Amex announces changes to Amex Gold benefits, brings back Rose Gold design

American Express has been one of the top issuers when it comes to meeting cardholders’ shifting needs. Last year, the issuer waived transfer fees for domestic airlines, offered valuable limited-time benefits and extended the period to earn a welcome bonus.

Amex has also announced new perks on The Platinum Card® from American Express, the American Express® Gold Card and the American Express® Green Card*, as well as changes to benefits on the Gold card. These changes are great news for cardmembers who frequently order food delivery – especially those who prefer Uber Eats.

Additionally, American Express is making the Rose Gold design a permanent option, available to new cardmembers and current cardholders who want to switch.

See related: Best credit cards for dining

Complimentary Eats Pass membership from Uber

Amex Green, Gold and Platinum cardholders now have access to a complimentary Eats Pass membership*. This monthly subscription option for Uber Eats users normally costs $119 a year or $9.99 per month.

The membership comes with deals on eligible restaurant takeout and grocery delivery, such as a $0 delivery fee (including on grocery deliveries over $30 from select merchants) and 5% off restaurant orders over $15 (taxes and service fees may apply and do not count toward order minimum).

To use this offer and get up to 12 months of free Eats Pass, cardmembers need to enroll by Dec. 31, 2021.

*Uber Eats Pass will auto-bill starting 12 months from initial enrollment in this offer, at then-current monthly rate. 

See related: American Express card benefits

Changes in benefits for Amex Gold cardholders

Amex Gold cardmembers are getting an even sweeter deal. On top of the new Eats Pass perk and the existing $120 annual dining credit, they will also get up to $120 per year in Uber Cash. The credits will be doled out in $10 monthly increments. Note that unused credits won’t roll over in the next month. Cardholders will get a notification from their Uber Eats app each time credits are added, letting them know when they are going to expire.

Unfortunately, the updated Amex Gold won’t retain all of the benefits it has previously offered. Namely, the $100 airline fee credit, which could be applied toward incidental airline fees, including for checked bags and seat selection with an airline of your choice, is leaving the card. New cardmembers won’t have access to this credit, but current customers will be able to use it until Dec. 31, 2021.

With the dining credit, Uber Cash benefit and the last of their airline fee credit, current American Express Gold cardholders can get up to $340 in annual credits this year. Considering the card only charges a $250 annual fee, it’s an excellent deal. And even without the airline fee credit, new cardmembers will be able to receive $240 in annual credits, which almost offsets the fee as well.

Rose Gold design is coming back

The American Express Rose Gold card was a limited edition of the Gold Card released in 2018. It came in a metallic rose color and became a popular design option.

In fact, it was so popular the issuer has decided to bring it back as a permanent design option. Prospective cardmembers will be able to choose the design when submitting their application. Existing customers can get the Gold card in Rose Gold too, but they’ll need to contact Amex to request a new card.

Is this a good time to apply for an American Express card?

If you’ve been considering getting an Amex, now might be the perfect time – especially with all the changes coming to the Amex Gold this year. Besides, the card is currently offering a 60,000-point welcome bonus (after spending $4,000 on purchases in the first 6 months) through CreditCards.com, and you might earn even more points if you apply through CardMatch™.

See related: Amex Platinum offers bonus up to 125,000 points via CardMatch

*All information about the American Express Green Card has been collected independently by CreditCards.com and has not been reviewed by the issuer. This offer is no longer available on our site.

Source: creditcards.com

Fed: Credit card balances dipped by $3 billion in December

Credit card balances edged down in December, even as consumers engaged in holiday shopping, as uncertainty about a second round of stimulus checks extended to the latter part of the month.

Consumer revolving debt – which is mostly based on credit card balances – was down $3 billion on a seasonally adjusted basis in December to $975.9 billion, according to the Fed’s G. 19 consumer credit report released Feb. 5.

In December, credit card balances were off 3.6% on an annualized basis, following November’s revised 0.8% dip and October’s 6.7% drop, which came on the heels of September’s 3.2% annualized gain.

