Major cld on amex

[taxi818]

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@Themanwhocan wrote:

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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.

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I do agree and when he purchased the watch i said why. He said it was his dream. So he got it. Keep in mind he put that on a Venture Card. 17.90% apr. No promo period. They did not hit him the first 2 months. Now his minimum payment is $333 on the watch. I think he told me almost $200 in monthly interest. So he wanted to do a BT. Until this happened.

[taxi818]

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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 he had the Watch appraised at a Major Jewelry Store. They appraised the watch at 32k. So in his mind it is a bargain. A rolex presidential. New value is 48k. So he can always get his money back. But i do agree. i would never have done it. Where can you wear it and most will think it is a fake anyway. Although it is not.

[tiger_uppercut]

If that's true, I'd sell that watch in a heartbeat and solve all my problems. You can always get a rolex later when you're debt-free. 17.9% interest is a killer. Hope he figures it out. Good luck to him.

[CreditCuriosity]

Sorry to hear about your brothers situation.. As you know the High utilization's on both Amex cards and non-amex cards along with the inquires is what caused this along probably with what he put as his income with Amex although still confused if he put 40k as income with Amex or 85k as income with Amex?  If 40kish then yes they are going to protect their arse as the 12k rolex along with the with holding considerable balance with Amex is what did it and not sure what he had on his other cards as well?  Least his accounts are still opened at not a full blown FR yet being froozen accounts.. I wish him the best and please let us know the final outcome when you know.

How long has he had considerable balance with Amex and Cap1?  Very short time or over a long period of time and has he been paying like 5x min at least on all accounts type scenario? 

[tntexans72]

That's a slippery path he is heading down obviously but that's his CL and responsibility. The high Venture SL a lot of people are getting enable one thing and that is to get you to spend the $ and not be able to pay it all back. Cap1 can capitalize on the interest. But we all know that right? I think it's in the right of Amex to CLD. They lost Cosco and they are looking to bring in revenue from other sources and if they think you are racking up charges too quickly and get over your head... thus the CLD. We talked about banks like Barclays, etc...being fickle, Amex is no different. Data point for us all. 

[taxi818]

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@CreditCuriousity wrote:

Sorry to hear about your brothers situation.. As you know the High utilizations on both Amex cards and non-amex cards along with the inquires is what caused this along probably with what he put as his income with Amex although still confused if he put 40k as income with Amex or 85k as income with Amex?  If 40kish then yes they are going to protect their arse as the 12k rolex along with the with holding considerable balance with Amex is what did it and not sure what he had on his other cards as well?  Least his accounts are still opened at not a full blown FR yet being froozen accounts.. I wish him the best and please let us know the final outcome when you know.

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He did not have high Util on both Amex Cards. His limit with Delta was 20k. he was only using 5300. The mercedes at 24.9k. was at 0 balance. and the BCE with 2k limit was high at 1500 but with 0% promo rate for 15 months. The Actual 1500 was a BT to the BCE from the Rolex watch to lower his interest just a little. Note. He did try to move some limit from the mercedes to the BCE with the 0% rate. But they said no go a couple months back. So he was stuck with the high interest on the Venture Card. Also he has 3 15k venture cards. only 1 has a balance and that is the Actual Rolex. I really don't think he actually cares at this point since he has his watch. I think his total Debt is probably around 20k. So now with 53k in total limit left. im sure his scores will crash. Not much can be done other than sending in the Bank Statements i guess. Looks like  he is not receptive to paying 2k of the $5300. I don't know why. but he said why are they blackmailing him to have a limit on the books and not use it.

[taxi818]

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@tiger_uppercut wrote:

If that's true, I'd sell that watch in a heartbeat and solve all my problems. You can always get a rolex later when you're debt-free. 17.9% interest is a killer. Hope he figures it out. Good luck to him.

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He was debt free until he bought the damn Rolex. In my Mind I think it all started when i told him about the Venture Cards. He actually Got two of them within 10 days of each other. They called an verified that he apped them and gave him both. 2 months later he got the 3rd. all 3 at 15k. So I told him about the Amex way of doing things and he got those increased as well. In fact im really in shock they he was able to grow everything so fast in the last 12 months. As he had filed a BK in 2011. and all was discharged. He did not burn Amex. But he did burn Citi and Chase. all included in BK.

