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Effects of AU credit file on me?


bobsmith99
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The last post in this topic was posted 1037 days ago. 

 

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Was wondering what the affect on me is from an AU's personal credit file? 

 

My issue is that AMEX decided to whack one of my cards from $18k down to just $9500 overnight. I have a fantastic history with them, 3 cards: 

- my biz plat I spend ~$35-40k/mo and PIF, never missed a payment

- persona plat, always PIF, no missed payments ever

- Cash Magnet card, PIF, no missed payments

- and they just gave me a 4th card for $23k for my business 2 days ago. 

 

The AMEX card they whacked in half (Cash Magnet) is the only AMEX card I have my spouse as an AU on. When I told her about the decrease in limit, she let me know that she just got a 30 day late on one of her accounts for a store card that I was unaware of....

 

Now I'm worried that 1) AMEX saw this 30 day late on her file and whacked my card in half since shes an AU and 2) will Citi be doing the same to me in short order since AMEX just did?? Shes an AU on my Citi card as well, $20k limit.

 

If so, my utilization which is around 12% now, would shoot up and could drop my scores?

 

Anyone have any background on a situation like this? Should I remove her as AU from all my cards before they all start whacking my CLs? Concerned as I've worked hard to get our limits up, my score up and my keep my utilization low. 

 

 

 

 

Edited by bobsmith99
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No sir - Amex is whacking CL's in half on an apparent large scale. DW went from $30K to $15K, I went from $50K to $25K. The excuse was "non-utilization of existing credit limit"

My FICO on Amex's website was in the 830s at that time, DW's was in the high 700's like 780s or 790s

Amex looked for an excuse to cut your CL in half and found one in your DW. Sorry 'bout your luck.

Edited by IndyPoolPlayer
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I think all large issuers' limits are potentially chopped these days but your citi limit isn't uber-high. Even if it is cut, I would not worry about it as it is beyond your control. I'm not sure about amex 3x on biz limits. hopefully someone who knows will chime-in

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ok, so maybe this is just more a by product of the current economic situation then... even the $8500 cut while not huge, is still going to bump my utilization up a few points. I probably should pay down anything else I have to maintain the utilization at 12% or less. 

 

Thanks for all the quick replies from everyone! Hope you're all doing well otherwise sheltering at home

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As others have indicated this has nothing to do with the AU credit file and everything to do with the proactive steps many lenders are taking right now given the economic instability during this pandemic.  
 

Look for rates to get more appealing for exceptional credit individuals but underwriting to simultaneously get stronger.  Rates for average/marginal credit to increase and the subprime lenders to all but stop lending.  

 

Companies are going to aim to limit their exposure unless they feel it brings more balance/stability to their portfolio.  These actions will include cutting credit limits, requiring stronger collateral/down payments, or having businesses they finance for paying a steeper discount.  All of this despite all the talk of rates decreasing. 

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The important thing to remember is that, just like in 2008, limits that are whacked will eventually be restored for those consumers who have a profile that continues to support higher limits. 

 

So far, with AXP, the only thing I have seen reduced has been what they were willing to lend on their personal loans.  I look at that periodically just to see what they were doing with APR's as the fed continued the march to zero...but 5.98% isn't worth paying and that was as low as I have seen them going on those loan offerings. 

 

I do have charges that I have processing through the two credit products on a recurring basis.  Most of the activity remains on the Plat, although admittedly, that is substantially lessened this month with the reduced, ok non-existent, travel. 

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so surprise! - got a letter in the mail from AMEX today - states they "borrowed" from the Cash Magnet card for the new Biz Blue card "to give me a more usable limit". Letter also states if I want to shift some amount back to Cash Magnet, to just give them a call. 

 

@centex, regarding their loans, I could never reason taking one from them with the rates and terms they offer - especially compared with the biz LOC my bank gives me.

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1 hour ago, bobsmith99 said:

so surprise! - got a letter in the mail from AMEX today - states they "borrowed" from the Cash Magnet card for the new Biz Blue card "to give me a more usable limit". Letter also states if I want to shift some amount back to Cash Magnet, to just give them a call. 

 

 

this is SOP for amex, BOA, chase, etc.

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