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Frequent Contributor
OptimasPrime
Posts: 348
Registered: ‎08-17-2012
0

Amex charge card spending ability vs. Revolver cl's

Currently the check spending ability button on the Amex website has approved amounts up to about $8000 on my Zync card (essentially way more than I would ever spend in a month). My BCE however, still has a 2k cl which hasn't budged despite 2 cli requests.

 

So my question to everyone who has both an Amex charge card and revolver is basically how closely does your charge cards internal spending limit compare with the cl of your revolver(s)?

 

I am interested as to whether or not there is any correlation between the two different  limits or if it is more of a random case by case type of thing

 

Feel free to share any thoughts or experiences on the subject.

EQ 778 | TU 776
Barclay US Airways WMC 7.5k | BCE 5.8k | BofA Travel Rewards 9.1k | Chase Marriott Premier 13k | Citi TYP WMC 6.5k | Freedom Visa Sig 8k| Discover it 10k
Valued Contributor
jamesdwi
Posts: 1,970
Registered: ‎09-16-2011
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Re: Amex charge card spending ability vs. Revolver cl's

Seems that AMEX gives 2k limits on revolvers on boarder line approvals they probably just want more time. Is your balance at 0 when you request your CLI, i heard it helps. 

Is your income enough to support your higher limit? This is where your spending on your Zync card comes into play If they see you spending 2k a month on the zync card and they got your rent on your initial AP so they can do the math to see what you can afford. Also your existing limits are on the low side Only one card that has a 3k limit. Need to work on increasing the limits. Your scores look good just need to find a creditor willing to step up and give you a 5k limit. 

 

 


Cards: Chase Southwest 20k & CSP 10k & Freedom 6.6k & Amtrak 4.6k, FNBO DISC 14.9k Oregon Duck 5k, & AMEX BCP 15k & Hilton Surpass 7.5k & Delta Gold 6k & Zync NPSL, Sally Mae5k Sams Club MC 10k, Paypal Extras MC 6k, CapOne QS 2.5k, QS 750, Amazon 3.9k, Walmart 4.5k, Citi Simplicity 7k, HHonors Gold 1k (moved 5k CL to Simplicity), Discover IT 6.5k and a nice stack of store cards.
Last APP 12/15/2014
Established Contributor
Koop10010
Posts: 731
Registered: ‎02-15-2012
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Re: Amex charge card spending ability vs. Revolver cl's

My Blue has a $6K limit and my charge card internal limit is somewhere around there too.  It was considerably higher ($15K+) at one point after I had a few high spend months late last year and before I applied for my Blue.  It's come down now though, due to opening a new Amex credit card and two new Chase cards.  Last year my Amex charge got all of my spending, this year it's been about 60-70% and it won't have hardly any usage for the next couple months, until I hit $3K on my Sapphire Preferred.

FICOs (2/24/12): EX 752, EQ 740
Chase Sapphire Preferred, Freedom; American Express PR Gold, Blue Cash Everyday
Frequent Contributor
OptimasPrime
Posts: 348
Registered: ‎08-17-2012
0

Re: Amex charge card spending ability vs. Revolver cl's

[ Edited ]

jamesdwi wrote:

Seems that AMEX gives 2k limits on revolvers on boarder line approvals they probably just want more time. Is your balance at 0 when you request your CLI, i heard it helps. 

Is your income enough to support your higher limit? This is where your spending on your Zync card comes into play If they see you spending 2k a month on the zync card and they got your rent on your initial AP so they can do the math to see what you can afford. Also your existing limits are on the low side Only one card that has a 3k limit. Need to work on increasing the limits. Your scores look good just need to find a creditor willing to step up and give you a 5k limit. 

 

 


I guess I didn't really provide enough background info. I'm currently a grad student, income ~20k, 22 yrs old, AAoA 2 yrs 9 months (student loans and au help) according to credit karma .

 

Based on my scores I don't have much problem qualifying for good/prime cards (with the obvious exception of visa sigs and world mcs) but the issue of income, and a comparatively low aaoa is whats generally keeping my limits low. I finish with school in May and have already accepted a position (job offer through internship) that will just about triple my income. Basically I'm thinking that I will be able to have all the cards in my sig besides cap one over 5k by this time next year. At this point I'm not in too much of a hurry to raise cl's (unless sp) since I pretty much have what I need, and know that it will be much less of a hassle when I can report a higher income.

