Credit card companies love when you refer others to their credit cards. It allows them to give someone a credit card without having to advertise to get their business. Typically speaking, issuers give people a bonus when they are able to successfully refer someone to the card they have. American Express has its own unique system where you can send someone a referral link, and the person applying can then chose any credit card in American Express’ portfolio.
The entry level cards from American Express are seeing a negative change. The Green card has been reduced from 10,000 points to 5,000 points, the Everyday card went down from 10,000 to 7,500 points, and even the Blue Cash Everyday has dropped from $100 down to $75. For the time being, it looks like these are the only cards that are impacted.
This is a bigger deal than you would think. If you only happen to have one of the three cards impacted, this is a problem. Because of American Express’ referral system where the person applying can chose any card, they referrer is getting less than they could if they owned a different card. If you have multiple American Express cards, my recommendation would be to refer people to the higher offer first. Keep in mind, with any successful referrals, you will receive a 1099 form from American Express.
Has this reduction in referrals impacted you? Let us know below!