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Advice on AmEx credit line increase

Super Contributor

Re: Advice on AmEx credit line increase


Soxfan2016 wrote:

I have the BCE from American Express. My credit is currently in the rebuilding mode as I had some trouble with credit cards in the past, including AmEx but they took me back. But they only gave me $1,000 starting credit limit, which even as a light spender, it makes it hard for me to put bills on my card because it runs up my balance and I have to make payments throughout the month to not run into my limit. 

 

My my credit score was around 670 when I applied for this card in June, but it's taken a pretty big hit due to high utilization. It's currently at 643 (Experian). I'm coming up on my three months to apply for a credit limit from AmEx.  I know about the fabled 3x limit AmEx gives by reading this forum. A $3,000 line of credit for them would be perfect. Is now a good time to try for that increase or should I wait for my scores to keep going up? I pay in full every month even though I have a 0% promotional APR for a year. 


My understanding is that if you have no other cards with them, you could have applied for the increase at 61 days, so unless I'm mistaken you can apply now.


FICO8 EQ 738 TU 786 EX 785 FICO5 EQ 710 Total revolving 500k




Message 11 of 16
Valued Member

Re: Advice on AmEx credit line increase

Maybe I'm wrong, but I think that's for new card members. I'm not a new card member. I had an old AmEx gold card. 

 

Regarding my utilization, shouldn't the fact that I always pay my statement balance in full on both my credit cards more than cancel out my slightly high how util %?

Message 12 of 16
Valued Contributor

Re: Advice on AmEx credit line increase

I was in the exact same scenario, I got a BCE last year and was given only a 1,000 limit only because my history was short. In my experience and from what I have read, if you are given a 1,000 limit it may take some time to be approved for a higher limit, it took me exactly a year.

Gardening until September 2018
Next app: Mortgage in September 2018
Message 13 of 16
Established Contributor

Re: Advice on AmEx credit line increase

I initially squeaked in with a 1k limit on my ED card in Oct of last year. In late March, I got the 3X, putting it at 3k. Then Sep 30th, I tried for the 3X and the only gave me 2X, putting me at 6k. In all fairness, I had not used the card much during the time before the last CLI, but I was laying heavily on the PRG, otherwise they might've granted me the full 3X.

The 61+ CLI thing is for people's profiles that will support it. I was turned down and understandably so. Build it up, use it, make payments often and they'll show you some love at 181. Guaranteed.

Message 14 of 16
Regular Contributor

Re: Advice on AmEx credit line increase


Soxfan2016 wrote:

I'm not sure it's possible to get my utilization that low unless I start putting purchases on my debit card which I really don't want to do because I like getting rewards on my purchases. I try to pay down as much as I can but I usually have at least $700 out of a total of $2250 in available credit when my statement. UTs. 


You don't have to use your debit card.  You can use your Amex (or whatever else) and get all the rewards you are now, but pay the balance down before the statement cuts.  That way it's reported to the CBs as a lower utilization balance and boosts your score.

 

Since you're paying in full anyway, just pay $500 of that $700 off before the statement cuts and it looks like you're using $200 of the $2250 (8.9%) and then pay the other 200 after the bill comes!

Starting score 3/31/15 CK 552/572. Current score 10/28/17 CK 751/748.
FICO TU (Barclay, 10/17) 704; FICO EQ (Citi, 9/26) 697, FICO EX (FCS, 10/28) 697.
Message 15 of 16
Highlighted
Valued Contributor

Re: Advice on AmEx credit line increase


BrutalBodyShots wrote:

A couple of things.  One, you are able to obtain a CLI from Amex 61 days after approval.  You have obviously gone past that date, so in terms of time you are fine.

 

Your score is a different story.  It's not a good look if you were approved (and likely "on the cusp" with that approval) with X score and then 3 months later your score is X-20 or X-30.  I personally wouldn't ask for a CLI unless my score was at least equal to the approval score.  My score at 61 days was 8-10 points higher than my approval score, and I received a 3X CLI.

 

If your score drop is strictly utilization-related, honestly, it's a pretty simple fix and one that only takes as long as it takes you to fix that utilization.  It's not an issue that takes time such as account aging, inquiry aging, baddie aging, etc.  What was your aggregate utilization at the time of approval and what is it now?  Can you pay down aggregate utilization to 9% or less?  how about 29% or less?  If you can answer yes to either of these last 2 questions, chances are you'll see a score bump back to near where you were when you applied.  I don't know enough about your profile to say that for sure, but that's my gut feeling. 

 

I would sit tight on the CLI request for now until you can be sure you EX score is 670+; if you can do that I think your chances of favorable CLI results increase greatly.


+1 I think utilization is key.

 

To keep the utilization down pay before the statement cut off date.

Message 16 of 16