The Fed also reported that student loan debt outstanding for the fourth quarter rose to $1.707 trillion, from the third quarter’s $1.704 trillion. And auto loan debt outstanding gained to $1.228 trillion, from the third quarter’s $1.219 trillion.

Total consumer debt outstanding – which includes student loans and auto loans, as well as revolving debt – continued to grow and rose $9.7 billion to $4.184 trillion in December, a 2.8% annualized gain.

For the entire year, credit card balances were down 11.2%.

Card balances had been growing before the coronavirus impacted consumer spending and bank lending in 2020. They dipped below the $1 trillion mark last May, for the first time since September 2017.

See related: 51% of consumers accrued more debt during the pandemic

ABA sees brighter days ahead for credit availability

The American Bankers Association reports, based on input provided by chief economists of large North American banks to its credit conditions index for the first quarter of 2021, that credit conditions (both credit quality and availability) have rebounded from their lows of last summer.

However, all three components of the index (the headline credit index, the consumer credit index and the business credit index) remain below 50, which is not a robust index reading. It indicates that while bank economists expect credit conditions to remain “soft” in the coming six months, they are less pessimistic than they were in September 2020 when the ABA  conducted its last credit conditions survey.

The consumer credit index component of the survey gained to 45.3, its highest level since mid-2019. Economists are optimistic about both the availability and quality of consumer credit compared to September. They expect credit to be more available to consumers in the coming six months, although a small majority expects credit quality to decline.

“Although credit quality is still expected to worsen over the first half of the year for both consumers and businesses, the overall outlook for credit markets has improved significantly since the summer and fall,” said Rob Strand, ABA senior economist. “As widespread inoculations against the virus and new fiscal stimulus measures help heal the economy, banks will continue to work closely with policymakers, consumers and businesses to ensure that affordable credit remains available and recovery strengthens.”

Fed reports easing of credit card lending standards in fourth quarter

According to the Fed’s senior loan officer opinion survey on bank lending practices for January 2021 (which is based on input related to the fourth quarter of 2020), a “moderate net share of banks” reported that they had eased up on credit card loans.

As a result, a “modest net share of banks” also hiked up their credit limits on credit card accounts. And a “moderate net share of banks” reported that there was higher demand for credit card loans during the fourth quarter.

As for the outlook, a “significant net share of banks” is expected to ease up on their standards for credit card loans. They are doing so in anticipation of an improvement in their loan portfolios’ credit quality, as well as a hike in their tolerance for risk.

Also, the New York Fed’s survey of consumer expectations for December 2020 finds that consumers are less concerned about the possibility of missing a minimum debt payment in the coming three months. The average perceived probability of this occurrence dipped to 10.5% for December, from November’s 10.9%.

See related: What happens when you miss a credit card payment?

Jobs edge up in January

The New York Fed survey also finds that on average fewer consumers expect the unemployment rate to be higher a year from now, with this probability declining to 38.9%, from November’s 40.1%.

While the average perceived probability of losing a job in the coming 12 months rose up a bit to 15% (mainly on account of those without a college degree), respondents were also more likely to leave their job voluntarily. However, they were less optimistic about landing a new job if they lost their current ones.

The U.S employment situation was about stable in January, with the economy adding 49,000 jobs, the government reported Feb. 5. “The labor market continued to reflect the impact of the coronavirus pandemic and efforts to contain it,” according to the Department of Labor’s employment report media release. The unemployment rate dipped 0.4 percentage points to 6.3% and average hourly earnings were up $0.06 to $29.96. Also, the job numbers for both November and December were revised down, with November down 77,000 jobs (to 264,000) and December losing an additional 87,000 jobs (to minus 227,000).

In his daily email commentary, Ian Shepherdson, chief economist at Pantheon Macroeconomics, noted, “Coupled with the -159K net revision, this is a significantly softer report than expected, at least in terms of payrolls. Bulls will cite the large and unexpected drop in the unemployment rate, but two-third(s) of the decline was due to a 405K drop in the size of the labor force – a sign of discouragement – while household employment rose 201K.”

