Never leave a balance on AMEX

[steffiejoe]

For the first time ever I  called the number on the back of my Amex Clear card and requested a credit line increase. Denied due to my payment history.

I should have known better but I had to learn the hard way.

Background info:

I have the Clear AMEX with a $10, 600 limit. I have had this card since 2007. For the past year I have kept a balance between $800-$1000.00 on the card. Always paid more then the minimum amount due. Before this year I would PIF. I have only had one CLI since having this card 4 years.

I guess its true what they say never leave a balance on the AMEX cards. Lesson learned I have submitted a payment today paying the balance off.

[Ron1]

It's never a good idea to carry any balance with Amex especially high balance. I'm surprised they haven't decreased your credit limit. I wouldn't ask for any cli if I have any high balance with any creditor. They might close your account or CLD.

Ron.

[steffiejoe]

I guess I am lucky they have not done that. But to me  800-1000, is not that high of a balance. Lesson learned this is not a real revolving credit card. They want you to pay in full. From this day on I will use it like a charge card, PIF.

[xlr8d]

You typed 10,600 balance.. did you mean you have a 10,600 limit? or you are carrying a balance that big?

[steffiejoe]

sorry my credit limit is 10, 600. My balance was between 800-1000. I will correct the OP.

[clocktick]

Did you purposely leave $800-1000 on it instead of paying it off? 

[scottwagnon]

i still am one of those that seriously dont believe this idea that amex has an aversion to carrying a balance. i just think they are more sensitive about it. its about profitability and risk level.

[scottwagnon]

case in point.... however, here we are dealing with balance transfers. but here is amex's exact thoughts on this... this comes from amex's BT faq section.

Why would I want to do a balance transfer?
Most people do not pay off their credit cards in full each month, they "carry a balance." If you are carrying a balance on your other credit cards, balance transfers can save you a lot of money in Finance Charges. Why? Because when you transfer balances to your American Express Card Account, we can give you a lower promotional interest rate and a bigger credit line.

Why does American Express want me to do a balance transfer?
It's simple. If you bring us your business, we can afford to give you better terms. If you have no balances with us, we can't afford to give you a promotional rate or a higher credit line.

remember, this is not my word or opinion of what amex said. this is really what they have stated.

[android01]

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@scottwagnon wrote:

case in point.... however, here we are dealing with balance transfers. but here is amex's exact thoughts on this... this comes from amex's BT faq section.

Why would I want to do a balance transfer?
Most people do not pay off their credit cards in full each month, they "carry a balance." If you are carrying a balance on your other credit cards, balance transfers can save you a lot of money in Finance Charges. Why? Because when you transfer balances to your American Express Card Account, we can give you a lower promotional interest rate and a bigger credit line.

Why does American Express want me to do a balance transfer?
It's simple. If you bring us your business, we can afford to give you better terms. If you have no balances with us, we can't afford to give you a promotional rate or a higher credit line.

remember, this is not my word or opinion of what amex said. this is really what they have stated.

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+1.  Something like 15 out of 19 Amex products are revolvers.  My guess is that if they didn't want people to carry a balance, they would only offer charge cards.  

[cdtotten]

I have never had a problem carrying a balance on an AMEX revolver, and have had 3.  As long as I paid my bill on time, they didn't care. I even got a CLI once while carrying a balance. They want to earn interest income, or they go out of business quickly, so there shouldn't be an aversion to it.

Every person will have a different experience with AMEX, but to say that they don't want people to use their revolvers is simply incorrect. In AMEX' eyes, the BEST customer is someone who pays his bill off over time, but never misses a payment.