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AMEX sent me an email today


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Wow - even though I have read all of these posts about AMEX CLD's, my 10k Blue CL was fine. I received an email this morning with the subject:

 

Important Account Status: Notice of Credit Line Reduction.

 

AMEX took me from the 10k CL to a CL of $1600! I have had the card for about 18 months, I pay in full every month and use it for Costco purchases, CS and promos (last month they offered a $30 statement credit if I shopped at certain merchants).

 

So much for Best in Breed :lol:EX FICO is 701.

 

On a side note, I have seen a few posts on here where people have recently taken out a HELOC or used their HELOC and received AA from their credit card companies. I took out a decent sized HELOC a few months ago that just started reporting and I am assuming this spooked AMEX. Although I have not used the HELOC and have no plans to use it - I did want to diversify my credit portfolio, however it looks like my plan to diversify may have caused the CLD.

Edited by sara21200
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Wow - even though I have read all of these posts about AMEX CLD's, my 10k Blue CL was fine. I received an email this morning with the subject:

 

Important Account Status: Notice of Credit Line Reduction.

 

AMEX took me from the 10k CL to a CL of $1600! I have had the card for about 18 months, I pay in full every month and use it for Costco purchases, CS and promos (last month they offered a $30 statement credit if I shopped at certain merchants).

 

So much for Best in Breed :lol:EX FICO is 701.

 

On a side note, I have seen a few posts on here where people have recently taken out a HELOC or used their HELOC and received AA from their credit card companies. I took out a decent sized HELOC a few months ago that just started reporting and I am assuming this spooked AMEX. Although I have not used the HELOC and have no plans to use it - I did want to diversify my credit portfolio, however it looks like my plan to diversify may have caused the CLD.

 

Thanks for the update, Sara. Very possible the HELOC was the trigger. But you never know with Amex. You'll be getting a letter soon enough. Let us know what it says.

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Wow - even though I have read all of these posts about AMEX CLD's, my 10k Blue CL was fine. I received an email this morning with the subject:

 

Important Account Status: Notice of Credit Line Reduction.

 

AMEX took me from the 10k CL to a CL of $1600! I have had the card for about 18 months, I pay in full every month and use it for Costco purchases, CS and promos (last month they offered a $30 statement credit if I shopped at certain merchants).

 

So much for Best in Breed :clapping:EX FICO is 701.

 

On a side note, I have seen a few posts on here where people have recently taken out a HELOC or used their HELOC and received AA from their credit card companies. I took out a decent sized HELOC a few months ago that just started reporting and I am assuming this spooked AMEX. Although I have not used the HELOC and have no plans to use it - I did want to diversify my credit portfolio, however it looks like my plan to diversify may have caused the CLD.

WELCOME TO THE CLD CLUB

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Sorry to hear this OP. I'm not sure but I think you're not alone with this type of thing :clapping: . Interestingly enough though, I never receieved any kind of formal letter from AMEX stating that they were reducing my CL and it's been almost 2 months. All I got was an email and that was the end of it.

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I doubt that an untapped new HELOC line was the cause. Think about it: 1)Your capacity to borrow at a rate much lower than AMEX offers would make you LESS prone to run up an AMEX balance, 2) With banks being so cautious now about lending, assignment of a new HELOC line shows that you're a very creditworthy customer............

 

I don't have a primary mortgage, but I carry a large HELOC line which has not caused AA from AMEX. Please share their rationale when you receive written notification.

 

Good Luck,

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I doubt that an untapped new HELOC line was the cause. Think about it: 1)Your capacity to borrow at a rate much lower than AMEX offers would make you LESS prone to run up an AMEX balance, 2) With banks being so cautious now about lending, assignment of a new HELOC line shows that you're a very creditworthy customer............

 

I don't have a primary mortgage, but I carry a large HELOC line which has not caused AA from AMEX. Please share their rationale when you receive written notification.

 

Good Luck,

I have no doubt it was the reason, especially if she picked the wrong lender - one who lends to people who stiff amex at a higher rate than most people stiff amex. (which is probably every mortgage lender)

 

As for your reason #1 - looking at it from the other prospective, they might think she'll run up the amex then pay it off with the heloc and eventually run out of funds and BK amex. plus there is no guarantee she has a lower rate on it. #2 - not all lenders are cautious.

