Why CCCs WANT you to BT

LizardKing inspired me to read the Amex website
regarding Balance Transfers. Under FAQ they have
some answers that surprised me with their frankness.

Why would I want to do a balance transfer?
Most people do not pay off their credit cards in full each month, they "carry a balance." If you are carrying a balance on your other credit cards, balance transfers can save you a lot of money in Finance Charges. Why? Because when you transfer balances to your American Express Card Account, we can give you a lower promotional interest rate and a bigger credit line.

Why does American Express want me to do a balance transfer?
It's simple. If you bring us your business, we can afford to give you better terms. If you have no balances with us, we can't afford to give you a promotional rate or a higher credit line.

I knew that companies like BTs. I was surprised that they would be this honest.

 

You just reminded me of something. What do you think made them get cold feet on the LOCs?

That was sweet money for them, just as you suggested.

Do you think that there was some flaw in their software that caused them to give out too many accounts, so they just cancelled the entire program?

It seemed for a while here on CN that everyone and
their dog was getting a LOC at Amex. Then they stopped taking aps. Then they notified everyone they were ending the program.

It seemed like some kind of goof-up but I can't figure out where.