Let the balance chasing begin!

[drkaje]

Charge cards still have exposure limits. I'm considering one but first have to decide if another Amex really makes sense and also find out what the effect on utilization would be when it reports. I don't spend enough to make BlueCash worthwhile and feel PenFed is a better card for my spending habits. I really don't have any desire to change spending habits to suit any specific card at this point.

[The Livid One]

George, are you having MORE steak? Where are you..?

[Credit Matters]

Charge cards still have exposure limits. I'm considering one but first have to decide if another Amex really makes sense and also find out what the effect on utilization would be when it reports. I don't spend enough to make BlueCash worthwhile and feel PenFed is a better card for my spending habits. I really don't have any desire to change spending habits to suit any specific card at this point.

 

There is absolutely an exposure limit with a charge card. But what I keep harping on is the fact that people with credit cards -- and limits -- take a harder hit when it comes to FICO. That's because they rely on those reported limits to help them out with utilization. The charge-card customers simply don't have the problem.

 

It's surely true that our spending could get curtailed (because of a reduced spending limit) but we don't get the double whammy of also having our utilization hammered from Amex chasing the balance.

[Big Bear]

Balance chasing is the worst thing too. You're maxed out on the card all the way down.

 

Yep, not to mention Amex is 2 months behind in reporting. Paid off both of mine in early august....here we are late sept and it still shows both balances.

 

Looks like best of breed likes to keep your fico down for as long as possible.

 

They don't like fast changes, so they put a filter on your account for their benefit.

 

 

Have you used the card in the past month after the balance was PIF?

 

Want to bet how fast they report adverse action?

 

Knowing them, they'd report it before the consumer even finds out.

 

I was just wondering if they lag in their reporting even more than usual when they don't receive usage.

[Big Bear]

I am holding off with applying for more cards right now. But when I do, I am going for a CU, probably Penfed. Let's hope that this credit mess gets fixed soon.

 

Sounds like a smart plan, BOE.

 

+1 to BoE's plan. I'm thinking Patelco might be my next acquisition, but I don't see any applications being filled out any time in the near future.

 

good choice.

 

 

I'll submit mine when Marcus decides to go for that Discover card.

[Venusfan]

Sorry OP but maxing out your card to keep your limit?

[rpina1]

There is absolutely an exposure limit with a charge card.

 

This is true. My gold card has an exposure of around $7000. However, there are ways to go over exposure my manipulating the system.

 

Sorry OP but maxing out your card to keep your limit?

 

In a way yes. Many people were doing this last year to try to "keep" their limit. I was not maxing the card out so much as not paying high enough.

 

Example:

 

$3996 statement cut

$1136 spent during the month

$1200 in payments made during the month.

 

 

While I am paying quite a bit, I am not over paying my spend. So the balance always "carries" over. The interest paid was about $40, not horrible for a $4k balance. I was making about $30-40 a month in cash back reward, so it was a wash.

 

 

My plan of action is :

 

1. Continue to pay down balances (I've gone from 10 reporting balances to just 5 in 2 months)

2. No new accounts (unless it is NFCU or some really good BT offer)

3. Gear up for an NFCU card (the keeper) as soon as I get over 650

4. Balance transfer the AMEX balance away from AMEX to NFCU or something else if I don't get NFCU

5. Change strategy on AMEX to PIF gas/grocery card (no longer the every day card)

6. Never pay interest (ultimate goal)

 

I want the balance away from AMEX. Why? Because if they are going to take me all the way down to nothing, I would rather them do it NOW rather then later. If I BT to one of my other cards, I will pay more interest, but at least I will know what is going on.

Edited September 24, 2008 by rpina1

[Credit Matters]

I am holding off with applying for more cards right now. But when I do, I am going for a CU, probably Penfed. Let's hope that this credit mess gets fixed soon.

 

Sounds like a smart plan, BOE.

 

+1 to BoE's plan. I'm thinking Patelco might be my next acquisition, but I don't see any applications being filled out any time in the near future.

 

good choice.

 

 

I'll submit mine when Marcus decides to go for that Discover card.

 

I'm gonna hold you to that.

[Big Bear]

I am holding off with applying for more cards right now. But when I do, I am going for a CU, probably Penfed. Let's hope that this credit mess gets fixed soon.

 

Sounds like a smart plan, BOE.

 

+1 to BoE's plan. I'm thinking Patelco might be my next acquisition, but I don't see any applications being filled out any time in the near future.

 

good choice.

 

 

I'll submit mine when Marcus decides to go for that Discover card.

 

I'm gonna hold you to that.

 

 

I figured as much. But in the timeframe before hand I'll be adapting some Kona-like tendencies.

[Credit Matters]

I am holding off with applying for more cards right now. But when I do, I am going for a CU, probably Penfed. Let's hope that this credit mess gets fixed soon.

 

Sounds like a smart plan, BOE.

 

+1 to BoE's plan. I'm thinking Patelco might be my next acquisition, but I don't see any applications being filled out any time in the near future.

 

good choice.

 

 

I'll submit mine when Marcus decides to go for that Discover card.

 

I'm gonna hold you to that.

 

 

I figured as much. But in the timeframe before hand I'll be adapting some Kona-like tendencies.

 

You could be applying this week. Ha!

[Big Bear]

You could be applying this week. Ha!

 

Doubtful, but just in case I need to check out the EX inquiries.

[Credit Matters]

You could be applying this week. Ha!

 

Doubtful, but just in case I need to check out the EX inquiries.

 

Mine is a TU pull. Ha! 0 inquiries there for me.

[Big Bear]

You could be applying this week. Ha!

 

Doubtful, but just in case I need to check out the EX inquiries.

