Amex launches Point Target tool to help cardholders and others improve their credit

American Express has announced a new tool to help consumers improve their credit scores at a time when improving your financial health is crucial.

Score Goals is a personalized credit score tracker folded under American Express’ MyCredit Guide, which provides free VantageScore and TransUnion credit score reports.

“I think credit scores are the top criteria of concern for many right now because of the personal financial implications of the pandemic,” said Ted Rossman, industry analyst at Bankrate. A lot of people are facing disruption to their income and habits. That uncertainty makes people worry about how they will meet their financial obligations. ”

Amex launches Score Goals tool to help cardmembers and others improve their credit
Amex launches Score Goals tool to help cardmembers and others improve their credit

With a Point Goal, you can build a personalized credit score improvement plan by selecting the credit score you’re striving for. From there, you can track and see your score updated weekly every time you log in to your online account.

“We know that many consumers pay special attention to their financial health during this time. As we continue to innovate to provide consumers with new tools and resources that support their financial needs, we’ve come up with a Score Target to help consumers manage and accomplish their credit score goals — both large and small, “Kunal Madhok, vice president and head of product, said and acquired the U.S. consumer loan card at American Express, in a news release.

Amex Point Objectives: Specifics

Like the MyCredit Guide, Score Goals uses TransUnion’s VantageScore 3.0 credit scoring model.

The Score Goal gives a time frame of six, 12, 18, and 24 months, through which you can work to achieve your new credit score. According to Amex’s website, your payment plan can include up to four categories, including “Payment Activity,” “Utilized Credit Percentage,” “Debt and Balance,” and “New/Recent Credit.”

Most importantly, you don’t need to be a cardholder to use the MyCredit Guide or Point Goals — that is, you’re not required to own an American Express credit card.

What myCredit Credit Guide and Amex’s Score Goals can do for you

Rossman said: “The Point Target tool is especially useful for those who are new to credit and who are rebuilding their credit after an earlier mistake.

With high unemployment and tighter regulations on loans, balance transfers, and credit card approvals, improving your credit score is key to ensuring you can sign up for financial products when needed.

In particular, for credit cards, higher credit scores can lead to greater reward structures and benefits. For example, if you’re in need of a balance transfer credit card, then a credit score from good to excellent can give you access to longer 0% introductory APR offers along with generous rewards and no annual fees, while lower levels of balance transfer cards can move to a shorter initial balance transfer period, There is no reward structure and rich fees.

“Six months ago, a credit score of about 670 or higher probably qualified you for most credit cards,” he says. “Now, you may need at least 700, maybe even 740, to feel more comfortable. If your credit score is at 600 or low 700, then it’s especially important that you try to increase that credit score.”

Free credit scoring tools: How does Amex benefit?

According to Rossman, Amex’s Point Target tool acts as a means of driving customer transformation and is a way to strengthen existing customer relationships.

“If they can help a non-customer improve their score, then they will likely cultivate a win-win relationship with that person,” Rossman said. And helping existing customers improve their credit is also good customer relations and can benefit Amex financially through increased loyalty, higher spending and the ability to get a better payback.”

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