Major cld on amex

[taxi818]

First of all. It's not my cards. But my brothers. He called me in panic this morning not knowing what to do. 

He has 3 Amex revolvers. Delta. 20k. $5300 balance. Mercedes 24.9k with 0 balance.  And. Bce. 2k with1500 balanceThe bce is on promo period for 0% in the next 15 months. . The last 3 months he was trying to refi his mortgage. Only owes 35k on 300. So lots of inquiries. He also purchased a used Rolex for 12k on one of his three 15k venture cards. Don't ask. Any way. Amex said based on his inquiries and lenders looking at his credit. They had to lower his limits and their risk. They told him they would raise the Delta back to 10k if he paid 2k of his balance by February 4th. The following are his new limits. 

Delta. 5900 limit. Balance 5300

mercedes 1k limit. 0 balance. 

Bce 1600 limit. 1500 balance. 

They also said. If he shows. Pay stubs. W2. Or tax returns. They would consider raising his limits. Never ever late. Also . 

His bank statement shows that he pushes 29k a month through it. But his income is only 40k. After expenses According to his actual tax returns. . I told him I don't know what he should do but his scores will tank now. His total limits are about 100k before cld.  Now his usage will be High after losing a total of 48k in Amex limits. 

Im not sure his total debt other that what I said. For the experts. What is his next step? Taxi. 

[longtimelurker]

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@taxi818 wrote:

First of all. It's not my cards. But my brothers. He called me in panic this morning not knowing what to do. 

He has 3 Amex revolvers. Delta. 20k. $5300 balance. Mercedes 24.9k with 0 balance.  And. Bce. 2k with1500 balance. The last 3 months he was trying to re if his mortgage. Only owes 35k on 300. So lots of inquiries. He also purchased a used Rolex for 12k on one of his three 15k venture cards. Don't ask. Any way. Amex said based on his inquiries and lenders looking at his credit. They had to lower his limits and their risk. They told him they would raise the Delta back to 10k if he paid 2k of his balance by February 4th. The following are his new limits. 

Delta. 5900 limit. Balance 5300

mercedes 1k limit. 0 balance. 

Bce 1600 limit. 1500 balance. 

They also said. If he shows. Pay stubs. W2. Or tax returns. They would consider raising his limits. Never ever late. Also vans states. 

His bank statement shows get pushes 29k a month through. But his income is only 40k. After expenses. I told him I don't know what he should do but his scores will tank now. His total limits are about 100k before cld.  Now his usage will be Hugh after losing a total of 49k in Amex limits. 

Im not sure his total debt other that what I said. For the experts. What is his next step? Taxi. 

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A few questions to consider:

1) How badly does he need his scores.   I assume if he hasn't refinanced, then they are very important.

2) Then, can he pay the $2K?  This will help get back a little bit of the reduced CL

3) Probably should pay down the BCE ASAP.  The 75% utilization wasn't ideal, this is now much worse

4) Did he state income correctly when he applied?   If so, probably worth submitting pay stubs.    If not, then don't!

Where is the $29K a month coming from?

[creditguy]

I would say he has no choice other than to comply with what Amex wants if he wants his CL's restored. No way to know for sure what they will ultimately do with his limits once they get all his info, but I don't see any way around doing what they want of him. Best of luck, I hope for positive resolution.

[adelphi_sky]

Aren't there preventive messures one can take to avoid this? For instance, if you know you are about to take on a lot of inquiries whether it is to refi a mortgage or purchase a car, would it help if you notified the card companies first to let them know what is about to happen instead of them assuming you are scrambling for cash? 

[Themanwhocan]

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@adelphi_sky wrote:

Aren't there preventive messures one can take to avoid this? For instance, if you know you are about to take on a lot of inquiries whether it is to refi a mortgage or purchase a car, would it help if you notified the card companies first to let them know what is about to happen instead of them assuming you are scrambling for cash? 

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The preventative measures would be not to bring one card to 80% utilization, another to 75% utilization, a third to 27% Utilization, and this is just the cards that were mentioned.

A Large number of inquiries plus two cards maxed out is not a good combination.

[Anonymous]

12k for a USED watch that he put on a credit card?

[creditguy]

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@Anonymous wrote:

12k for a USED watch that he put on a credit card?

(Mod Cut)

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Well now that's not nice lol. But it does speak to ones priorities though. Charging a $12k used Rolex while carrying a good sized balance on another card is asking for trouble in more ways than one. 

[taxi818]

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@longtimelurker wrote:

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@taxi818 wrote:

First of all. It's not my cards. But my brothers. He called me in panic this morning not knowing what to do. 

He has 3 Amex revolvers. Delta. 20k. $5300 balance. Mercedes 24.9k with 0 balance.  And. Bce. 2k with1500 balance. The last 3 months he was trying to re if his mortgage. Only owes 35k on 300. So lots of inquiries. He also purchased a used Rolex for 12k on one of his three 15k venture cards. Don't ask. Any way. Amex said based on his inquiries and lenders looking at his credit. They had to lower his limits and their risk. They told him they would raise the Delta back to 10k if he paid 2k of his balance by February 4th. The following are his new limits. 

Delta. 5900 limit. Balance 5300

mercedes 1k limit. 0 balance. 

Bce 1600 limit. 1500 balance. 

They also said. If he shows. Pay stubs. W2. Or tax returns. They would consider raising his limits. Never ever late. Also vans states. 

His bank statement shows get pushes 29k a month through. But his income is only 40k. After expenses. I told him I don't know what he should do but his scores will tank now. His total limits are about 100k before cld.  Now his usage will be Hugh after losing a total of 49k in Amex limits. 

Im not sure his total debt other that what I said. For the experts. What is his next step? Taxi. 

---

A few questions to consider:

1) How badly does he need his scores.   I assume if he hasn't refinanced, then they are very important.

2) Then, can he pay the $2K?  This will help get back a little bit of the reduced CL

3) Probably should pay down the BCE ASAP.  The 75% utilization wasn't ideal, this is now much worse

4) Did he state income correctly when he applied?   If so, probably worth submitting pay stubs.    If not, then don't!

Where is the $29K a month coming from?

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Well so far everyone turned him down on the Refi as the amount he wants is too low. I don't understand this. he wanted to pay off his watch and have a little extra.

Yes he can pay off the 2k but he said he is not going to do it.

He will pay half of the BCE. from what he said.

His income according to his taxes is not correct. He told me he put down his actual income which is about 85k a year. on his tax return it only shows 40k as he is self employed. Did not want to pay to much. The 29k per month is from his business. It is credit card sales that goes thru his account each month. But that is not actual profit. It is just total sales. So it looks like he has tons of cash according to his bank records. But after expenses for everything he is only seeing about 6k per month in reality. There are no pay Stubs. But bank records for sure.

[taxi818]

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@creditguy wrote:
I would say he has no choice other than to comply with what Amex wants if he wants his CL's restored. No way to know for sure what they will ultimately do with his limits once they get all his info, but I don't see any way around doing what they want of him. Best of luck, I hope for positive resolution.

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He said he will try and show them. But they did not ask for 4506-t. They just want some basic info about his income.

[taxi818]

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@adelphi_sky wrote:

Aren't there preventive messures one can take to avoid this? For instance, if you know you are about to take on a lot of inquiries whether it is to refi a mortgage or purchase a car, would it help if you notified the card companies first to let them know what is about to happen instead of them assuming you are scrambling for cash? 

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Don't think if you are shopping around there is a way to prevent. I think they just saw his high credit card usage and the constant apping for the last 10 months. and they have had enough. Im not sure as i don't want it to happen to me either.