American Express Blue Cash Canceled - but just paid down Utilization

[Anonymous]

Well, I tried to defend American Express as much as I could on this forum thinking that their policies of CLD and card cancellations would never affect me.  I was wrong.  I have a perfect payment history, never late, but because of personal reasons, good ones I'll tell you.  My Utilization was over 99% for the last 4 or 5 months.  Two days ago, I paid down my balances to 16% Utilization across all cards.  Well to make this a short story, in the morning I paid down my credit cards, and in the afternoon of the same day American Express Canceled my card.  Apparently, they reviewed my Credit file, saw the high Utilization, and just canceled my card.  Even though I paid them over $2000 just that day to lower my utilization to near zero.  Now I'll have this awesome FICO score, probably near 760, but no American Express card.  

So, does anyone think I could get them to reconsider my card cancellation next week, when my new balances reflect on my Credit Report?

I thought about just applying for a Discover card next week after my FICO increases by about 100 points.  I like their rewards program, and would not have considered applying before because I already had a cash rewards card from American Express.  Now that relationship is ruined.  Maybe I should just start over with a new company.  

What do you think?

[haulingthescoreup]

Like you, I tried to keep saying nice things about them as long as I could, but these days...

AmEx is so shaky these days that I don't know that it's worth trying to depend on them. What's bizarre about them presumably leaning on a report is that they would actually know that you were no longer carrying that balance had they checked internally, but oh well. What was your credit limit? How much did this impact your total credit limit, as in a significant dent vs a tiny one?

So it might be worth trying to get them to reactivate the card just to have it on your reports, but I wouldn't use it as a go-to card any more. Discover as you said, Chase Freedom Plus, PenFed Platinum Plus --there are other cash reward cards out there.

Good luck!

[Anonymous]

I started out with a $6200 credit limit on my American Express Blue Cash, but they slashed that to $900.  I was just waiting for my Utilization to drop, and really was expecting them to raise my CL next month.  Until two days ago this is my Utilization by credit card

Bank of America CL $12,000 maxed

USAA Master Card CL $8,000 maxed

USAA Amercian Express CL $8,000 maxed

American Express Blue Cash CL $900 payed them $2000 over the last month (used their card everyday)

I received $25,000 two days ago, and paid down a $1500 loan, and the rest went to the credit cards.  That's a lot of debt just gone in one morning.

[haulingthescoreup]

Whew, you're right, that's quite a paydown. Glad you've come through that bad spell.

The new low/ $0 balances won't report update on your reports until the USAA and BofA statement dates, but the AmEx won't update until four weeks after your next statement date, so you'll have a maxed-out card showing for a while, I'm afraid.

I wish I knew whether it would help to be pro-active and let BofA and USAA know that the others are paid off, or whether it's better to let sleeping dogs lie. It's a strange world out there, that's for sure.

But it's going to be pretty nerve-wracking waiting for the $0's to show up for all four accounts, I'm afraid. I would definitely hold off on apping a replacement card until these are all cleared off, which could be as long as two months from now, depending on how long ago your AmEx statement dropped.

Good luck!


edited to show where I finally realized that one of the AmEx's was a USAA card, duh me.

So at least you'll just have the one AmEx card balance hanging on, and who knows, by now the other banks might be so used to seeing crazy AmEx balances and util that they won't take action against you.

Message Edited by haulingthescoreup on 02-21-2009 09:24 AM

[Anonymous]

I'll have a zero balance for my American Express Blue Cash that was Canceled regardless, and it reports in a week.

My other cards all report by the 27th of the month, so they will reflect the new balances also.  I'm expecting a FICO increase of about 100 points in one week, so that's awesome.

I've always been good about PIF, except for actually needing to use all the credit the banks loaned me for a short time.  I find it funny they don't ever want you to really use the credit they offer.  It really is something I didn't understand a few years ago, but thanks to this forum it's all becoming clear to me now.

Thanks,

[Red1Blue]

I understand right OP stated over 99% util for 4 or more months. That would trigger an alarm for any creditor in these shaky credit situation.  I think any other Credit Card company would have done the same thing in this economy and credit conditions.

[haulingthescoreup]

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matheinas wrote:

I'll have a zero balance for my American Express Blue Cash that was Canceled regardless, and it reports in a week.

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Well, you might get the statement in a week, but unless you're a lucky exception, that new balance won't be reported to the bureaus for four weeks after that.

My AmEx statements drop on the 16th, but the balance on them doesn't show up on credit reports until the following 14th.

[Anonymous]

I can understand why they did it, but that still doesn't make it feel any better.

[Equinox]

See what really irks me amout AMEX right now is their willingness to slash anyone's limit for whatever reason. I have a Blue Cash with a 2k limit I received in December, but I want to hit the higher cashback tier breakpoint. Problem with that is using the card, even using their card these days warrants a CLD. Feels like I have a deadweight in my pocket.

[Red1Blue]

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@Equinox wrote:

See what really irks me amout AMEX right now is their willingness to slash anyone's limit for whatever reason. I have a Blue Cash with a 2k limit I received in December, but I want to hit the higher cashback tier breakpoint. Problem with that is using the card, even using their card these days warrants a CLD. Feels like I have a deadweight in my pocket.

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Why are you worried? Just use the card, keep the util on the card between 5-10% and pay it in full. On my Gold and Optima, I pay off every 2-3 days what ever the balance is there on the card. Even if it is $5 I pay it off and keep using the card.