AMEX CLD!

[nyancat]

So, I was poking around on the American Express site and I found out I got CLD's on the TrueEarnings, with no notification. Specifically, it turns out my $7,300 limit for my new Delta SkyMiles Gold card came directly off my limit for the TrueEarnings, keeping my total limits with AMEX identical. Apparently, I hit the maximum exposure they wanted for my income.

I'm actually okay with this strategy, I much prefer it to being declined for my new card.

[Creditaddict]

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@nyancat wrote:

So, I was poking around on the American Express site and I found out I got CLD's on the TrueEarnings, with no notification. Specifically, it turns out my $7,300 limit for my new Delta SkyMiles Gold card came directly off my limit for the TrueEarnings, keeping my total limits with AMEX identical. Apparently, I hit the maximum exposure they wanted for my income.

I'm actually okay with this strategy, I much prefer it to being declined for my new card.

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That's interesting... I would give up a bit of our Costco Limit to open another card up too I think... wonder how this works to not get declined!?

[nyancat]

Dunno, I just noticed that my Costco limit is now at $8,300. Which is my old Costco limit ($15,600) minus the limit of my new Delta card ($7,300). Hope it's not a sign of adverse action to come, but I imagine not - if they were gonna do more, they'd have done it. Their system clearly decided that was appropriate.

I can't really say I blame them, while *I* know me and I know I'm not going to do anything stupid, giving me credit limits that totalled almost my entire annual income did seem a bit bizarre.

Guess it's a sign to lay off the cards until I start cancelling some!

[nyancat]

Well, I decided to go check my mail and sure enough, there was a letter. It wasn't really an adverse action letter per se (like the letter that came with the card explaining why I didn't get a better APR). It was friendlier, but didn't give a reason. It just said they took all my existing accounts into consideration, including my past spending on those account and that they transferred some of the Costco card's available credit to the SkyMiles card.

It's fairly frendly, not threatening, the only note being the last paragraph saying I can call them to reallocate the limits between cards, but that they are unable to extend any additional credit at this time.

So basically, it seems like a friendly way of saying "we gave you ridiculously huge limits compared to your income, we notice you don't come close to using them, we know you can't afford to so if you did it'd be bad, but you also are responsible and pay in full every month, so we'll let you have the new card you want by shuffling limits around - but don't ask for more credit. You don't use it, and if you did use it, that would be a really bad sign with your income."

Fair enough Amex, fair enough. I don't need any more credit limits than I have, not at all - and I would never use them.

[myjourney]

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@nyancat wrote:

Well, I decided to go check my mail and sure enough, there was a letter. It wasn't really an adverse action letter per se (like the letter that came with the card explaining why I didn't get a better APR). It was friendlier, but didn't give a reason. It just said they took all my existing accounts into consideration, including my past spending on those account and that they transferred some of the Costco card's available credit to the SkyMiles card.

It's fairly frendly, not threatening, the only note being the last paragraph saying I can call them to reallocate the limits between cards, but that they are unable to extend any additional credit at this time.

So basically, it seems like a friendly way of saying "we gave you ridiculously huge limits compared to your income, we notice you don't come close to using them, we know you can't afford to so if you did it'd be bad, but you also are responsible and pay in full every month, so we'll let you have the new card you want by shuffling limits around - but don't ask for more credit. You don't use it, and if you did use it, that would be a really bad sign with your income."

Fair enough Amex, fair enough. I don't need any more credit limits than I have, not at all - and I would never use them.

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God I hate when I read threads like this 

Sorry to hear nyancat

Wish we knew why Barclay Chase Amex or any other lenders do this but I applaud you for coming forth to post your experience to help others in the future 

I would call in the morning one thing I can say about Amex they have been open to reversing decisions in some cases hopefully you have the same results. It can't hurt to try 

Good luck 

[nyancat]

Not going to fight it at all, again, I think my new limits are perfectly reasonable looked at from their perspective and I'd rather be in a place they're comfortable with.

[longtimelurker]

Yes, I don't think this is "bad" except that you didn't get additional credit.   I had similar things happen a few times.   When I applied for the BCP, Amex noted that I hadn't used my Blue Sky for 3 years, and converted that to the BCP (and added 5K) and Chase did the same to my Slate when I applied for the BA card (so these were unrequested PCs, a term I didn't know at the time).

It also works the other way.  On another forum, Amex is giving people new Blue Cash cards (with new CLs) but then refusing to allow reallocation, leading to questions like "Since you have given me a total of $X, why does it matter how that is split" etc.

[youngandcreditwrthy]

well at least it wasn't a full out cld.

I've been trying to transfer over my Delta limit to my BCE and they keep denying me because the account is less than one year old.

Sillly Amex

[09Lexie]

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@youngandcreditwrthy wrote:

well at least it wasn't a full out cld.

I've been trying to transfer over my Delta limit to my BCE and they keep denying me because the account is less than one year old.

Sillly Amex

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Not sure why you keep trying when this is their policy.  Also, it is after 13 billing statements not just 12 mos old. 

[TrulyyBlessed]

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@nyancat wrote:

So, I was poking around on the American Express site and I found out I got CLD's on the TrueEarnings, with no notification. Specifically, it turns out my $7,300 limit for my new Delta SkyMiles Gold card came directly off my limit for the TrueEarnings, keeping my total limits with AMEX identical. Apparently, I hit the maximum exposure they wanted for my income.

I'm actually okay with this strategy, I much prefer it to being declined for my new card.

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OMG...I was wondering last night could I take a portion of the limit on my HH Amex and apply it to a new AMEX card, but my purpose of thinking of this action was to avoid a hard pull. Since you were not extended new credit (in terms of your limit), and you still have the same amount that was originally extended to you.... was the new card a soft pull?