NEW YORKâIn a move that bucks the general trend of lowering card rates, American Express recently increased interest rates on some of its credit card accounts by an average of 2.5 percentage points, the company stated.
The Associated Press reported that American Express spokeswoman Elizabeth Crosta declined to say how many of its roughly 42 million cards would be affected. But she said it was a "small percentage" of its customers.
American Express had been charging a lower interest rate, as much as 3.25 percentage points, on its credit cards compared with rates its competitors charge for customers with similar credit scores, Crosta told the AP. The rate increase was authorized after an analysis showed the difference.
Customers affected will be notified and will have the option to keep the card at the higher interest rate or cancel their cards, the company stated. The new interest rate only affects new purchases and balance transfers.