American Express Credit Card News

Hello! Have't seen you 'round here before! You may want to subscribe to my RSS feed so as to keep up to date with money saving tips and product reviews, or you may wish to view the main Mungo Money website for UK Credit Cards, Personal Loans and Savings Accounts. Thanks for visiting!

In a move claimed as “a significant first for the credit card industry”, the American Express tied up with American Home Mortgage Corp. to enable cardholders to pay their monthly mortgage dues using the American Express credit card. The new scheme, named the Express Rewards Mortgage Program will be available to American Express card holders who will have to pay a one time enrollment fee of $395 to American Home Mortgage. It is designed to reduce risks for cardholders seeking loans.

This program comes after an extensive survey was conducted by American Express. Most cardholders insisted on this facility as the missing feature of credit cards. The mortgage payment is, in most of the cases, the biggest payment of the month. If this is done with credit card American Express card members get the opportunity to secure precious credit points and avail cash back schemes or win airlines and hotel points. The new program will be offered only to customers with excellent credit history and reliability. By availing this program customers will be able to automatically charge the monthly mortgage payments to the American Express card, reducing the risk of missed payment. The customers will also have the added benefit of dedicated loan sales, processing group and many other home related offers. Customers will get $200 off on $1000 or more spent in Design Within Reach, $20 off on $100 at Linen’s Things, $15 off on $100 at Brookstone and so on. This program is available to all American Express consumers who want it for new loans or refinance of a prime loan from the American Home Mortgage.

The mortgage company will gain significant edge over their competitors as they will have access to a highly prosperous customer segment. After years of uninterrupted growth, the American Home Mortgage Corp had faced a sudden downslide, mainly due to upheavals in the subprime sector, one that deals with customers with weak credits. This led to a decrease in tax prices (down by 1.65%) and doubt among shareholders. This new venture would give provide a significant boost to the company. In fact it will be able to extend its trade amidst American Express premium high spending customers. For this reason, many other leading lending companies like IndyMac Bancorp Inc. of Pasadena, Calif have shown interest in this program.