AmEx Card

Day 29: American Express Card

Why is Hermes the FTD florist guy
and the AmEx guy?

I gave my credit score a ding by giving up my Costco American Express card. Huh. One would think fewer credit cards would make one a better credit risk. Not to mention holding a steady job, paying your taxes and making no late payments. But there's alchemy at work here. Rich's credit score is measurably better than mine, even though our finances have been combined for twenty years.

Even so, according to the Federal Reserve, "Overall, research...has consistently indicated that credit reporting, despite any limitations that it may have, provides an effective assessment of the relative risk posed by prospective borrowers." (1)

We got rid of the AmEx because we like to have only one credit card plus our ATM. Every bill that can be paid from the credit card goes on it, and the full balance of our credit card is automatically deducted from our checking account each month. Lots of frequent flier miles, and no time or postage wasted paying bills. The second card was intended as a gas card for Emma to keep in her wallet, but it just adds complications and makes my wallet harder to close.

Goodbye, Hermes.