[CreditCuriosity]

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@taxi818 wrote:

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@CreditCuriousity wrote:

Sorry to hear about your brothers situation.. As you know the High utilizations on both Amex cards and non-amex cards along with the inquires is what caused this along probably with what he put as his income with Amex although still confused if he put 40k as income with Amex or 85k as income with Amex?  If 40kish then yes they are going to protect their arse as the 12k rolex along with the with holding considerable balance with Amex is what did it and not sure what he had on his other cards as well?  Least his accounts are still opened at not a full blown FR yet being froozen accounts.. I wish him the best and please let us know the final outcome when you know.

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He did not have high Util on both Amex Cards. His limit with Delta was 20k. he was only using 5300. The mercedes at 24.9k. was at 0 balance. and the BCE with 2k limit was high at 1500 but with 0% promo rate for 15 months. The Actual 1500 was a BT to the BCE from the Rolex watch to lower his interest just a little. Note. He did try to move some limit from the mercedes to the BCE with the 0% rate. But they said no go a couple months back. So he was stuck with the high interest on the Venture Card. Also he has 3 15k venture cards. only 1 has a balance and that is the Actual Rolex. I really don't think he actually cares at this point since he has his watch. I think his total Debt is probably around 20k. So now with 53k in total limit left. im sure his scores will crash. Not much can be done other than sending in the Bank Statements i guess. Looks like  he is not receptive to paying 2k of the $5300. I don't know why. but he said why are they blackmailing him to have a limit on the books and not use it.

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Well one card was basically maxed and another one at 30+% utilization.  How long was he floating those balances and bigger payments than min by a good margin?  This coupled with the big purchase on the Cap1 and high inquiries caused this alogn with probably doing a BT to Amex all added up to a perfect storm where Amex wasn't comfortable any longer.  It has happened though and wish him all the best to make the best of it as it could be worse and all the accounts could be froozen.  Wasn't trying to argue as you know me better than that, just stating what I see as obvious and Amex saw most likely as well...  This can happen to any of us, but certain behavior it is more likely to happen to some than others

edit: just saw the bk from 2011 as well and although he didn't burn amex, certainly that caught their eye.

[yfan]

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@Themanwhocan wrote:

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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.

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Yup. Now it looks like he ran up the credit cards he has and then went out looking for MORE credit - which if we are being honest is exactly what he did. To any lender this legitimately looks like someone who's living beyond their means.

[tiger_uppercut]

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@taxi818 wrote:

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@tiger_uppercut wrote:

If that's true, I'd sell that watch in a heartbeat and solve all my problems. You can always get a rolex later when you're debt-free. 17.9% interest is a killer. Hope he figures it out. Good luck to him.

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He was debt free until he bought the damn Rolex. In my Mind I think it all started when i told him about the Venture Cards. He actually Got two of them within 10 days of each other. They called an verified that he apped them and gave him both. 2 months later he got the 3rd. all 3 at 15k. So I told him about the Amex way of doing things and he got those increased as well. In fact im really in shock they he was able to grow everything so fast in the last 12 months. As he had filed a BK in 2011. and all was discharged. He did not burn Amex. But he did burn Citi and Chase. all included in BK.

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I thought he had a $5300 balance and a $1500 balance? He should have paid those balances off on the AMEXes first, especially with it accounting for 75% utilization on the BCE. And if his plan was to refi to get his hands on some cash to pay the Rolex, why didn't he just wait? Sorry sorry, I know you're not him and don't necessarily know why he did certain things, but $12k is a lot to charge up at once, especially when you have other balances. Credit card companies are fickle beasts - like a bunch of nervous elephants. It's dumb a lot of the time but sometimes it's very justified. If you have a BK on your file, it's indicative of financial missteps, and he should be aware of that if he's not already.

Also, he could have grabbed 1 QS instead of all 3 Ventures. The QS has a 0% APR promo at least. Regardless, thank you for the information, its always good to know how credit card companies react to certain things. Even if he's pissed at AMEX, paying off that BCE will help his scores and give him more options (especially if they restore hsi CL). I know it's easy to get pissed off, but you should try to convince him to reconsider. It's not personal for AMEX, but it will be for him and his scores.