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Frequent Contributor
oneloveforall_2000
Posts: 276
Registered: ‎08-20-2007
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Amex HELP HELp!!! They just lowered my credit limit after decreasing my apr to 7.9%

 I don't understand what is going on with amex,they just lowered my credit limit after decreasing my apr to 7.9%, I'm lost for words... What should I do? I was thinking of closing the card at least if I do I can keep the 7.9% apr.. I called them already they don't care, wont bring the credit limit back up. Should I close now? Because of the credit limit decrease the card is max out now.. And no I will not pay them off or do a BT.
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jmbfl
Posts: 1,185
Registered: ‎03-04-2008
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Re: Amex HELP HELp!!! They just lowered my credit limit after decreasing my apr to 7.9%

[ Edited ]

oneloveforall_2000 wrote:
 I don't understand what is going on with amex,they just lowered my credit limit after decreasing my apr to 7.9%, I'm lost for words... What should I do? I was thinking of closing the card at least if I do I can keep the 7.9% apr.. I called them already they don't care, wont bring the credit limit back up. Should I close now? Because of the credit limit decrease the card is max out now.. And no I will not pay them off or do a BT.

They reduced your CL for a reason. They will likely chase your balance down to zero. Looks like they do not want your business. You need to make timely payments on this account until paid in full. It is also safer for you to have paid off this account before it is closed (by them). I, personally, would continue making on-time payments and get this paid off as quickly as possible. I would not close the card. AMEX is being tough as nails these days and if they do not like you you will be far better off without them. That said, do not close the card unless absolutely neccessary. SD it.

Message Edited by jmbfl on 10-11-2008 02:02 PM
Frequent Contributor
oneloveforall_2000
Posts: 276
Registered: ‎08-20-2007
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Re: Amex HELP HELp!!! They just lowered my credit limit after decreasing my apr to 7.9%

umm. I always make timely payments, my point is that I have a 7.9apr rite now so if i close the card they can't bring it up, but if i leave the card open they can bring it up whenever they see fit, They will not get paid off anytime soon, with this market I'm saving all my money.. amex is the kind of company that will drcrease your cl even more as you pay them off... So for that reason they will wait! I really don't care for the reason why they decrease my cl i have a fico of 740-760 my scores are better now then before i got the card...
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Jubeyy
Posts: 258
Registered: ‎06-03-2008
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Re: Amex HELP HELp!!! They just lowered my credit limit after decreasing my apr to 7.9%

[ Edited ]

oneloveforall_2000 wrote:
umm. I always make timely payments
 
No one is suggesting that you don't make timely payments except for yourself by saying you will not pay them.

oneloveforall_2000 wrote:
 They will not get paid off anytime soon, with this market I'm saving all my money.. 
 
That's great...but the money you owe them is THEIRS, not yours. 

oneloveforall_2000 wrote:
amex is the kind of company that will drcrease your cl even more as you pay them off...
That's what chasing the balance means.

oneloveforall_2000 wrote:
So for that reason they will wait! 
that's not exactly making timely payments now is it?

oneloveforall_2000 wrote:
I really don't care for the reason why they decrease my cl 
Uggggghh.  

 

 

 

 

 

 

Message Edited by Jubeyy on 10-11-2008 02:24 PM
Valued Contributor
jmbfl
Posts: 1,185
Registered: ‎03-04-2008
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Re: Amex HELP HELp!!! They just lowered my credit limit after decreasing my apr to 7.9%

You have not supplied sufficient information to formulate an appropriate recommendation. AMEX's pattern of AA seems to be CLD's and not APR increases. If you continue to make timely payments they might leave the APR alone.

 

Reading between the lines it sounds like you revolved too much for too long on an AMEX revolver. That's a recipe for disaster these days. AMEX likes PIF even on their revolvers and does not like those who revolve balances for too high a percentage of their CL or for more than a few months. I am sorry this happened to you, but remember the old adage: measure twice, cut once. Do not act in haste!

