StockNews.AI
AXP
Market Watch
7 hrs

I don’t want to pay the new $895 American Express Platinum fee — but will canceling the card hurt my credit score?

1. American Express raised its Platinum card fee to $895, spiking 29%. 2. Cardholders may receive retention offers to avoid cancellation, impacting customer retention. 3. Downgrading to a gold card might reduce perks and sign-up bonuses. 4. Credit score impacts from canceling charge cards are minimal, as utilization rates aren't affected. 5. The growing trend of high fees reflects the fragmented rewards model in credit cards.

8m saved
Insight
Article

FAQ

Why Bearish?

The increase in fees may discourage customers and induce cancellations, impacting revenue. Historical increases in fees often led to customer churn, affecting brand loyalty.

How important is it?

The article discusses relevant fee increases and customer sentiment, which can directly impact AXP's perception and revenue.

Why Short Term?

Immediate customer reactions may result in heightened calls and potential cancellations, particularly visible in quarterly earnings.

Related Companies

Related News