He added that “the labor market was frozen at the start of the year, and is completely dependent on the pace of reopening, which in turn is contingent on the speed and sustainability of the fall in hospitalizations.”

Source: creditcards.com

Many consumers are still getting help with debt

At the end of December 2020, around 2.87% of accounts in the auto, credit card, mortgage or unsecured personal loan accounts were still in some form of financial hardship status.

But the percentage of accounts in that status continue to fall from a high of 4.77% in May 2020, according to TransUnion’s Financial Services Monthly Industry Snapshot Report.

TransUnion data includes all of the accounts with accommodations at the end of December plus those that had accommodations pre-pandemic.

The percentage of credit card accounts in financial hardship status fell from a high of 3.73% in May 2020 to 2.42% in December 2020. 

Repayment preferences vary

Among those consumers with loan accommodations, plans to repay the money were diverse, according to TransUnion.

The research showed that around 25% of them want to return to making regular payments and negotiate with lenders to increase the length of the loan, while 19% would like to continue the accommodation and 17% want to catch up by making bigger payments.

See related: Credit card spending rebounds from pandemic plunge

Delinquencies and hardship program situation surprisingly positive

Ted Rossman, industry analyst for CreditCards.com, said that in general, the outlook for delinquencies and hardship programs is surprisingly positive.

“Delinquencies have actually fallen during the pandemic and fewer customers than we initially expected have enrolled in hardship programs, plus many have already gotten back on track,” Rossman said.

For example, Chase reported that more than 90% of customers who exited their assistance program have remained current on their payments.

And, according to the ABA Banking Journal, “Bank card delinquencies fell 109 basis points to 1.52% of all accounts in the second quarter, declining to the lowest level on record. In the third quarter they were essentially flat.”

Rossman noted that government stimulus programs deserve a lot of credit, along with many consumers spending less and making debt payoff a priority.

“It seemed like the stimulus impact was starting to wane late in 2020, but Congress and the Trump Administration agreed on another round of stimulus right before New Year’s and the Biden Administration is intent on implementing an even larger program soon,” Rossman said.

Rossman said we’re not out of the woods yet, but there’s growing optimism that the worst has passed and we will not see nearly as many delinquencies and defaults as we did during the 2007-2009 financial crisis.

See related: What to do if your credit card is closed due to delinquency

Source: creditcards.com

Apple Card temporarily offering $50 sign-up bonus for Exxon Mobil purchases

Many rewards credit cards offer the opportunity to earn a sign-up bonus. Even some no-annual-fee credit cards offer them, allowing consumers to maximize cash back or points without paying every year for simply having the card.

The Apple Card only started offering a sign-up bonus in June, when Apple cardholders could earn $50 in Daily Cash after spending $50 at Walgreens. This was followed by offers in September, October and November, most recently including a $75 sign-up bonus after spending $75 at Nike in-store and online via Apple Pay.

And now through Jan. 31, new Apple Card holders can score a slightly lower sign-up bonus. You’ll get $50 in Daily Cash after you spend $50 or more on purchases with Exxon or Mobil.

See related: Apple Card: One year later

How to get the Apple Card sign-up bonus

New Apple Card holders who open an account between Jan. 8 and Jan. 31, 2021 can earn $50 in Apple’s Daily Cash when they spend $50 using Apple Card with Apple Pay (where available) at Exxon and Mobil stations at the pump or at attached convenience stores in the U.S., within 30 days of the account opening. To pay at the pump with Apple Pay, you can use either the Exxon Mobil Rewards+ mobile app or contactless payment.

This month’s sign-up bonus from Apple is lower than its previous offer from Nike, but on par with the older offers from Walgreens and Panera Bread, both of which got you just $50 in Daily Cash back after a matching spend.

You can apply for the Apple Card from the Wallet app on your iPhone.

Should you apply for the Apple Card now?

If you have been considering applying for the Apple Card, it might be a good idea to do so this month, especially if you commute or drive often enough to spend $50 at gas stations in a month. While the card doesn’t always come with a sign-up bonus, new cardholders currently have a great chance to earn one.

