Does AmEX usually start you with a low CL?

[Anonymous]

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@Anonymous wrote:

Another quick question, Did you ask for the CLI at 60 days or was it automatic? Is it a SP or HP? 

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You have to ask for it either via phone or online at 61 days.  It's an SP but keep in mind the CLI is not guaranteed and many people are declined on the first attempt.  If you're declined, you can try again in 91 days.  If you're approved, you can try for another one in 181 days

[mongstradamus]

I have had two different experiences with my amex applications, i had an decent initial CL for when i got my edp it was around 9k, but when i initially applied for BCP an few years ago i got an really tiny CL i think it was around 1k . I will admit when i did apply for the BCP my credit file was quite slim so maybe amex was scared off by that.

[Jarrodpd]

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@Anonymous wrote:
Thanks for your reply Captool. I am away from my computer for a few hours but I will look at your signature tonight. I thought it seemed low to me considering I have only applied for 2 other cc in the past 6 months. All of my scores are greater then 800 and my credit dates back to 20 years with my mortgage. I have student loans, auto loans, and an installment loan all with positive payment history. The only debt I have right now is my mortgage, car payment, student loan, and less then 9% total util on 2 cc which are always PIF. I have only been using my Discover and Cap Qs since I earn rewards on those.
I guess I will just wait the 60 days and go from there.

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You should be good to go, using myself as a data point; In 2014 when I apped for my HHonors card I reported my income being $8k and was approved with a limit of $2.7k, my scores were low 700's and only had 2 INQ's for credit cards on my reports with my oldest card being 1yr 7months and the other only being about 8months. Fast forward to the follwing December after spending quite a bit of money in that 2 1/2month period I did the 3x cli thing and had my limit raised to $8.7K. Also your Amex can go over its limit assuming they think you are able to pay your bill, I would probably recommend checking your spend ability and if its higher than your limit I would go over it and pay it in full and that could speed up or solidify the process for a CLI.

[Anonymous]

My AmEx Everyday started at $500 when I got it April 2015. Look in my signature and it's still $500. I failed the CLIs and haven't tried since January as I gave up on the card as it was just to get 'in' with AmEx to get the better cards.

I aquired a $1000 SPG and a $1000 Gold Delta in March. I'll concentrate all my CLI attempts towards these now.

My wife applied for an SPG card and got $10k right off the bat. 

I'll get there one day lol!

But it's all according to the profile I'm guessing 

[MyLoFICO]

I applied and got a SL of $0K. So your 2000 steps ahead of me. lol 

[takeshi74]

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@Anonymous wrote:

Does AmEX usually start you with a low CL?

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CL's aren't just a matter of the creditor or product but what one's credit profile and income qualify for.  For any creditor, your profile and income and possibly other factors are considered to determine the limit granted to you.  Everyone does not start out with the same CL with a given creditor and initial limits aren't always going to be the same either.

My first AmEx after getting through rebuilding -- about 3 years ago -- was issued with a $12.4K limit.  That was about half of what Chase approved me for each on 2 cards around the same time.  My second AmEx was issued with a $6.9K limit.  I was able to grow both AmEx credit cards to $25K each.  My 3rd AmEx was issued (within the past month) with a $25K limit.   YMMV depending on your profile, income, etc.

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@Anonymous wrote:

I was surprised when they only gave me a $2k CL. This seems so low in comparision to my other cards.

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You cannot simply assume what your limit should be on a new card based on the limits of your existing cards.  Limits factor into Revolving Utilization.  Revolving Utilization falls under Amounts Owed.  Amounts Owed is typically the second biggest factor for FICO scoring but it's not the only factor that matters.

http://www.myfico.com/crediteducation/whatsinyourscore.aspx

 Additionally, your FICO score isn't the only thing that matters either.  It's considered but it's just one consideration along with all the data in your report.  Given all that, it' should be apparent why you can't just look at limits on your cards.  They can be indicative but you can't assume such a simple and direct causal relationship.  As an example, I've had a number of cards well into the 5 digit range and have been issued very low starting limits on new cards due to recent activity and such concerns.

Each creditor has its own underwriting criteria and some can be more careful than others resulting in lower limits than another creditor.  However, you also need to consider that your credit when you apply for a new card isn't necessarily the same as when you applied for your older card(s).

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@Anonymous wrote:

I have very good credit. My utilization is always less then 10% and I PIF all my cards every month. Once in a blue moon if I have a 0% offer I will carry a small balance for a few months, but that is rare. I have a very long and thick file with zero derogs. The only thing I can think of is the 2 new accounts I opened 5 months ago, or my income. I didn't include my husbands, but mine is $58k. Should I have used his also? I did add him as an authorized user. I have never used income before and never recieved such a low CL.

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I'd guess recent activity.  With the FICO 8's in your signature you should be able to build that limit over time without much trouble IMO.

[Anonymous]

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@Anonymous wrote:

I was surprised when they only gave me a $2k CL. This seems so low in comparision to my other cards. I called CS and they told me I had to wait 60 days to request an increase. The rep I spoke to couldn't tell me why it was so low. Is this just normal for AmEX?

