Amex Scrooge - Panics on Black Friday, Cuts Credit Lines TODAY! Amex Ruins X-Mas!

[Anonymous]

I preface this by stating that I handle credit card law suits for a law firm.  (Law SUITs, not collections.)  You wouldn't believe the massive hits CCCs are taking from people with multiple super-high credit lines who are using them to live off of, while using their income to make the payments on the house(s) they never should've purchased in the first place.  I'm talking 10k to 100k limits, maxed, on multiple cards. When the line is maxed, move on to the next card. I've watched this build like a tsunami wave for 2 years.  The CCCs slept (past tense) through it.  They have awakened and are cranky.  

Very high, seldom, or never used credit limits are an open door to legalized bank robbery.  People who wouldn't rob a bank at gunpoint seem to have no qualms about racking up a couple of hundred thousand dollars on their MC, VISAs, DISCOVER CARDs and AM EX's... and then filing bankruptcy.  I talk to people everyday who are / have done just this and openly admit it.  They seem to feel "entitled".  If I'm a CCC, I'm closing the vault door and posting a guard.  (Issuing CLDs and being more vigilant for signs of trouble.)  These are desperate times.  Good people do desperate things. Innocents get hit in the crossfire.  

This post is directed at no one individual... just a heads-up to all as to why the CCCs are reacting the way they are.  Can we say "self defense"?  FICO will, I'm sure, find a way to deal with this new era of credit scoring.

[Anonymous]

My Fico's average 790-810 and have always paid in full....

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@Anonymous wrote:

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How many reading here have 750+ FICOs and never kept a CC balance and always PIF?.       

[Anonymous]

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How many reading here have 750+ FICOs and never kept a CC balance and always PIF?.       

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I do. I don't perpay my AMEX, so it always reports a balance, but I do PIF on the due date every month.

[haulingthescoreup]

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BuyGoldNow wrote:

How many reading here have 750+ FICOs and never kept a CC balance and always PIF?.

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DH's scores are 790-something (TU) and 810's (EX and TU.) He carried a balance at one point until I beat him over the head and shoulders with a rolled-up newspaper.

His scores are a result of long history, squeaky clean payment history, other than an ancient 30 on EX only, and low, low, low, low util. In fact, that's his ding on TU --all revolving accounts reporting $0 balances. (It was up with the other 2.)

High reported util never improves FICO scores.

Message Edited by haulingthescoreup on 11-29-2008 07:50 AM

[score_building]

soonerORlater,

i have no doubt what you say is accurate (and a shame really for those of us who get caught in the crossfire).  however, it doesn't seem to paint a complete portrait. 

desperate, defaulting, immoral customers with huge limits (and excellent credentials?) cannot be the only ones to blame for the problems many banks are having now.  it can't be that obvious and simple, can it?  PLEASE tell me it can't.  at least if it is, one would imagine this mess could have been cleaned up a little quicker than it has been speculated that it will be.

[notmyname]

I am above 770 across all three CRBs. I know why I am not above 800; one line has no inqs and is the highest and one live has four inqs is the lowest. These are always mentioned in those terms on FICO.

The other reason is that I use most of my accounts in a healthy way......paying some off spending on others. My limits go into multiple six figures but my charging patterns are still what they were ten years ago when my limits were ten thousand or so.

I have high limits to facilitate free use without the worry of utl. I wouldn't dream of using more that thirty percent of a limit and that is a stretch for me.

I was on vacation in October and just before I went I called the bank I was going to use and upped the limit above my anticipated spending level so that the account wouldn't go up in utl because of the trip

I think of myself as conservative and reasonable started cutting back on my card use about a year and a half ago. I am in a comfortable place for these times and yet I use my credit with confidence knowing I am doing what the banks would like to see. I think deep inside we all know if we are in that place.

If we aren't we get personal and angry if things go awry.

Good luck to us all,

NMN

[MidnightVoice]

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@Anonymous wrote:

How many reading here have 750+ FICOs and never kept a CC balance and always PIF?.       

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Two out of 3 are above 780 (Amex is 730+, it thinks my heloc is a cc).

 

I have < 3% util, I nearly always PIF

Message Edited by MidnightVoice on 11-29-2008 11:07 AM

[cobaltnv]

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@Anonymous wrote:

How many reading here have 750+ FICOs and never kept a CC balance and always PIF?.       

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I have multiple credit cards (including AMEX) with high credit limits ($10k-25k each), use approximately 1% of my available credit each month, and I always PIF. I have never (fingers crossed) had a cld or a rate jack nor have I ever been late. My FICOs are in the 790-815 range. I agree with the other posters here, credit is a privilege and needs to be used responsibility. The credit cards given to us by banks are basically pre-approved, use when you want, unsecured loans. Companies are just starting to realize (hopefully) that giving someone, like myself, approval for >$100k in unsecured loans on a salary much less than $100k is not necessarily the smartest idea. While many (most?) of us use this power responsibly, it would not take too many people racking up $100k in debt before the system develops some real problems. 

[score_building]

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@cobaltnv wrote:

 it would not take too many people racking up $100k in debt before the system develops some real problems. 

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one would think so, but with profits in the billions year after year it seems they've somehow been willing to let this continue unchecked, until fairly recently... 

[marty56]

0% or 1% util depending on how I manage my balance reporting.  PIF'er now for 6 months.

LOL I wish the CCCs CLD'd me about 20 years ago when I started my reign of terror in using credit cards.

To those who are having troble manage their spending (like I did), CLD's might be a blessing.

Message Edited by marty56 on 11-30-2008 05:41 AM