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 miles and points from credit cards? Click here to visit our dedicated airline and hotel travel credit cards page or use the ‘Credit Cards Update’ link in the menu bar at the top of the page.)