Besides that, the Apple Card offers 3% cash back on Apple purchases, as well as 3% cash back when you use Apple Pay for Walgreens, Nike and Uber and Uber Eats purchases and at T-Mobile stores. Other Apple Pay purchases will earn you 2% in cash back. When you use the physical card, the cash back rate goes down to 1%.

However, the Apple Card might not make sense for everyone. The earning rate is good on Apple purchases, but if you’re looking for a primary cash back card to add to your wallet, there might be better options.

For example, with the Blue Cash Everyday® Card from American Express you can earn 3% cash back at U.S. supermarkets (on up to $6,000 per year in purchases, then 1%) and 2% cash back at U.S. gas stations and select U.S. department stores. All other purchases will get you 1% in cash back.

Another alternative is the Capital One Quicksilver Cash Rewards Credit Card, which earns you unlimited 1.5% cash back on every purchase and doesn’t have an annual fee. Plus, you only need to spend $500 in the first three months with the card to earn its $200 sign-up bonus.

There are quite a few other cards to look into. Shop around before you decide to take advantage of Apple’s offer. The sign-up bonus alone shouldn’t tempt you into signing up for a card that doesn’t align with your spending.

See related: Apple card credit score requirements and reasons for denial

Final thoughts

If you’re an Apple enthusiast and have been looking into the Apple Card for some time, now might be a good time to apply. The new limited-time sign-up offer gives you an opportunity to earn an easy sign-up bonus – something the card doesn’t normally have.

Source: creditcards.com

Amex Platinum temporarily adding $30 monthly PayPal credit

As 2020 ended, we left behind some challenging times – and some valuable credit card perks, like $20 streaming and mobile statement credits the on The Platinum Card® from American Express. (Both expired on Dec. 31, 2020.)

Fortunately, Amex hasn’t left Platinum cardmembers with nothing in the place of the expired perk. On the contrary, the issuer has added yet another exciting benefit.

See related: Amex adds Uber Eats Pass for Green, Gold and Platinum, Uber Cash credit on Gold

For a limited time, Amex Platinum cardholders will be able to enjoy a $30 monthly PayPal credit. While it’s less than the cumulative $40 in monthly streaming and mobile credits the issuer offered late last year, the perk still offers a great value and can be very versatile.

How the new PayPal credit works

Amex Platinum cardmembers will be able to use the new perk through June 30, 2021. No registration is required, and the credit will be applied automatically.

To use the perk, link your American Express Platinum card to your PayPal account and set it as the default payment method. Now, when you shop at eligible online merchants, you can select to check out via PayPal and get up to $30 credited back to you in your monthly statement. You’ll earn Membership Rewards points on this type of transactions as well.

Note, however, that peer-to-peer payments aren’t eligible for this offer, and you also can’t use it on gift card purchases or prepaid card reloads.

Receive up to $880 in credits with Amex Platinum in 2021

This perk is far from the first valuable credit offered on the Platinum card.

The credits on the Amex Platinum include annual Uber credits of up to $200 ($15 per month plus an extra $20 in December), an up to $200 airline-fee credit, up to $100 Saks Fifth Avenue credits per year, a $100 Global Entry or $85 TSA Precheck application fee credit every four years and a $100 hotel credit every time you book with The Hotel Collection.

The $30 monthly PayPal credit will be available through June – for up to $180 in PayPal credits in total.

The newly added limited-time perk brings the total credits you can receive from the Amex Platinum up to $880 in 2021 (if you only use the hotel credit once).

Considering the card’s annual fee is $550, you can get a lot of value from your Amex, especially if we get to see travel finally coming back this year.

Bottom line

The new $30 monthly PayPal credit on Amex Platinum may be less valuable than the discontinued $20 streaming and mobile statement credits, but it’s versatile and easy to use – PayPal checkout is available at thousands of online retailers, including major ones, such as Walmart, Target, Home Depot and others.

