Credit Card Bailout – Financial Situation of American Express
Posted on | November 11, 2008 | 2 Comments
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American Express is known for having great rewards by choosing its cardholders based on quality credit ratings. American Express is less likely to approve college students and individuals with bad credit when compared to the other credit card giants. Ultimately that has helped them in this subprime credit crisis, but just how much?
When breaking down the income after taxes (the bottom line profit) quarter versus quarter, American Express is definitely struggling. In quarter three of 2008, American Express profited $861 million versus $1,122 million in 2007, a 23.26% decline. Although this seems unsettling, it is nothing compared to Mastercard and Capital One which are both down over 50% when compared to last year. Mastercard has lost over $1 billion in the last half year alone!
Due to their strict approval policy for cardholders, American Express has held up much better in this struggling economy when compared to other credit card service companies. It will be interesting to see if they become even more strict with their cardholders or if they bend a few rules to try to make some extra cash. If you are an American Express cardholder, what would you like to see?
If this post interestes you, make sure to check out these also:
Credit Card Bailout – The Financial Situation of Mastercard
Credit Card Bailout – The Financial Situation of Capital One
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November 11th, 2008 @ 5:03 pm
[...] Denied.com | Credit Scores | Credit Reports | Apply for Credit wrote an interesting post today onHere’s a quick excerpt American Express is known for having great rewards by choosing its cardholders based on quality credit ratings. American Express is less likely to approve college students and individuals with bad credit when compared to the other credit card giants. Ultimately that has helped them in this subprime credit crisis, but just how much? When breaking down the income after taxes (the bottom line profit) quarter versus quarter, American Express is definitely struggling. In quarter three of 2008, A [...]
November 12th, 2008 @ 12:43 am
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