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ms_snark
Posts: 11
Registered: ‎12-02-2008
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Re: Amex Scrooge - Panics on Black Friday, Cuts Credit Lines TODAY! Amex Ruins X-Mas!

I posted about my Am Ex experience earlier in this thread about my Optima Card CL being reduced from 15k to $500 and my Am Ex Gold having deferred payment suspended, well I still can't get anyone in Am Ex to explain the reduction- all I get is promises that someone will call back. Just for kicks I ran all 3 credit reports today with FICO scores.

The reasons Am Ex cited:

late pays: none- ever as verfied by all 3 reports

Recent Mortgage: refi in 2003 with only loan balance refinanced to lower interest rates

Too many inquires: 1 in 12 months

Debt to Credit Ratio to high:

  Installment 9% Revolving 6% mortgage 84%

FICO Scores

Equifax: 778

TU: 795

Experian: 795

   Oh, and by the way...I got a letter yesterday that my Chase CC with a Zero balance has interest increase to 22.99 percent..go figure!

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BuyGoldNow
Posts: 28
Registered: ‎11-02-2008
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Re: Amex Scrooge - Panics on Black Friday, Cuts Credit Lines TODAY! Amex Ruins X-Mas!

[ Edited ]
ATTN FELLOW AMEX VICTIMS & FUTURE FICO FAILURES: 

DO NOT FULLY PAY DOWN YOUR AMEX CC BALS (if you have low APR balances).  YOU WILL LOSE THE CL AS YOU GO. 

PAY ONLY THE MINIMUM + FINANCE CHARGE SO YOU PAY DOWN PRINCIPAL.

AMEX IS GOING DOWN FURTHER, THEY HAVE AND WILL CONTINUE LYING ABOUT YOUR CLDs.


YOU HAVE BEEN ALERTED!!!! 

SUPPORT BOYCOTT AMEX DAY (or week) (date to be decided, let's pick one)
 
 

AXP 19.43, +0.53, +2.8%) and its subsidiaries had their long-term ratings lowered to A from A+, and A-1 short-term ratings affirmed, by Standard & Poor's. The outlook is negative. "The actions reflect our concerns about the weakening operating environment for consumer lenders, deterioration in Amex's credit-card loan portfolio and Amex's wholesale funding concentration," said John Bartko, an S&P credit analyst, in a statement.

 

http://www.marketwatch.com/news/story/sp-cuts-american-express-long-term/story.aspx?guid=%7B58A42DA4...

Message Edited by BuyGoldNow on 12-20-2008 09:51 AM
Message Edited by BuyGoldNow on 12-20-2008 09:55 AM
Established Contributor
cobaltnv
Posts: 640
Registered: ‎09-02-2008

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

Paying only the minimum to AMEX may keep your credit limits up, but at what cost? You will be paying finance charges on the balance giving your hard earned money to a company you clearly do not like. This makes no sense. If AMEX is treating you so poorly pay off your balance and close your account with them. The CL is unimportant for any utilization calculation if your balances are being chased down anyway. Therefore, closing the account is not going to have much (if any) effect on your FICO score. Save yourself the consternation and close the account.
TU 810: EQ 813: EX 814 (9/16/09--Loan officer pull)

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BuyGoldNow
Posts: 28
Registered: ‎11-02-2008
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Re: Amex Scrooge - Panics on Black Friday, Cuts Credit Lines TODAY! Amex Ruins X-Mas!

I said for LOW APR balances.  Low as in any APR under, say 6%?
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cobaltnv
Posts: 640
Registered: ‎09-02-2008

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

Even with a low apr you are still giving $$ to AMEX (although obviously not nearly as much relative to a higher apr). I just do not understand why some let the ccc add stress to their lives--it is not worth it. If AMEX is causing you stress get rid of them, there are lots of other credit card companies out there. The potential FICO hit is well worth the stress reduction (IMHO).
TU 810: EQ 813: EX 814 (9/16/09--Loan officer pull)

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BuyGoldNow
Posts: 28
Registered: ‎11-02-2008
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Re: Amex Scrooge - Panics on Black Friday, Cuts Credit Lines TODAY! Amex Ruins X-Mas!

FICO will be under future Fed pressure to rethink and recalculate FICO scoresback up as the credit tsunami worsens.  Fed action this week wants YOU buying houses, cars and you can't with artificially lowered FICO scores based on CLDs from mismanaged companies like AMEX. 

Super Contributor
MidnightVoice
Posts: 8,159
Registered: ‎03-25-2007

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


BuyGoldNow wrote:

FICO will be under future Fed pressure to rethink and recalculate FICO scoresback up as the credit tsunami worsens. 


I am not sure about this.  Statistics are statistics

The slide from grace is really more like gliding
And I've found the trick is not to stop the sliding
But to find a graceful way of staying slid
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Epic Contributor
haulingthescoreup
Posts: 28,115
Registered: ‎04-01-2007

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

[ Edited ]
Agreed; it's more a question of lender decisions. FICO scores are only one part of what they look at, in addition to credit reports as a whole, income, and so forth.

Lenders will have to realize that people with balances are getting their scores lowered due to CLD's. It's going to have to be something that we consumers will need to point out when calling for recon. In the meantime, the important thing will be to continue to pay down/ off balances.
Message Edited by haulingthescoreup on 12-20-2008 01:28 PM
* 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
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dizzier
Posts: 733
Registered: ‎10-23-2007
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Re: Amex Scrooge - Panics on Black Friday, Cuts Credit Lines TODAY! Amex Ruins X-Mas!

This is pointless. Quit your dooms-daying and just pay off and close the account. AmEX has decided that they don't want your business. They will chase your balance and eventually close your account. If you try to stall they will most likely close it with a balance and demand immediate payment. Really, it's not worth it. It's just a credit card.
____________________
FICOs: (as of 12-10-08): EX 759 | (as of 01-24-10): EQ 794 TU 756 EX ? | (as of 3-17-11): EQ 794 TU 790 EX ?

Until Chase lowers my ridiculously high APR they can kiss my patootie! Their card has been retired to the sockdrawer. :smileymad:
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woopah
Posts: 721
Registered: ‎03-15-2008
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Re: Amex Scrooge - Panics on Black Friday, Cuts Credit Lines TODAY! Amex Ruins X-Mas!


dizzier wrote:
This is pointless. Quit your dooms-daying and just pay off and close the account. AmEX has decided that they don't want your business. They will chase your balance and eventually close your account. If you try to stall they will most likely close it with a balance and demand immediate payment. Really, it's not worth it. It's just a credit card.

 

Agreed.  I have in the past carried very large balances on cards, and am currently carrying a $4.2K balance on my Chase 0% interest card.  The card will be paid off in February and there will be no more credit card debt.  

 

There is no sense in continuing to talk about how evil Amex is and how you shouldn't pay down your balance when you can A: afford to and B: regardless of how long it takes you to pay it down they are going to continue CLD'ing you and continue to damage your credit score by leaving you maxed out.  

 

Better to pay the card off and either close it yourself, have them close it when it hits zero, or have an opened line at $500 if you want it.

4/16/09: TU: 775, EQ: 805
2/11/09: TU: 773, EQ: 790, EX:790
11/16/08: TU: 773, EQ: 785, EX: 780
Goals for 2009: 0 Credit Card Debt & 0% Util (achieved 2/6/09), Mortgage! (achieved 11/2/09), getting closer to 800 scores (I crossed this earlier this year, but I'm sure I'm not there anymore!)

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