 

amex is running scared - new accounts, too many cards in use, along with the wrong mortgage lender are all CLD triggers.

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#1 - looking at it from the other prospective, they might think she'll run up the amex then pay it off with the heloc and eventually run out of funds and BK amex.

 

That's true, but they certainly would be able to monitor both her AMEX balance and her HELOC withdrawals before needing to take any AA.

 

As for the rate, I hope that she got Prime minus 1% which is widely available. Even at Prime, her rate would be much lower than AMEX's.

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I doubt that an untapped new HELOC line was the cause. Think about it: 1)Your capacity to borrow at a rate much lower than AMEX offers would make you LESS prone to run up an AMEX balance, 2) With banks being so cautious now about lending, assignment of a new HELOC line shows that you're a very creditworthy customer............

 

I don't have a primary mortgage, but I carry a large HELOC line which has not caused AA from AMEX. Please share their rationale when you receive written notification.

 

Good Luck,

I have no doubt it was the reason, especially if she picked the wrong lender - one who lends to people who stiff amex at a higher rate than most people stiff amex. (which is probably every mortgage lender)

 

As for your reason #1 - looking at it from the other prospective, they might think she'll run up the amex then pay it off with the heloc and eventually run out of funds and BK amex. plus there is no guarantee she has a lower rate on it. #2 - not all lenders are cautious.

 

amex is running scared - new accounts, too many cards in use, along with the wrong mortgage lender are all CLD triggers.

 

My mortgage lenders aren't considered "wrong" lenders, however I do have a VERY high amount of available credit with my credit card companies.

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My mortgage lenders aren't considered "wrong" lenders, however I do have a VERY high amount of available credit with my credit card companies.

I think every lender is the wrong lender but I forgot to ask them which mortgage lenders are on their safe list. If you ever get your AA letter (or call and ask) I bet they mention the mortgage/heloc as a negative.

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Got me too after I did a home refi. My whole credit file snowballed and everyone of my creditors lowered my limits. In my case, not bad... I can't use all that credit and am having problems meeting payments. Not late yet, but I could be in a twitch of an eye... Still, I've never had all my creditors snowball on me and reduce my limits. Never in 15 years of having credit... Watch your other creditors!

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Got me too after I did a home refi. My whole credit file snowballed and everyone of my creditors lowered my limits. In my case, not bad... I can't use all that credit and am having problems meeting payments. Not late yet, but I could be in a twitch of an eye... Still, I've never had all my creditors snowball on me and reduce my limits. Never in 15 years of having credit... Watch your other creditors!

IN THE REAL WORLD...REDUCING CREDIT LIMITS IS NOT A GOOD THING

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Got me too after I did a home refi. My whole credit file snowballed and everyone of my creditors lowered my limits. In my case, not bad... I can't use all that credit and am having problems meeting payments. Not late yet, but I could be in a twitch of an eye... Still, I've never had all my creditors snowball on me and reduce my limits. Never in 15 years of having credit... Watch your other creditors!

IN THE REAL WORLD...REDUCING CREDIT LIMITS IS NOT A GOOD THING

 

 

The REAL WORLD (as you so aptly put it) has changed...at least for the time being...and probably into the foreseeable future as well. The days of super low interest rates for everyone, easy credit, and ultra high limits are gone, people.

 

There will still be those who can get these things, but it will be the most credit worthy people (which probably equates to those who don't really need it).

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My DH just got this email also this am. Only on 1 of his. We don't have a HELOC at all.

 

We are in the process of building a new house & have been paying stuff down before they lock in our rate in 1 1/2 to 2 months. Everytime we pay his down with $1000 or more open they cut the limit. This is the 2nd time in 4 months they have done it. Sad since we have paid off all of DH but these 2 amex & 2 usaa & his scores have gone up 30 pts also.

 

These will be paid in full as soon as we are in the house & settled.

 

When DH called then when it happened before they told him it was because of the economy. Whatever, we have had for 3 yrs never late always send double or more the min.

 

 

Michelle

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Got me too after I did a home refi. My whole credit file snowballed and everyone of my creditors lowered my limits. In my case, not bad... I can't use all that credit and am having problems meeting payments. Not late yet, but I could be in a twitch of an eye... Still, I've never had all my creditors snowball on me and reduce my limits. Never in 15 years of having credit... Watch your other creditors!

Wow! Do you mind giving the name of the creditors and how much they cut your lines?

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