American Express pulling back on credit card approvals

One of the harsh realities of the ongoing economic challenges we face today is that it is becoming harder to get access to credit for some people.

And now we know that American Express is slowing down credit card approvals because they are worried about potential economic downturns coming in the future.

At a virtual investor conference on Wednesday, American Express Chief Financial Officer Jeff Campbell, questioned where the economy will go over the next 6 to 12 months since many businesses (including Amex) have chosen to not lay off employees.

American Express is not sure what consumers’ financial health and employment trends will look like in the future and until then, it may be much more difficult to get approved for American Express cards than in recent memory.

So in the next couple of months, if you are a borderline candidate meaning that you have a questionable credit profile and perhaps income on the lower side then I would avoid applying for American Express credit cards.

You could still probably have luck with other credit card issuers but just be aware that things may be tougher when it comes to approvals right now.

You would probably be better off trying to repair your credit score and build it up.

Consider credit cards that are easier to get like secured credit cards or those specifically designed for those with lower credit.

H/T Bloomberg