Jump to content

Please consider disabling your adblocker for CreditBoards if you have not already done so.  This site depends on advertising revenue to stay online.


Sign in to follow this  

Effects of AU credit file on me?

Recommended Posts

Posted (edited)

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

Share this post


Link to post
Share on other sites

I doubt amex took AA on you for her late on a non-amex account. AFAIK amex doesn't do ARs on AUs.  I would assume amex lowered your limit on the one card because it extended you more biz credit (assuming you're a PG on that account).

Share this post


Link to post
Share on other sites
Posted (edited)

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

Share this post


Link to post
Share on other sites

ok, so should I be concerned about my Citi card then? 

 

I am a PG on the biz card, so that does make sense as well - curious does AMEX do the 3x CLI on biz cards as well? 

Share this post


Link to post
Share on other sites

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

Share this post


Link to post
Share on other sites

I don't think so - or at least until a large scale credit crunch occurs. I've received CLIs on other TLs since Amex cut their CLs. I think this is something Amex is doing on a large scale possibly in preparation for an economic downturn.

Share this post


Link to post
Share on other sites

2 people I know just had their AMEX limits chopped in half also. Clean files, long history, carry 30-40% utilization at all times though.  Hoping I stay under that radar but expecting the hatchet.

Share this post


Link to post
Share on other sites

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

Share this post


Link to post
Share on other sites

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. 

Share this post


Link to post
Share on other sites

I have one card with Amex and recently they increased my limit to $10K. I spend between 9-10% of my credit limit every month and PIF. I hope Amex doesn't CLD me. Oh well, if they do it is what it is.

Share this post


Link to post
Share on other sites

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. 

Share this post


Link to post
Share on other sites

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.

Share this post


Link to post
Share on other sites
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.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Sign in to follow this  




  • Today's Birthdays

    No users celebrating today.
  • Member Statistics

    • Total Members
      178,640
    • Most Online
      2,046

    Newest Member
    HallFinancial
    Joined

About Us

Since 2003, creditboards.com has helped thousands of people repair their credit, force abusive collection agents to follow the law, ensure proper reporting by credit reporting agencies, and provided financial education to help avoid the pitfalls that can lead to negative tradelines.
×
×
  • Create New...

Important Information

Guidelines