Only a $500 starting CL with Amex, really?

[parakleet]

Your AAoA will be affected regardless of you canceling the card. As others have said, the damage to your AAoA is done. I don't know why people think that "cancelling" the card will have no effect on the AAoA. If you use the card right, you could potentially get CLI from $500 --> $1500 --> $4500 --> $13,500 in little over a year.

[09Lexie]

Between the high number if inq's and thin file, I am not surprised with the initial CL. Although you are eligible for a CLI after 61 days, there is no guarantee you'll receive it until your overall credit profile improves.

Although inq's are a temp ding, on a thin file they may look like you are credit hungry. Your thin file will not show a long history of payments , just lots of new accounts.
Keep the card, do not app for any new TLs and request your CLI in 61 days. If denied, try again in 90 days. You've locked in your MSD and that alone is reason to keep the account.

Congratulations on your approval.

[VegasKyle]

Looking at the info you provided I'd say be happy you got approved. AMEX revolvers can be tough to get for a lot of people and the backdating alone is worth being excited about.

I don't see the advantage of closing the card and trying later to be approved(adding 1 or more inq) with no guarantee of success or CLI vs. keeping the card and growing the limit over time.

[Pat94108]

I wouldn't close it. I'd say use it and work on it. Three months, you can get a higher CL. You will have a HP so you might as well keep it.

[wolverine1975]

Ahhh..thanks for clearing that up for me, as I was under the assumption that if it never makes it to your reports, that it would have no effect on the AAOA. If I had already understood how this all worked, I wouldn't have even been asking about possibly canceling. And for clarification, I don't have a sense of entitlement, I just thought maybe something like this had happened to someone else. And you all being the credit experts y all are, could lend me some guidance.  Having said that...I'm gonna keep the account and go to the garden, maybe forever! lol Hopefully it'll grow nicely,  and not be stuck @ the initial limit as a previous poster hinted at. Thanks guys for all your help. 

[09Lexie]

Good choice.

[codimom]

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@wolverine1975 wrote:

@Ahhh..thanks for clearing that up for me, as I was under the assumption that if it never makes it to your reports, that it would have no effect on the AAOA. If I had already understood how this all worked, I wouldn't have even been asking about possibly canceling. And for clarification, I don't have a sense of entitlement, I just thought maybe something like this had happened to someone else. And you all being the credit experts y all are, could lend me some guidance.  Having said that...I'm gonna keep the account and go to the garden, maybe forever! lol Hopefully it'll grow nicely,  and not be stuck @ the initial limit as a previous poster hinted at. Thanks guys for all your help. 

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I think you chose wisely.  I truly believe that tending that amex in the garden will help fatten your file over time.

[navigatethis12]

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@wolverine1975 wrote:

It's just that I hear on these forums that having small limit cards on your reports, doesn't look good in the eyes of future lenders. I really don't want to add another, as I already have 2 reporting Capital One (650), Merrick Bank (500) and going up to 1000 in November. Let's say I decide to cancel,  I would only be hit for the inquiry (7-10) points perhaps. But...If it reports, then the AAOA comes into play. I'm not sure the small limit is worth it.  Is there any chance for an initial higher limit recon?

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I have a few small limits and they haven't hindered me from getting high limits at all.

[injustifiiable]

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@navigatethis12 wrote:

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@Luscher wrote:
Ya but i still prefer the amex cli policy over anybody else. It is ALWAYS a soft pull and you can get up to 3x your amount. I can go to discover or chase and ask for a cli and waste a hard pull and i could get nothing.

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With Chase you could go from 1000 to 10,000; American Express will not allow that. The three times possibility may be good for some people, but in some situations, it's a restriction.

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3X with a soft is a pretty big deal if you ask me. With Chase, if I'm taking a hard pull, I'd sure hope to get $10K if I asked for it and my credit profile warranted it.

[longtimelurker]

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@injustifiiable wrote:

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@navigatethis12 wrote:

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@Luscher wrote:
Ya but i still prefer the amex cli policy over anybody else. It is ALWAYS a soft pull and you can get up to 3x your amount. I can go to discover or chase and ask for a cli and waste a hard pull and i could get nothing.

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With Chase you could go from 1000 to 10,000; American Express will not allow that. The three times possibility may be good for some people, but in some situations, it's a restriction.

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3X with a soft is a pretty big deal if you ask me. With Chase, if I'm taking a hard pull, I'd sure hope to get $10K if I asked for it and my credit profile warranted it.

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Again, UP to 3x.  And you can also get 0 with Amex.  Yes, SP rather than hard, but SP vs HP isn't huge unless you a doing a lot (and you can only do it every 6 months after the first with Amex).  For some, being able to get >3x would be a bigger deal.

Not that I am saying Amex is bad, but it's not quite as all-encompassing-wonderful as some of the adherents would have as believe!