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You don't necessarily have to wait 60 days.  My wife was approved for the BCP last September with a SL of $3500, which was surprisingly lower than she got from other issuers.  We hit the CLI button for the 3x CLI as soon as the card was activated and she was approved for a new limit of $10,500.  We then waited the 181 days for the next one and got her a CLI to just under $25k in March.

The downside is approval is not automatic, and if denied you'll have to wait 91 days to try again rather than the 61 days you were planning to wait.  With your scores and profile I think you'd have a good shot.

Good luck with whatever you decide to do!  It's a great card for groceries and gas.

[wmweeza]

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@Anonymous wrote:

I just joined the forum today and I have a question. I am new to using credit cards for rewards. I have three cards that I have had for about 16 years, but I never used them for rewards. They were mainly for emergencies or the ocassional larger purchase that I wanted to pay for over 2-3 months. I came across a few blog articles on this subject and decided to apply for a few decent cash reward cards. Last November I apped for the Discover It and Cap 1 QS. Last week I decided to go ahead and app for the AmEx BCP because I spend the most on groceries and gas. I was surprised when they only gave me a $2k CL. This seems so low in comparision to my other cards. I called CS and they told me I had to wait 60 days to request an increase. The rep I spoke to couldn't tell me why it was so low. Is this just normal for AmEX?

I have very good credit. My utilization is always less then 10% and I PIF all my cards every month. Once in a blue moon if I have a 0% offer I will carry a small balance for a few months, but that is rare. I have a very long and thick file with zero derogs. The only thing I can think of is the 2 new accounts I opened 5 months ago, or my income. I didn't include my husbands, but mine is $58k. Should I have used his also? I did add him as an authorized user. I have never used income before and never recieved such a low CL.

Thanks.

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I think it depends on your profile, income etc.

My starting line is where it is now $22k. Now I'm not sure why they gave me that but the basics for me:

- HHI: $95,000 (my amount of income is a TINY fraction of that, most is my husbands)

- Util, usually 5%

- PIF every card every month

- I only charge about $200 a month (maybe they like that I'm so frugal?)

The good thing as others have stated is that yes, the card grows over time. I think you might be correct in that you only included your income, because otherwise your profile looks great!

[Anonymous]

Thank you for all of the additional input. I do realize that there are many factors that go into the decision that the banks make when giving you a starting CL. I am just trying to figure out their reasoning in giving me a $2k limit. I have read so many threads on this forum where people with much lower scores, less history, less income,and many more new accounts are getting $5k and even higher. I only have 2 inquiries on Ex and 1 on TU. I am just curious as to what factor caused their decision considering I have always been very careful and responsible with my credit. 

Maybe they don't think I will be profitiable for them because I PIF. They pulled my Experian report and it was at 7% util when they saw it. I have never used my husbands income when applying for credit cards, but maybe when I call them back at day 60 and ask for a CLI I will mention his $80k should be added to mine. The CSR I talked to told me to wait the 60 days so I will. It is fine. I will use the card pay it off 2-3 times a month and like many of you said the CL will grow. I am not one of those people that wants crazy high limits just because. I really just want to be able to use my card and be able to have it auto pay once a month without posting more then 3-5% utilization.

[Anonymous]

I don't think it's that they put thought into you will or won't be profitable re: carrying a balance. They make money on swipe fees too. They want you to use the card even if you PIF. 

You mentioned your income vs. HH income. If all the other obligations report on your credit reports, maybe it looks like you're debt heavy on your income alone. (Without exiting this post, I think there was mortgage, car loan, student loan and another loan, plus any CC balances at the time). Maybe not, but a possibility. 

Also could be the 2 newish accounts. 

My first (recent...had one in the 80's and I'm pretty sure I burned them in a BK) Amex was in 2013, the Costco TE. I think the starting limit was $1200. I was exstatic with that even though I had other higher limit cards. It grew with a couple auto CLI's to $4200 I think. 

When I found myFico I applied for a BCP and was approved for $5k last April. I did a CLI request when I got the card* and got it bumped to $15k. I then decided I wanted to switch from cash to MR. I would have been happy PCing the existing card, but they said no. So I went for the EDP in September (downgraded the other to the BCE) and only got $2k. I tried to transfer limit from my BCP, but they said no, it was too new. I transferred $3k from the TE so it was $5k and then when I was eligible for the CLI request in October, I got it to $15k. 

My TE was down at $1200 which wasn't a problem. But a couple months ago I got an auto 3x to $3600. I guess that's what I'll take with me to Citi. I'd hoped to get another CLI or transfer some over before the move, but I've read the cut off date for that happened. 

* Notice I got 3x when I received my card. The rules USED to be you had to wait 61 days. Then it changed to you can request 3x on activation. I'm not sure if it's really switched back or if you got an uniformed CSR. So, think through whether you want to just suck it up for two months and wait to do the 3x request. Or go for it when you get your card and then if you're denied, you have a 91 day wait instead of 61. (I'm sure someone will chime in whether 61 is the new norm or not. Or do some more research on your own before pulling the trigger.