American Express lowers my credit line from $37K to $7K

[Anonymous]

I was talking to my sister about 15 minutes after I posted, their Amex (don't know which one) was cut from around 35k to 100 dollars over their balance (around $2200). They discovered when they went to buy new washer/drier and the card was declined. Sis called Amex, who said 'sorry, you'll receive a notice in a few days. We just think you have enough credit'. As for me, I carry a BUNCH of backups.

[Anonymous]

My balance was $8K, and I paid off last month's balance of $9K. 

My current incurred charges is $7500.  

I want to close this account but know it' sonly going to hurt me.  

[Anonymous]

and I was paying off at least $2K if not the full balance.. but I had talked to them finally today after being on hold for 3hrs++.  They are reviewing all accounts every 3 months now and readjusting the credit limits.

[Anonymous]

Thank you guys... it does seem apparent that Amex is is hurt.  Of course the ramification is it would affect my credit score even more right b/c my credit limit has been slashed. Everyone's confirmation is correct, they are in a world of hurt as well.

I am glad I do have a backup... but it's time to refocus and pay off my debts to bring up my score again.  It's just upsetting when I've worked so hard to bring my credit score up.

[haulingthescoreup]

Hang on to the card. There's no telling where they'll be in 6 months. I can only imagine how angry you are, but IMO, you might as well salvage something from the mess.

[MidnightVoice]

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@Anonymous wrote:

They are reviewing all accounts every 3 months now and readjusting the credit limits.

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No that is interesting! 

[haulingthescoreup]

If they need to lower lots of CL's for some sort of accounting reason, this is not terribly surprising.

[Anonymous]

They probably lost a lot with all the companies having issues. Those are probably some of their biggest customers.
Hopefully they don't spend 440,000 on a resort retreat and 86,000 hunting

[Watchmann]

One thing we never know in these situations is the whole story, i.e. what is on the CR that makes AMEX nervous?  Lates, sudden high balances, opening other credit, etc, etc. ??  Everyone jumps on AMEX as to what a bad company they are.  AMEX has been around a long time and is run by smart people, they just aren't going around willy nilly and cutting lines of credit without some judgement, and we are not privy to their internal risk modeling and decision making process.  If you don't like AMEX just don't get any of their cards.  But it seems most people still want the card, why is that if they are so bad?

[Anonymous]

The companies that went belly up and the ones getting help are supposedly ran by smart people too.
They still have issues.