The Definitive Amex 3X CLI Guide

[Blurbz]

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@VegasKyle wrote:
May 11 is day 61 for me.

@signatureB: I think you are mixing up how AMEX credit and charge cards work. With a Charge Card (NPSL: green, gold, plat, black) I think it works how you describe, the high balance is viewed as the CL. With the revolving accounts (credit cards: delta sky miles, blue, etc) I think the utilization is calculated just like any other credit card.

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Sort of.  Amex charge cards report high balance but that number does NOT function "as the credit limit."  Charge cards are considered open credit not revlolving credit so the balance reported on them is not factored into utilization in any post-2004 FICO scoring models.

[MustangSaluki]

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@Blurbz wrote:

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@VegasKyle wrote:
May 11 is day 61 for me.

@signatureB: I think you are mixing up how AMEX credit and charge cards work. With a Charge Card (NPSL: green, gold, plat, black) I think it works how you describe, the high balance is viewed as the CL. With the revolving accounts (credit cards: delta sky miles, blue, etc) I think the utilization is calculated just like any other credit card.

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Sort of.  Amex charge cards report high balance but that number does NOT function "as the credit limit."  Charge cards are considered open credit not revlolving credit so the balance reported on them is not factored into utilization in any post-2004 FICO scoring models.

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And just to add to the excellent points already made here, charge cards can have an effect even in newer FICO models if you leave a balance reporting as it adds to the number of accounts reporting a balance component of scoring models, which can significantly impact FICO scores. For most credit profiles having only one to a maximum of two accounts reporting balance results in the most optimal scores. For profiles with a short credit history, there have been outliers where having zero accounts fetched the most optimal scores. 

Example if you have $100,000 available credit limit across 10 accounts, one of which is a charge card. You leave balances reporting like this 

Scenario1 

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Card 1 = 500

Card 2 = 500

All other cards including charge card = 0

Overal Utilization = (500+500)/10,0000 = 1%

Number of Accounts reporting a balance = 2

Scenario2 

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Card 1 = 500

Card 2 = 500

Charge Card = 500 = High Balance

All other cards = 0

Overal Utilization = (500+500)/10,0000 = 1%, since the balance on charge card is ignored for utilization calculations.

Number of Accounts reporting a balance = 3

Scenario 1 will result in higher scores than scenario 2, sometimes by as much as 10-20+ points.

High balance can be an indicator of historical max utilization for revolving accounts that can be analyzed during a manual review, but has no effect on any scoring models.

[tatterz]

w00t. $6k. Thanks a lot! Awesome thread and forum.

[tk_0014]

Wow it sounds like about everyone is successful at 3x CLI at 61 days. I'm a bit paranioid, but have good scores, AAoA and UTL. Anybody here EVER been denied for 3x CLI, if so, why?

[signatureB]

Thanks for your responses! Applied, and got approved to Blue everyday. Wonder what the initial CL will be...

[culture]

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@signatureB wrote:

Thanks for your responses! Applied, and got approved to Blue everyday. Wonder what the initial CL will be...

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call to check  ?

[primechicken]

Ok I've just read through all 21 pages here and haven't read about anyone addressing this. Does a person stand a better chance using one method of CLI request over the others? Does anyone know or seem to recognize a pattern? For instance, is approval more or less likely when talking to a person, or using the automated phone request, or using the online request? I've seen approvals from all three. Anyone have a suspicion or experience on this?

[QuantumCredit]

May I ask you guys your opinion on requesting a CLI while carrying a balance? I am still in my 0% promotional APR on my BCP until January 2014 and I intend to carry a balance until then. I successfully got a 3x increase at day 61 (2K to 6K) and I had been PIF until then. I'll be eligible for my 6 month CLI in August and I'll probably have around $1500-1700 on the card at that point. My EQ FICO is 790 and my overall util will be less than 7% even with having 25-30% util on my Amex.

I know Amex doesn't like balances. So I'm thinking maybe I should wait until after my 0% expires when I will have PIFed to apply for my next CLI. I REALLY want to get the full 18K, if I get any less I'll be disappointed. On the other hand all my other stats are great and they'll see that I'm only carrying a balance on their card and hopefully figure it's because of the promotional APR. Anyone have experience applying for CLI while carrying a balance? I know it's not an exact science, but what would you say my chances are? What would you recommend?

Thanks.

[SnackTrader]

@primechicken - I have not noticed a pattern, but found online to be easier than calling and going through phone prompts, etc. Overall, a majority of people who have posted on this site (although not an overwhelming majority) report success with some sort of CLI on their Amex within 6 months. Sometimes it's 3x, sometimes it's a counter, sometimes it's an initial denial and then they wait 90 days and get it. But overall, given the apparent willingness to grant CLI requests, it is hard to imagine one method working better than another.

@QuantumCredit - I think you need to reevaluate your mindset on this CLI process. You said you would be disappointed if a lender doesn't multiply their exposure to you by 9 times over a 240 day period of time. Sounds a little spoiled to me. Being disappointed by anything less would mean closing EVERY OTHER card in your wallet, but because this is Amex you are "expecting" this. My guess is that there is a pretty good chance for a counter, regardless of if you are carrying a balance or not just simply because Multiplying exposure to an individual by 9 times over 240 days is a large increase in a short amount of time. I will be welcoming a counter at my 6 month mark because I value any willingness to increase exposure, and appreciate that a lender is willing to trust me in incremental steps.

[primechicken]

Thanks! That's kinda what I suspected, but figured I'd put it out there. I appreciate the response.