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yummysbakery

Ax credit limit decrease

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So I just received an email from ax stating they decreased my delta ax card from 10000 to 5000. This card has only been opened 6 months and never used. I have two other ax cards since 1993 which I use heavily and pay off or down to less than 1% every month. Called the number and they read a scripted message and then asked for proof of income I.e.paystub not an irs form and only then would they reconsider. Shaking my head here deciding if I'm going to bother with it. Won't hurt my utilization any but wish they would just give a justification for their action!

 

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give amex proof of income and always PIF not just "down to..."

 

pay stubs is a better option than 4506-t as it shows real time income not 8 to 12 month lagged.

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Sorry OP. Anytime you apply to Amex be prepared to answer for a dreadful 4506-T if ask. Fortunately for you, they only asked you for paystub instead.

Edited by MP80

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Exactly how much "bother" is it to provide a pay stub to a company that's extending you thousands of dollars in credit?

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Maybe bother wasn't the right word. The fact that they decreased the cli without any reason other than they can doesn't sit right with me. I just want a justification. How hard is it to say you are not using the card, we are concerned about too much exposure, etc. The fact is nothing has changed since I opened the card not my spending habits not my income not my utilization. Well there has been one change my credit scores have increased due to my accounts aging.

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1 hour ago, yummysbakery said:

Maybe bother wasn't the right word. The fact that they decreased the cli without any reason other than they can doesn't sit right with me. I just want a justification. How hard is it to say you are not using the card, we are concerned about too much exposure, etc. The fact is nothing has changed since I opened the card not my spending habits not my income not my utilization. Well there has been one change my credit scores have increased due to my accounts aging.

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Most large credit issuers use algorithms to monitor accounts and make credit decisions.  

 

It's probably a combo of several reasons, some of which may have more to do with their forecast of credit markets than what's on your credit report or your spending history.

 

Bottom line, it's their money.  If you want to tap into it, comply.  If you don't, ignorte the request.

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The "never used" is a big key here, especially since we are not talking about a card used once at receipt and THEN sock-drawered.  Instead, we are talking about a card that has never seen the purchase daylight.  AXP likes use and LOTS of it.  They have no interest in the customer that won't use their card.  That $5K in limit exposure can be put to better use with actual customers. 

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You gotta use it.  They probably could have just closed it, but cut you a break.

 

Put a tiny auto bill on it, for Netflix or something, then autopay.  Problem solved.

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In hind sight you are probably right but I was saving this to use this Jan for an around the world cruise so I could benefit from the perks. Now since the annual fee will start in november if they don't raise it back I'll probably just cancel it. I did submit my pay stub today now I just wait and see.

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23 minutes ago, yummysbakery said:

In hind sight you are probably right but I was saving this to use this Jan for an around the world cruise so I could benefit from the perks. Now since the annual fee will start in november if they don't raise it back I'll probably just cancel it. I did submit my pay stub today now I just wait and see.

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Were you ineligible for a sign-up bonus for this card?

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On 7/16/2018 at 7:48 PM, insolent1 said:

A paystub? I haven't seen a physical paystub since the 20th century and a paper pay check for a decade before that. 

 

Are you familiar with PDFs?

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On 7/16/2018 at 6:02 AM, cv91915 said:

Exactly how much "bother" is it to provide a pay stub to a company that's extending you thousands of dollars in credit?

 

It's not a bother at all. It's a choice. Pay stubs, tax returns, w2's, etc, are not standard industry practice for credit card issuers. As such, I would take my business elsewhere. That's just me. There is nothing that AMEX can offer me that the competition cannot also offer.

 

Frankly, they need us (consumers) a lot more then we need them and unless or until proof of income is required by law to be provided to credit card issuers, there is no need to provide it unless AMEX is offering something that is of value that no one else can. 

 

OP will need to make his/her decision here.

 

 

 

 

 

 

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24 minutes ago, NorCalR1 said:

 

It's not a bother at all. It's a choice. Pay stubs, tax returns, w2's, etc, are not standard industry practice for credit card issuers. As such, I would take my business elsewhere. That's just me. There is nothing that AMEX can offer me that the competition cannot also offer.

 

Frankly, they need us (consumers) a lot more then we need them and unless or until proof of income is required by law to be provided to credit card issuers, there is no need to provide it unless AMEX is offering something that is of value that no one else can. 

 

OP will need to make his/her decision here.

 

 

 

 

 

 

That's would seem like a logical thought process if you've lied about your income.

Edited by cv91915

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Actually I have both lol. Old school company with no direct deposit. Paper check issued biweekly with computer print out of deductions. So it was no problem to email a photo of them.


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3 hours ago, cv91915 said:

That's would seem like a logical thought process if you've lied about your income.

If the credit card issuers have doubts about financial solvency of their consumers, no one is stopping them from lobbying for legislation for new laws to prove income before issuing unsecured credit cards.

 

All goes back to the core issue that banks are in the business to make money, and credit cards are one way to generate revenue. Without customers, they wouldn't be as profitable as they are. 

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3 hours ago, yummysbakery said:

Actually I have both lol. Old school company with no direct deposit. Paper check issued biweekly with computer print out of deductions. So it was no problem to email a photo of them.


Sent from my 2PQ93 using Tapatalk
 

Exactly. Don't take it personally, just send them the info or not. At least they're not asking for tax forms, and they let you know before you tried to use it to book your dream vacation or something. Seems like they learned from all the bad PR they got from the sudden suspensions and 4506-T requests in the past. 

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And it's algorithms they run that flag accounts. It isn't you. But when you get a card, break it in good and use it once in a while. :)

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On ‎7‎/‎16‎/‎2018 at 6:29 PM, yummysbakery said:

There was one but I threw it in the drawer and forgot about it.

 

"Non-Standard" behavior by the average consumer who opens a "Rewards Earning CC".

 

Whatever you do, don't take it "Personal", it's just business.

 

The upside is you can earn a Delta SUB from AMEX in the future.:yahoo:

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7 hours ago, NorCalR1 said:

If the credit card issuers have doubts about financial solvency of their consumers, no one is stopping them from lobbying for legislation for new laws to prove income before issuing unsecured credit cards.

 

All goes back to the core issue that banks are in the business to make money, and credit cards are one way to generate revenue. Without customers, they wouldn't be as profitable as they are. 

Lobbying for legislation?  Read your credit card agreement.  Here's an excerpt from an Amex agreement:

 

D3WH95Z.png

 

Also, proving income doesn't prove solvency.

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12 hours ago, NorCalR1 said:

Pay stubs, tax returns, w2's, etc, are not standard industry practice for credit card issuers. As such, I would take my business elsewhere. That's just me. There is nothing that AMEX can offer me that the competition cannot also offer.

Income verification is standard industry practice even though it is not performed on every credit card customer.  AmEx is not unique in verifying income by a very long shot.  The difference with them is they have typically used the 4605-T for income verification.

Edited by takeshi

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On 7/19/2018 at 4:43 AM, cv91915 said:

Lobbying for legislation?  Read your credit card agreement.  Here's an excerpt from an Amex agreement:

 

D3WH95Z.png

 

Also, proving income doesn't prove solvency.

 

As many celebrities can attest.

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