EXCLUSIVE: More American Express changes – interest rates go variable, ‘over limit’ fees scrapped

American Express is about to announce another round of product changes.

These will impact ALL credit cards (British Airways, Starwood, Nectar, Costco, Preferred Rewards Gold etc).  The good news is that there is nothing major to worry about this time.

The changes will take place on 1st October.

Interest rates move to variable pricing

I would hope that no Head for Points readers pay interest on their American Express credit cards.

With one exception – the ‘low rate’ version of the American Express Rewards Credit Card, see here and pictured above, which is a competitive 9.9% APR variable – the interest rates charged on Amex’s credit cards are substantially higher than you can find elsewhere.

From 1st October, interest rates will track, and change, in line with adjustments to the Bank of England Base Rate.  If there is a change in the Base Rate, American Express will adjust the interest rate on its cards within approximately 60 days.

These pricing will apply to both new and existing customers.

Good news …. the over limit fee is being removed

At present, American Express charges a £12 fee to anyone who exceeds their credit limit.

This fee will be removed on 1st October.

These changes are minor, and are actually positive for most people – I assume most readers do not pay interest, so they are net winners from the removal of the £12 fee for breaching their credit limit.

If you have an American Express credit card, you will receive a formal notification of these changes over the next few days.

---

Want to earn more points from credit cards? – January 2022 update

If you are looking to apply for a new credit or charge card, here are our January 2022 recommendations based on the current sign-up bonus. 

You can see our full directory of all UK cards which earn airline or hotel points here. Here are the top current deals.

There are special sign-up bonuses on both of the BA American Express cards until 28th February 2022. The bonus on the free card is doubled to 10,000 Avios and the bonus on the Premium Plus card is increased from 25,000 Avios to a huge 40,000 Avios.

Earning miles and points from small business cards

If you are a sole trader or run a small company, you may also want to check out these offers.

The bonus on the Capital On Tap card is increased from points worth 10,000 Avios to 30,000 Avios until 4th February 2022.

The bonus on the British Airways Accelerating Business card is increased from 30,000 Avios to 45,000 Avios until 28th February 2022.

For a non-American Express option, we also recommend the Barclaycard Select Cashback card for sole traders and small businesses. It is FREE and you receive 1% cashback on your spending.

Apply 31st March 2022 and your cashback will be increased to 2% for the first three months.