Threshold limit email for new Amex Platinum Card ...how common ?

[Andy77]

So I got my platimum card on 7/31.  Since getting it I have charged around 3500.00.  This morning I got this email:

Your account has no pre-set spending limit. Purchasing power adjusts with your use of the card and your payment history, credit record, financial resources known to us, and other factors.

The balance on your account is approaching a level where we may not be able to approve additional spending on your account. We would like to discuss your future spending needs and how we can meet them.

Please call us today at 1-800-230-1284 to discuss your account. A representative is available to assist you 24 hours a day, seven days a week.

So, I called in and we talked for a long time, I said I had planned to spend 5k this month and the lady said the card would only allow me to add 400.00 more to it, with the annual fee, so capping my spend this month to around 4500.00.  So I decided to make a 1500.00 pamynet today.  After the payment she said I could charge 2k more bringing my spend cap to 4700.00 this month

I asked how long this threshold woud stick around and she said a few months, until they see the payment history and usage on the card, makes sense to me

Question:

How common is this email/situation with a brand new charge card with Amex ?

My credit backstory...(since they said outside credit is one of the factors that goes into them approving the charges)

EX 661, avail credit 61k, 26k in balances, income around 325k, bk discharged sept 2009

[Xistaben2]

From what I am to understand, this is 100% for sure common.

the NPSL can be a loose term, but the internal limit that you were approaching fast is basically a failsafe for anyone looking to just rack up as much charges as they want and just default on them.

While I don't have much experience with charge cards, I believe the "spending power" as they call it will increase as you charge and make payments.  Putting close to $4000 worth of charges in about a week with no payment history with the card, naturally they will stop you at some point until payments are made and they get comfortable with the back and forth.

I'm sure the "spending power" initial limit is based off your credit report and income just like any revolver, but will probably loosen up much more quickly as you can show payment and spend.

[takeshi74]

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@Andy77 wrote:

How common is this email/situation with a brand new charge card with Amex ? 

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Not uncommon but it partially depends on one's credit profile and existing spend history with AmEx -- not just whether or not a charge card is new or not.  Another person could have no problems while yet another could run into the same thing.  It's not about how common or uncommon but about the specifics regarding the siutation.,

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@Andy77 wrote:

EX 661, avail credit 61k, 26k in balances, income around 325k, bk discharged sept 2009

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What model is that score?  A 661 is a bit low.  What are the reasons for it?  26K/61K is 43% which is above the generally suggested max of 30%.  The BK doesn't help either.  Any other items that would present risk to creditors?  New accounts aside from the chage card?  Given what you've provided so far this doesn't sound out of line for your credit profile.

[Anonymous]

I am also a new Amex Platinum member and I'm deliberately trying to keep my charges on the low side this month (around $1000 not including AF) to avoid spooking Amex. Once you build up a positive PIF history with them, they'll be much more flexible.

On my Amex Green card way back when (2004) the maximum they let me charge without a payment was around $5000. I burned them on this card and a Blue in my 2006 BK7 (around $8K total debt, but I had far lower income back then) so I am especially cautious now that they've let me back in the club!

[Anonymous]

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@Andy77 wrote:

So I got my platimum card on 7/31.  Since getting it I have charged around 3500.00.  This morning I got this email:

Your account has no pre-set spending limit. Purchasing power adjusts with your use of the card and your payment history, credit record, financial resources known to us, and other factors.

The balance on your account is approaching a level where we may not be able to approve additional spending on your account. We would like to discuss your future spending needs and how we can meet them.

Please call us today at 1-800-230-1284 to discuss your account. A representative is available to assist you 24 hours a day, seven days a week.

So, I called in and we talked for a long time, I said I had planned to spend 5k this month and the lady said the card would only allow me to add 400.00 more to it, with the annual fee, so capping my spend this month to around 4500.00.  So I decided to make a 1500.00 pamynet today.  After the payment she said I could charge 2k more bringing my spend cap to 4700.00 this month

I asked how long this threshold woud stick around and she said a few months, until they see the payment history and usage on the card, makes sense to me

Question:

How common is this email/situation with a brand new charge card with Amex ?

My credit backstory...(since they said outside credit is one of the factors that goes into them approving the charges)

EX 661, avail credit 61k, 26k in balances, income around 325k, bk discharged sept 2009

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OP, they did this to me on my PRG but limits was $1500 and i was ok with that, 1- 3xcli denied, 2- 3xcli denied and i called, well they told me that because it was a limit on my PRG all CLI will be denied until the release the limit in at least 6 months, the only option was closed the card, 2 weeks after i got my first 3xCLI on my BCE.

Just make sure your limit won't affect your CLI.

[Anonymous]

My AMEX shows member since 2006 because I was on my husband's account then and this is a new card to me. However with my platinum card, I've already racked it up for $3300 BUT on the first $2,000, I couldn't stand to see that much zeroes and debt so I paid it off. I don't know if that was a mistake or not since this is my first month (technically) with them ... but my statement cuts on 14th and I wanted to pay off the rest of the card before It reports and hurt my DTI. But I was told that I cant make anymore payment and I will have to do Billpay from my credit card which is what I'm planning to do now. I also played around the "Spending Power Limit" I tried $10,000 and it was a no go and then tried $7,000 and said it will be approved. So I kinda have an idea how much my internal limit is before getting myself to "Declined".... Like everyone says on here, history will improve that internal limit for sure

[Anonymous]

Amex is so stingy with their limits. How the heck do you give someone with a 325K income and your second best credit card only a $4500 limit?! Smh

[Andy77]

This is not my hard limit, just for clarification...this is my impossed soft limit, right now, on my new Amex Charge card

[Discover2016]

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@Andy77 wrote:

So I got my platimum card on 7/31.  Since getting it I have charged around 3500.00.  This morning I got this email:

Your account has no pre-set spending limit. Purchasing power adjusts with your use of the card and your payment history, credit record, financial resources known to us, and other factors.

The balance on your account is approaching a level where we may not be able to approve additional spending on your account. We would like to discuss your future spending needs and how we can meet them.

Please call us today at 1-800-230-1284 to discuss your account. A representative is available to assist you 24 hours a day, seven days a week.

So, I called in and we talked for a long time, I said I had planned to spend 5k this month and the lady said the card would only allow me to add 400.00 more to it, with the annual fee, so capping my spend this month to around 4500.00.  So I decided to make a 1500.00 pamynet today.  After the payment she said I could charge 2k more bringing my spend cap to 4700.00 this month

I asked how long this threshold woud stick around and she said a few months, until they see the payment history and usage on the card, makes sense to me

Question:

How common is this email/situation with a brand new charge card with Amex ?

My credit backstory...(since they said outside credit is one of the factors that goes into them approving the charges)

EX 661, avail credit 61k, 26k in balances, income around 325k, bk discharged sept 2009

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It will grow with time, Amex just needs time to see payment history, for example, I have had my Amex Green for a little over a year and my income is only around 25% of yours but my approved purchase power on my green is $25,000. 

[Ghoshida]

Since AMEX is only offering you a $1k limit on their revolver, they are also concerned about your charges on the charge card too. 

The practice that AMEX starts with a small limit then increases it over time is well known.

I never saw this email because I probably never charged as close to my internal limit on my PRG. 

I would also check the spending limit once every month to see the progress.

Since you already started paying, this will positively affect AMEX's algorithm and you should get a higher spending limit next month.