amex loc is being discontinued.

That sucks ... guess now is the time to use it ...

mj

 

Thanks, leo. Does it say anything else (such as, will they be offering a similar product, etc.)


Saar

 

Thanks Leo, just received my statement, no letter yet.


Hmmm guess I should use what I have left, prime + 2.99 could pay off some debts??

 

Just called AMEX 1-888-356-1006 and verified the LOC is being discontinued. The rep felt that all letters have been sent this week. She did not know if anything else would take its place.

 

What are they going to do, let you pay it off at the EXISTING terms, or send a DUE IN FULL DEMAND BILL???

 

George-

They can't send a due-in-full unless you've defaulted. They'll have to let us pay according to existing terms.

I just opened a membership banking checking & overdraft just so I could xfer to pay the LOC, and to keep my work expenses a little more distinct from personal.

To be totally honest, I'm underwhelmed with Membership Banking - it's "ok" but if it weren't for the 5,000 bonus membership rewards points, I'd close it today.

-mj

 

Tommyy

Did the rep state that they would honor the checks as long as they posted before June 16??


Thanks

 

Momof3,
It was the reps understanding that the company will give a specific date the account will close. As far as she knew, I could still write checks up to the cancel date. Again, she was not positive of this. I just wrote my last check to be deposited Monday.

 

I wouldn't pay ANY loan or credit card with a AMEX LOC check...deposit it in your checking account and wait till your sure it has POSTED to the LOC account...

 

Just called AMEX LOC back. There are two seperate mailings. One on 5/31 and one sometime in July. You can write checks on the account up to the date it closes. The May 31st letter states the account will cancel on 6/17. She wasn't sure of the July date but felt it would be 2 weeks after the letter goes out.
The account will not be due all at once. As long as you don't default you keep your rate until its paid off.

 

Thanks tommyy

And don't worry GEORGE, I have always deposited the checks into my checking account and wait til it clears, after my intial fiasco with them, I never truly trusted their membership banking LOL.

 

Is the line of credit on your credit reports or is it still hidden?

Because if it's listed as a revolving credit line and then listed as closed (but you have a balance on it) it will tank your scores.

The credit limit on a closed account isn't taken into consideration for revolving ratios.... so you would have 10k/0 limit in your ratios

Of course, if it doesn't list on your reports then no big deal... and if you're not applying for credit in the near future, no big deal still... that's a great bt rate.

I wonder why Amex is shutting down so many things lately... not a good sign in conjunction with rate hikes.

 

Make sure it is stated "ACCOUNT CLOSED BY CONSUMER"

Even though AMEX is closing it...they didn't CLOSE it for "CAUSE"

PAID/NEVER LATE

or if not paid in full yet...

CLOSED/NEVER LATE

 

Marie,

The LOC is still hidden Which is always good!

 

weirdly enough, I don't think the balances on closed accounts are included either.

Also, though it subjectively looks worse I have never seen any evidence closed by creditor alters score vs. closed by consumer.

 

CREDITOR vs CONSUMER might be no different to a computer...BUT IT "LOOKS" BAD WHEN SOMEBODY "LOOKS" AT YOUR REPORT WITH THEIR EYES...

 

They will take it as BAD...(ASSUMED)

 

I have seen it in print before, but all I can find right now is this cheesy looking realtor that has it on their site:

Closing an account shows up as a positive on your credit report provided it is reported as "closed at the request of customer."

But I have read it on CreditNet before as well.

Even ASK MAX on Experian recommends you have it listed that way:

You should contact each of your lenders and ask them to close the accounts. You also should ask that the lenders report the accounts closed at your request.




-Peace, Dave

 

I found a whole list of the Experian codes and listings. They are definitely coded differently, they could easily weigh negatively in scoring algs.

-Peace, Dave