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Credit line decrease

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Anonymous
Not applicable

Credit line decrease

Received a letter from AmEx a couple of weeks ago, saying that they've decreased my credit line limit radically. No warning BEFORE taking these actions, no rational explanations... I've never been late with any payments and no problems with my scores. Although I'm aware of that it's legal (they've got 30 days to inform me, right?), it just seems to me like the wrong order of doing things - and it's SO disrespectful.

Anyway - I'm putting together a report regarding how lenders handle these matters, and I've received several copies of other "credit line decrease info-letters" already; but I'll need more to get a strong case on behalf of all customers here. Anyone who has received a similar letter? If so, I'd love to see it!

 

Thanks!!!

Liz

Message 1 of 11
10 REPLIES 10
MidnightVoice
Super Contributor

Re: Credit line decrease

If you search the boards you will find several unhappy campers here!
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
Message 2 of 11
Anonymous
Not applicable

Re: Credit line decrease

I'm moving this thread to Credit Cards.  You'll likely get more responses there.
 
Message 3 of 11
Anonymous
Not applicable

Re: Credit line decrease

Although you may have no new derogatories that might have triggered this, there are a couple other triggers also.

Did you carry a balance on a card for an extended period of time and just recently pay it off? Did you have a spike in util with another lender by chance?
Message 4 of 11
Anonymous
Not applicable

Re: Credit line decrease

it's amex if you want to keep the relationship get used to it. only sure way to avoid amex aa is to not obtain an amex issued amex. sorry to hear, but you've just joined an exclusive club w/many members.
Message 5 of 11
mrlimo
Regular Contributor

Re: Credit line decrease

Sorry to hear of the decrease. I am still a happy camper with them. In fact on there Blue Sky card just gave me an increase by close to 30%.
 
Message 6 of 11
Anonymous
Not applicable

Re: Credit line decrease

I've heard very mixed things about Amex. When I first started using their cards it was because I heard they were a good company to have a relationship with. Now I'm not so sure, with their rapid fire CLD's and f/r's. But I'll continue to use their cards at least somewhat, since they provide my two largest credit lines...
Message 7 of 11
Anonymous
Not applicable

Re: Credit line decrease

Judging from the postings I've seen here, AMEX is great with customer care, and does offer some genuinely rewarding rewards programs. However, they're also rather skittish and paranoid, reducing credit lines and giving the dreaded financial review at the drop of a hat...or sometimes, with no clear reason at all. Kind of like a cat I have, that purrs and sits comfortably in your lap, rubbing up against your legs...and then, moments later, decides to use your back as a scratching-post.

I suppose it all depends on your perspective...if you use the card enough to actually benefit from the rewards, and you like piping large amounts of money through your credit-card account to rack up bonuses, then AMEX can be a good deal. If, on the other hand, you're just looking to build your FICO score and have access to moderate credit lines, there are far less skittish beasts to use for that burden.
Message 8 of 11
nathan
Frequent Contributor

Re: Credit line decrease

Here we go again with amex. Why folks still stick with amex remains a mistery to me. In my opinion the is the worst ccc with the most uhappy campers. They may give you $100k cl, but what good is it if you keep wondering when they will decrease it to $1328K?Insert Smileys
Message 9 of 11
Anonymous
Not applicable

Re: Credit line decrease

Same thing here Liz, got the letter long after  they dropped my CL down to just above my balance.  I reported them to BBB but that was mostly just because it felt good to do so.  I knew I wouldn't get anywhere having BBB going after them.
 
It used to be my fav acct but now it is in the sock drawer until I can BT to another card.
Message 10 of 11
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