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rackt3

Amex keeps lowering my CL !!!

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When I opened my Amex blue account 6 years ago, I was making about half of what I'm making now income-wise. Yet, my CL has been steadily declining. Not to go into detail, I had racked up the charges, but I've never been in over my head and have never gone close to the limit. My wife and I would like to move to a new house next year, so we've been aggressively paying off all credit card debt and making pretty good progress.

 

Currently, we've paying about $2,500/m in CC payments (about $800/m goes to this amex card). In light of that, it seems AMEX has just been steadily reclaiming the CL---this is my 3rd reduction and it's been about $1600 at a time! I'm really not worried about the limit since I don't plan to ever go that high anymore, but what about my credit score?

 

One of the main reasons we're paying all this off is to improve the revolving debt issues, thereby increasing the FICO scores to ge the best rates. Is there anything I can do here? Anyone else having the same issues with disappearing credit limits? Thankfully, AMEX has kept my rate at 6.9%. I've never been late, and I have only one 30day late on my report which is about 3years old (not that it matters, but fwiw the 30-day late is wrong and I'm in the process of getting a lawyer since I have proof).

Edited by rackt3

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Many have reported that Amex has done some weird thing latley, number 1# has been F/R's.....have you called them and

 

asked why they are doing this?

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My guess is that they see you as a liability for carrying large balances for a long time...so Amex saw your recent paying down of balances as a good opportunity to minimize their risk. From what I understand, Amex still prefers people that PIF at the end of every month.

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I would BT them immediately. Get a new card with a 0% promo and you'll be in a better position.

They should be sending AA letters each decrease...what is the reasoning listed on them?

You can call or write, but I wouldn't allow them to keep screwing with your utilization.

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When I opened my Amex blue account 6 years ago, I was making about half of what I'm making now income-wise. Yet, my CL has been steadily declining. Not to go into detail, I had racked up the charges, but I've never been in over my head and have never gone close to the limit. My wife and I would like to move to a new house next year, so we've been aggressively paying off all credit card debt and making pretty good progress.

 

Currently, we've paying about $2,500/m in CC payments (about $800/m goes to this amex card). In light of that, it seems AMEX has just been steadily reclaiming the CL---this is my 3rd reduction and it's been about $1600 at a time! I'm really not worried about the limit since I don't plan to ever go that high anymore, but what about my credit score?

 

One of the main reasons we're paying all this off is to improve the revolving debt issues, thereby increasing the FICO scores to ge the best rates. Is there anything I can do here? Anyone else having the same issues with disappearing credit limits? Thankfully, AMEX has kept my rate at 6.9%. I've never been late, and I have only one 30day late on my report which is about 3years old (not that it matters, but fwiw the 30-day late is wrong and I'm in the process of getting a lawyer since I have proof).

 

The issue is probably your utilization. Twenty-five hundred/month in cc payments means your balances are pretty high and also sounds like your amex balance is high so they are concerned about your ability to pay. When you get your total balances to about 30% or less of your available credit - you will probably drop off their radar - and your ficos will go up.

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Well, given my goal here, I'd rather not open a new account of close this AMEX card. Last time I called them, they simply told me it's because of my utilization. With how we're currently going, we'll have $0 or very little in credit card balance by early next year, so I'm not sure that I should get a new card now simply to pay the amex down right away. Heck at this rate, they might see the zero balance as an opportunity to close the account (now THAT would suck!)

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The issue is probably your utilization. Twenty-five hundred/month in cc payments means your balances are pretty high and also sounds like your amex balance is high so they are concerned about your ability to pay. When you get your total balances to about 30% or less of your available credit - you will probably drop off their radar - and your ficos will go up.
Yeah, my utilization's at around 48% (across all cards), but AMEX is the one I was using the most. With purchases and balance transfers, my amex was at around 90% at one point... but thanks to them continuing to drop my CL, they're essentially keeping the utilization high :ph34r: . Goal is to get total revolving credit utilization down to 0%-2% which is why we're paying as aggressively as we are. Hope I fall off their radar before AMEX takes everything! Edited by rackt3

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the old chase the balance act....instead of closing they lower till you have nothing left....then close...

 

BT the card and tell um to shove it up their pie hole......request it be closed my consumer...

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my utilization's at around 48% (across all cards)

With purchases and balance transfers, my amex was at around 90% at one point...

seehearspeak.gif

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the old chase the balance act....instead of closing they lower till you have nothing left....then close...

 

BT the card and tell um to shove it up their pie hole......request it be closed my consumer...

nono.gif

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When I opened my Amex blue account 6 years ago, I was making about half of what I'm making now income-wise. Yet, my CL has been steadily declining. Not to go into detail, I had racked up the charges, but I've never been in over my head and have never gone close to the limit. My wife and I would like to move to a new house next year, so we've been aggressively paying off all credit card debt and making pretty good progress.