Coupled with other credits and perks the Amex Platinum offers, the new benefit drives up the value of the card, making it a travel credit card that’s worth it to have even in the times when travel is limited.

Source: creditcards.com

Why is a disputed collection account still on my credit report?

Reader Alesia writes, “I disputed a collection account from 2016 on my credit report with all three bureaus. Two of them deleted the account. However, Experian did not and the creditor has updated the date of collection to November 2020. Does this mean it will now stay on my report until 2027? And why did the two delete it and not the other? I still dispute the account. What can be done in these situations?”

When you don’t pay your credit card bill or loan payment on time, the creditor eventually declares it delinquent. And typically six months after the time you first stopped paying your dues, it will either write it off or send it to collections. If it’s the latter course of action, the delinquent account becomes a collection account.

Check out all the answers from our credit card experts.

Ask Poonkulali a question.

Each credit bureau has its own processes

Alesia, the three credit bureaus – Equifax, Experian and TransUnion – are all independent of each other and have their own processes. That’s why you rightly disputed the collection account with all three of them individually.

Equifax, one of the three credit bureaus, advises in online commentary, “It’s important to remember that disputing information with one credit bureau may not impact information on credit reports from the other two bureaus. Also, dispute procedures may not be the same at all bureaus, so be sure to follow the procedure with the bureau where you’re filing a dispute.”

When you file a dispute with a credit bureau, the bureau will contact the creditor and ask it to look into the information and check its records. The creditor then has a 30-day time frame to respond to the credit bureau with accurate information. If the creditor does not respond by this deadline, the credit bureau can then act on any information the consumer has provided to update the account or remove it.

It may be that the creditor did not get back to Experian in time with the relevant information, and the credit bureau did not make any changes on your account. Or it may not have responded to all three of them in time, and each then acted on its own information (each has its own input on your credit history) and processes in dealing with the account. It could also be that the lender did not provide the same input to all three credit bureaus, for whatever reason.

Also note that the coronavirus pandemic has upset these dispute investigation timelines, and the CFPB has even said it will be lenient in allowing the stretching of this time frame somewhat for lenders and credit bureaus that are looking into disputes.

See related: A collection agency is pursuing me for an old debt I don’t recognize. What to do?

Date of first delinquency is what’s important

Alesia, you report that the creditor updated the date of collection on the account with Experian to November 2020, whereas this collection account goes back to 2016. One important date related to delinquent accounts and collection accounts is the date of first delinquency.

This is the date on which the debt first went delinquent. The debt will be reported on your credit report for seven years after this date. In the case of a collection account, it will be on your credit report for seven years after it went into collection, which is typically six months after the date of first delinquency.

This means it will show on your credit report for up to seven-and-a-half years following the date of first delinquency. The creditor’s updating of the date of collection to November 2020 would mean there is a change to the date of last activity on the account. It does not change the actual date of first delinquency. So the debt will be reported through 2023 and not 2027.

See related: What should I do if my debt’s date of first delinquency is incorrectly reported?

You could initiate another dispute

The Fair Credit Reporting Act allows you to initiate a dispute with the credit reporting agency or the creditor that furnished the information to an agency if you don’t agree with what’s in your credit report. Alesia, you have gone through this process with all the credit bureaus, but you don’t agree with the result provided by one credit bureau.

You should contact the collection agency that provided the input to Experian to find out how this happened and see if you can sort out the issue. If there is a mistake it agrees to rectify with the credit bureau, don’t forget to get written input about the resolution for your records.

If that doesn’t work, you have the option of filing another dispute with Experian, and also with the furnisher of the information. Make sure to provide any additional and relevant information that could boost your case, such as updated credit reports from the other two credit bureaus.

If you don’t agree with the dispute resolution, you could also have a statement added to your credit report providing your account of the dispute.

Another course of action is to file a complaint with the CFPB, using its consumer complaint database. In case you don’t get a desirable outcome after all this, you  could even talk to a lawyer specializing in FCRA matters to get more detailed assistance on your particular situation.

Alesia, I hope the matter is ultimately resolved to your satisfaction!

Source: creditcards.com