 

Mine is a TU pull. Ha! 0 inquiries there for me.

 

Not fair!!

[LustfortheMoment]

Once I pay off the card, I will be converting to a PIF strategy. Without having a larger limit available, I will no longer be tempted to over use the card.

 

Actually, PIF is a good strategy for all of one's cards regardless of your limits............

 

I'm sure that AMEX cited some rationale for your CLD. Please share it with us if you so choose.

 

Good Luck,

[Big Bear]

Once I pay off the card, I will be converting to a PIF strategy. Without having a larger limit available, I will no longer be tempted to over use the card.

 

Actually, PIF is a good strategy for all of one's cards regardless of your limits............

 

I'm sure that AMEX cited some rationale for your CLD. Please share it with us if you so choose.

 

Good Luck,

 

"The sky was blue yesterday" doesn't count as a rational excuse.

 

 

Seriously though, I would like to know what they have to say about OP's handling of the card (and other items on the reports that they like to review).

[drkaje]

Some parameter in their risk assessment matrix may have changed that had nothing to do with OP's FICO score. Could be something like home prices dropping in the neighborhood or the price of tea changing in China. Amex has their own scoring system and FICO really isn't a huge part of it. Does it suck? Yes it does. People here are becoming more educated about Amex, yet increasingly leery. In the long run, our scoring system will probably have to adjust too.

 

Mine may get a CLD eventually but DGF asked the auto CLIs to be stopped almost a year ago. The card is fine but I haven't made a charge on it since Dec and don't even have on-line access set up.

[Big-Daddy]

Summary;

 

Amex = best of breed for chargecard perks, worst of worst for revolving a balance.

 

They know when they have you trapped in a box, and they'll keep you there if you let them.

 

You could easily change that to "charge card accounts period" IMO

Specifically?

 

Are you suggesting all charge cards across the board or strictly with Amex?

 

I'm curious on your opinion on this TheChosenOne.

[rpina1]

My initial CLD was result of a new collection popping up.

 

My util also went up after christmas time and has steadily gone up since. It peaked at 54% overall. I don't blame them for being nervous.

 

In talking with the credit department, they were not really concerned as much with the util and other things as much as the collection. She wanted me to fax in proof that it was paid and they would consider restoring the limit. The CLD was only $200 so it really wasn't worth fighting for at the time. The collection remains open at this time.

 

I'm sure I will get another CLD letter like last time, so I will compare the 2 (I still have the other). I'll post the results. I have nothing to hide.

 

At this point I would much rather have a charge card. I applied for one, and as I posted in another thread, one of the listed "reasons" for denial was "experience with customers of your spending profile" or something similar.

 

Ironically I keep getting offered the starwood AMEX card every time I log in. Riiiiiight.

Edited September 24, 2008 by rpina1

[Seabee]

Summary;

 

Amex = best of breed for chargecard perks, worst of worst for revolving a balance.

 

They know when they have you trapped in a box, and they'll keep you there if you let them.

 

I've been reading the advice of not to carry a balance with AMEX since I joined and am surprised every time I hear about someone carrying a balance with them. It's been clear all along that they have their roots in charge card products, and expect their customers to treat credit cards as though they're charge cards.

 

When you PIF, you maintain control. There isn't a whole lot they can do to you. When you carry a balance you leave yourself open to their shenanigans.

[Credit Matters]

You could be applying this week. Ha!

 

Doubtful, but just in case I need to check out the EX inquiries.

 

Mine is a TU pull. Ha! 0 inquiries there for me.

 

Not fair!!

 

haha.

[GEORGE]

AMEX did their first cut in february. Since then, I had decided to keep my balance high, to "avoid" further balance chasing.

 

It's been a while, and I really don't want to carry that much balance anymore. Even if it means losing the limit, I have been paying more then usual.

 

I normally keep my balance around $4000, but took it down to $3700 on my last payment. As expected, my limit was cut to $3900.

 

I expect this will continue, and I am no longer worried about it. As long as they don't close the card or go lower then my original limit ($1000). I am currently seeking a balance transfer to another card.

 

Once I pay off the card, I will be converting to a PIF strategy. Without having a larger limit available, I will no longer be tempted to over use the card.

 

AMEX had claimed that they will only do this every 6 months, which we all know isn't true. We will see what happens next month.

...and I was supposed to take my 96.1% CLD with a GUARANTEE that the BEST OF BREED would never cut me more???

 

BALANCE CHASING IS JUST WRONG NO MATTER IF IT IS THEIR MONEY or NOT

 

Are you going to DUMP THEM before you lose more???

[GEORGE]

George, are you having MORE steak? Where are you..?

WORK...

[LustfortheMoment]

When you PIF, you maintain control. There isn't a whole lot they can do to you.

 

 

+1 ................ GREAT advice for ALL CC USERS...............

[Credit Matters]

Summary;

 

Amex = best of breed for chargecard perks, worst of worst for revolving a balance.

 

They know when they have you trapped in a box, and they'll keep you there if you let them.

 

I've been reading the advice of not to carry a balance with AMEX since I joined and am surprised every time I hear about someone carrying a balance with them. It's been clear all along that they have their roots in charge card products, and expect their customers to treat credit cards as though they're charge cards.

 

When you PIF, you maintain control. There isn't a whole lot they can do to you. When you carry a balance you leave yourself open to their shenanigans.

 

I wrote a fairly lengthy story about my American Express application. I argued that Amex's charge roots militated against me applying for a credit card.

 

American Express -- The Game Plan

[Credit Matters]

When you PIF, you maintain control. There isn't a whole lot they can do to you.

 

 

+1 ................ GREAT advice for ALL CC USERS...............

 

Totally agree. Took me 18 years to figure that out.