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Upmarket credit brand American Express is moving into the downmarket of cards with annual fees.Cards with annual fees may sound like they’re for wealthy people, but they often come with lower credit lines and worse benefits, and they may be the only option for people with bad credit.
CEO Ken Chenault gave some details yesterday in a investor conference, reports MarketWatch’s Andrew Johnson reports.
Last year, the company rolled out the Blue Cash Preferred card, which packs rewards from 6 per cent cash back at supermarkets to 3 per cent cash back at gas stations and department stores.
On the plus side, the Blue Cash card throws in $150 for holders who spend $1,000 in the first three months, which renders the $75 annual fee a non-issue.
Conversely, so-so rewards like the Blue Cash Everyday card’s should put off consumers who might find a better deal elsewhere, says CardHub.com‘s CEO Odysseas Papadimitrious.
AmEx will not disclose whether it plans to roll out more cards with annual fees, but spokeswoman Desiree Fish says launching the Blue Cash Preferred and relaunching Blue Cash are in line with its strategy to “focus less on our absolute number of cards and more on the quality of the spend capacity of our new card members.”
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