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Epic Contributor
haulingthescoreup
Posts: 28,098
Registered: ‎04-01-2007

Re: Amex HELP HELp!!! They just lowered my credit limit after decreasing my apr to 7.9%


oneloveforall_2000 wrote:
 I don't understand what is going on with amex,they just lowered my credit limit after decreasing my apr to 7.9%, I'm lost for words... What should I do? I was thinking of closing the card at least if I do I can keep the 7.9% apr.. I called them already they don't care, wont bring the credit limit back up. Should I close now? Because of the credit limit decrease the card is max out now.. And no I will not pay them off or do a BT.
So sorry to hear this! What is your balance, and what was your CL?

You have already identified the alternatives. Pay it off and keep it open, not knowing what might happen with the APR in the meantime, or close it to freeze the current APR, pay it off, and let it die. (It should keep reporting for 10 years after closing.)


For any new members who might be reading, do NOT carry balances on CC's! You are completely at the mercy of the lender, and that's a terrible place to be, as happened to OP. The only exceptions are (1) 0% rates and (2) APR's lower than what you can earn in savings. Even then, you should have cash in the bank to cover any CC balances, so that you can pay them off immediately, when necessary.

Don't get suckered into the debt mentality, especially in this day and age. Lenders are running scared, and they can and will pounce on a borrower who looks as if s/he might be a juicy little source of interest income. Credit is a great servant for getting rewards, maximizing consumer protections, and allowing you to do bill pay once or twice or month, but you do not want to let it become your master.
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Valued Contributor
jmbfl
Posts: 1,185
Registered: ‎03-04-2008
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Re: Amex HELP HELp!!! They just lowered my credit limit after decreasing my apr to 7.9%

[ Edited ]

Well put, HTSU!

 

I do not view AMEX as evil maniacs. Just maniacs. That is why I think they will cut the CL and leave the APR alone. Providian were evil maniacs. They would sell you a CLI, then, rather than cutting your CL, they would RJ you to an astronomically high APR when you used that CLI they sold you. If you carry a balance you are in a vulnerable position to be abused like this. I learned the hard way. I will never expose myself like that again!

 

There is a vital difference:

1) AMEX does you in a way that may effect your credit report, and possibly indirectly your other credit,

2) Providian and their RJ'ing cousins do you in a way that will have no effect on your credit report, but a massive effect on your wallet! Paying off debt RJ'ed to 33% can take forever. Brings new meaning to the term unconscionable!

Message Edited by jmbfl on 10-11-2008 03:42 PM
Frequent Contributor
oneloveforall_2000
Posts: 276
Registered: ‎08-20-2007
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Re: Amex HELP HELp!!! They just lowered my credit limit after decreasing my apr to 7.9%

when i say i'm not gonna pay them, I mean i wont pay them in full!!  but i will still make payments
Valued Contributor
wmarat
Posts: 1,754
Registered: ‎11-03-2007

Re: Amex HELP HELp!!! They just lowered my credit limit after decreasing my apr to 7.9%

Amex CLD or FR or AA if

1. You carry balances

2. You do not carry balances

3. Y ou PIF

4. You revolve balances

5. You have US mail adress

6. You are white/black/ green/yellow/blue/purple/Hispanic/Jewish/Asian/Irish/Europenean/African/Aussie or Vesp (small tribe living in Komi area of Russia)

6. You were born on any day ending on letter y

7. You were Amex cardholder anytime from 1 day to 55 years

8. Your family name starts with any letter from A to Z

9 Your SSN ends on 8 or 2 or 5 or pick your number.

10. Any reason you can think of (not nesecerilly credit/finance related).

 

SERIOUSLY

 

Nobody knows how AmeX's computer picks next AA victim and there is nothing we can do.

 

So, people always carry BACK UP.

IN VINO VERITAS.
Established Contributor
Takunda1
Posts: 512
Registered: ‎06-08-2007
0

Re: Amex HELP HELp!!! They just lowered my credit limit after decreasing my apr to 7.9%

[ Edited ]

oneloveforall_2000 wrote:
 I don't understand what is going on with amex,they just lowered my credit limit after decreasing my apr to 7.9%, I'm lost for words... What should I do? I was thinking of closing the card at least if I do I can keep the 7.9% apr.. I called them already they don't care, wont bring the credit limit back up. Should I close now? Because of the credit limit decrease the card is max out now.. And no I will not pay them off or do a BT.

Question, did they lower your APR on their own or did you request for it to be lowered?

Message Edited by Takunda1 on 10-12-2008 01:46 PM

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