 

I had just seen alot of people on the forms rapidly growing their cl's on the bce and had hoped for a similar experience. I just find it odd that i can put up to 8k on my zync but they refuse to budge the cl of my bce.

 

Accordingly, I had tried to make the op more about whether or not it was normal for people on the forums to have much higher internal limits on charge cards than cl's on their amex revolvers, which has been the case for me personally.

 

 

EQ 778 | TU 776
Barclay US Airways WMC 7.5k | BCE 5.8k | BofA Travel Rewards 9.1k | Chase Marriott Premier 13k | Citi TYP WMC 6.5k | Freedom Visa Sig 8k| Discover it 10k
Established Contributor
Cdnewmanpac
Posts: 766
Registered: ‎01-16-2012
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Re: Amex charge card spending ability vs. Revolver cl's

To answer your question, it is not uncommon for people with both an Amex charge and revolver to have a monthly spending limit that exceeds (sometimes vastly) their credit limit on the revolver. There have been several threads where this is discussed and several explanations offered. When it comes to charge cards, Amex has a vast internal database, built over years and benefitting from being both an issuer and a network (thus giving them merchant AND customer data). They can leverage this data the most when making charge card spending limit decisions. When it comes to revolvers, they are very much at the mercy of external elements such as fico scores. They therefore tend to be more confident in their monthly spending predictions, thus more liberal with these limits. Additionally, most people tend to use charge cards for expenses they either have the funds to cover already or will have the funds very shortly. In contrast, most people (as opposed to most members of this forum) use credit cards for expenses they cannot cover with funds on hand. Therefore, the risk models are really very different. The former is much more income/asset vs liability dependent, whereas the latter is much more dependent on the ability of past behavior to predict future behavior. 

I have a hilton surpass with a 1k limit, but have charged >10k to my zync on several occasions without difficulty. There are people on this forum who routinely charge 20-30k/month on amex charge cards, but have limits in the 20-25k range on their revolvers. Different models, different uses, different amounts. 

In wallet: Ink Plus 10k, AMEX TE 25k. In bag: CSP 16k, USAA WMC 15k, Hyatt 13k, United MPE 12k, AMEX HHonors 3k. In SD: Cap 1 QS 5k, Discover IT 7k. FICO 08 says my EQ is now 844, was 510 in 2010.
Frequent Contributor
OptimasPrime
Posts: 348
Registered: ‎08-17-2012
0

Re: Amex charge card spending ability vs. Revolver cl's


Cdnewmanpac wrote:

To answer your question, it is not uncommon for people with both an Amex charge and revolver to have a monthly spending limit that exceeds (sometimes vastly) their credit limit on the revolver. There have been several threads where this is discussed and several explanations offered. When it comes to charge cards, Amex has a vast internal database, built over years and benefitting from being both an issuer and a network (thus giving them merchant AND customer data). They can leverage this data the most when making charge card spending limit decisions. When it comes to revolvers, they are very much at the mercy of external elements such as fico scores. They therefore tend to be more confident in their monthly spending predictions, thus more liberal with these limits. Additionally, most people tend to use charge cards for expenses they either have the funds to cover already or will have the funds very shortly. In contrast, most people (as opposed to most members of this forum) use credit cards for expenses they cannot cover with funds on hand. Therefore, the risk models are really very different. The former is much more income/asset vs liability dependent, whereas the latter is much more dependent on the ability of past behavior to predict future behavior. 

I have a hilton surpass with a 1k limit, but have charged >10k to my zync on several occasions without difficulty. There are people on this forum who routinely charge 20-30k/month on amex charge cards, but have limits in the 20-25k range on their revolvers. Different models, different uses, different amounts. 


Thank you. That explanation makes alot of sense.

EQ 778 | TU 776
Barclay US Airways WMC 7.5k | BCE 5.8k | BofA Travel Rewards 9.1k | Chase Marriott Premier 13k | Citi TYP WMC 6.5k | Freedom Visa Sig 8k| Discover it 10k

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