amex Card. Offered me the standard £1200 credit, enough for my intended use to get 10% off at the Amex Stadium. Arrived today with £9900 credit limit. Blimey....

Mine is bigger than yours (ooh Matron) and will never get used- what are they thinking about?

 

[Official Old Man]

Mine is bigger than yours (ooh Matron) and will never get used- what are they thinking about?

Hoping we go out on NYD to the sales and bash the lot in a day. Then charge high interest rate when it's not paid off.

 

[Colonel Mustard]

After seeing this thread I finally ordered an Amex Card. Offered me the standard £1200 credit, enough for my intended use to get 10% off at the Amex Stadium. Arrived today with £9900 credit limit. Blimey....

Do you pay an annual fee?

Edited - ignore. I’ve signed up too and can’t see an annual fee mentioned.

 

[Questions]

Nothing is ever free.

What about a free lunch ?

 

[Dave the OAP]

Nothing is ever free.

Air is free