 

Currently, we've paying about $2,500/m in CC payments (about $800/m goes to this amex card). In light of that, it seems AMEX has just been steadily reclaiming the CL---this is my 3rd reduction and it's been about $1600 at a time! I'm really not worried about the limit since I don't plan to ever go that high anymore, but what about my credit score?

 

One of the main reasons we're paying all this off is to improve the revolving debt issues, thereby increasing the FICO scores to ge the best rates. Is there anything I can do here? Anyone else having the same issues with disappearing credit limits? Thankfully, AMEX has kept my rate at 6.9%. I've never been late, and I have only one 30day late on my report which is about 3years old (not that it matters, but fwiw the 30-day late is wrong and I'm in the process of getting a lawyer since I have proof).

CLOSE IT NOW BEFORE IT ENDS UP AT $1,000 or $500

 

(ME)

 

96.1% CLD CLOSE TO $200,000 WORTH

 

(in one day)

 

I took it down the rest of the way the day I found out about it

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My guess is that they see you as a liability for carrying large balances for a long time...so Amex saw your recent paying down of balances as a good opportunity to minimize their risk. From what I understand, Amex still prefers people that PIF at the end of every month.

BUT THEY LOVE BT's

 

(as long as you don't pay JUST minimum)

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I agree with GEORGE. If possible then PIF and close it. Otherwise, I suspect Amex will continue to lower your CR as you continue paying it down.

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I agree with GEORGE. If possible then PIF and close it. Otherwise, I suspect Amex will continue to lower your CR as you continue paying it down.

At least it will STICK at the current credit limit

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I think a lot of banks will start to take steps to tighten credit availability. Most will be more subtle than Amex, though. We're in a big credit crunch now - businesses are having a big problem getting credit.

 

There were no junk bond issuances this past week. None at all. There were no international dollar bond issuances either. How often does that happen? Hardly ever.

 

WSJ:

 

The big chill gripping global credit markets has caused 46 leveraged financing deals around the world to be pulled since June 22, representing more than $60 billion in funding that companies had planned for mergers and acquisitions. The number of deals pulled last year: zero.

 

Anyway, I think what we're seeing is that Amex believes they are overexposed to risk at this time.

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Ugh! Everyone keeps saying to PIF and close it... and now I'm really thinking about it. I've had this card for almost 7 years now, it's been fixed at 6.9% the whole time, and I use it a lot at Costco (both for personal and business expenses) since it's Blue Cash. I think what I'll do is, I'll continue to aggressively pay it down, and if they lower the balance one more time, I think I just might do it.

 

Gonna be tough though, given that my credit score might take a hit.

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Is the moral of this story to never have high util on an AMEX card and if you do pay it down fast?

 

No CC issuer likes high util, it makes them all nervous, but some seem to not take adverse action as fast as AMEX. Most seem to just let you carry it until the next time of card renewal and then close out the account (like the BofA card I used to have). And some of the subprime issuers such as Cap 1 and HSBC don't seem to care at all and just collect interest on the cards and keep renewing them (at least my experience when I had high util and an Orchard and Cap 1 seemed to indicate).

 

This action makes me leary of AMEX even more than just the F/R action I have seen of late.

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Ugh! Everyone keeps saying to PIF and close it... and now I'm really thinking about it. I've had this card for almost 7 years now, it's been fixed at 6.9% the whole time, and I use it a lot at Costco (both for personal and business expenses) since it's Blue Cash. I think what I'll do is, I'll continue to aggressively pay it down, and if they lower the balance one more time, I think I just might do it.

 

Gonna be tough though, given that my credit score might take a hit.

 

 

i dont think amex likes that you've had the BT rate for so long...its their way of saying get the hell outta here...were not making enough off you...

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My guess is that they see you as a liability for carrying large balances for a long time...so Amex saw your recent paying down of balances as a good opportunity to minimize their risk. From what I understand, Amex still prefers people that PIF at the end of every month.

BUT THEY LOVE BT's

 

(as long as you don't pay JUST minimum)

 

How much is a good amount to pay over the min? Just curious. My AMEX is at $22.5K and I'm entertaining doing a BT down the road

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How much is a good amount to pay over the min? Just curious. My AMEX is at $22.5K and I'm entertaining doing a BT down the road

If you BT $5000 and your minimum payment is $150, Amex would probably be happiest if you paid about $4850 over the minimum. :D

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i dont think amex likes that you've had the BT rate for so long...its their way of saying get the hell outta here...were not making enough off you...

Well, while BT was most of my balance, I've used it a lot for purchases as well. As I mentioned earlier, I primarily use it a lot at Costco both for personal and business expenses. The business expenses take up the bulk of it though, but I do it since I get cash back.

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I understand these companies get nervous. But this is all so silly, dont give someone a 50K card if you dont want them use all 50K. It just seem so silly really that you cant use a credit line they issue to you. I thought an approval meant we feel comfortable that you can pay back X amount for your credit history and income.

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