Amex cancelled my account

[Anonymous]

my CL was 3,000

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@longtimelurker wrote:

What was the CL?   Just surprised they actually closed rather than reduced, unless the CL was already very low

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[Anonymous]

4,000 on a 3,000 CL, I paid it in full then saw the e-mail. They also made a comment about 3 return payments fees I had months ago!. But overall the bills have always been paid. I'm just hoping that in a few months they will reinstate itand I wish they gave a warning before they closed it instead of just randomly doing it.

[Anonymous]

I am sorry to hear this my friend, I hope AmEx gives you an opportunity for reinstatement since it appears your account is in good standing and paid in full.

[wasCB14]

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@Anonymous wrote:

4,000 on a 3,000 CL, I paid it in full then saw the e-mail. They also made a comment about 3 return payments fees I had months ago!. But overall the bills have always been paid. I'm just hoping that in a few months they will reinstate itand I wish they gave a warning before they closed it instead of just randomly doing it.

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Going over the CL plus having three payments returned, all within a few months? I get that it's a major pain, but I can't say the account closure is a shock to me.

Warnings would be nice, but they aren't common in the CC world.

[Anonymous]

IMHO one returned payment is probably enough for AA, but 3 shows very very high risk.  Returned payments are probably one of the worst risk categories (other than missing a payment) -- going over credit limit is another high risk category.  I am not surprised they closed the account -- keep this in mind going forward with future creditors!

[tcbofade]

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@Anonymous wrote:

4,000 on a 3,000 CL, I paid it in full then saw the e-mail. They also made a comment about 3 return payments fees I had months ago!. But overall the bills have always been paid. I'm just hoping that in a few months they will reinstate itand I wish they gave a warning before they closed it instead of just randomly doing it.

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First, it is my goal to be friendly and helpful, not rude or unkind.

This was not random.  $1,000 / 25% over your credit line and THREE returned payments caused the closing.

If you've already paid in full, (good for you!) there isn't much more that you can do except wait.

90 days?  180 days?  I'm not sure how long you'll need to wait, but give it some time and reapply for a new Amex.

Good luck!

[Anonymous]

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@tcbofade wrote:

$1,000 / 25% over your credit line

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It's worse than 25%... $1000 over on a $3000 is 33% over -- or 133% utilization.

Lots of folks get worried if a TL goes over 30% utilization in terms of AA from other prime banks.  133% = 400% more than 30% utilization.  Major red flag for a prime bank like Amex who handles their own risk and long term collections.

[Anonymous]

ninja'd lol

[Anonymous]

Returned payments are no bueno, mi amigo. Manage your other tradelines well and Amex will let you back in

[longtimelurker]

To be fair, Amex could have declined the charges over the CL, so I wouldn't blame the OP for that so much.   Three returned payments in addition though, I am surprised that they waited so long!

Amex can be very forgiving, or not.   When they closed my card because they didn't like the spending pattern let's say, I was able to get a CLI on another Amex card straight away, a new Amex  card the following month, and a new card of the same type as the closed one two months later.   So make your record look as good as possible, and make sure no more returned payments, and you should be OK