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Will my credit line be lowered instead of increased if I pay in full?

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Anonymous
Not applicable

Will my credit line be lowered instead of increased if I pay in full?

I recently started an ecommerce business with merchandise paid for with credit. I had a net revenue of $10,000 this month and was going to pay off my AmEx with a $10,000 limit (with a balance currently very near its limit) in full and then request a CLI.

However, I just read on this forum that AmEx has lowered the credit lines of some cardholders, and I do not want to risk that by paying off my balance in full. I always pay my cards on time, however a lot of them are near their limit right now because my business had a delayed start.

My business is now doing well, however it is still too new to apply for a loan which is why I am relying on credit. I do not mind paying them off in full and then being denied a CLI, but I need to maintain my current credit limits in order to pay for new merchandise and can not afford to have any lowered.

My credit score was perfect before I opened this business (a sole proprietorship) and I now have 5 credit cards in good standing but with high balances due to merchandise orders for the store.

What should I do?
Message 1 of 5
4 REPLIES 4
MidnightVoice
Super Contributor

Re: Will my credit line be lowered instead of increased if I pay in full?

CLIs seem to come fro carrying a large balance, so my gube to PIF as many as possible each month
The slide from grace is really more like gliding
And I've found the trick is not to stop the sliding
But to find a graceful way of staying slid
Message 2 of 5
biturbomunkie
New Contributor

Re: Will my credit line be lowered instead of increased if I pay in full?

after making two large payments in one billing cycle, AX doubled my CL. i'm planning on PIF this cycle and hopefully my CL will stay where it is.
Message 3 of 5
Anonymous
Not applicable

Re: Will my credit line be lowered instead of increased if I pay in full?

AMEX has been known to CLD accounts in similar situations. YMMV.
Message 4 of 5
Anonymous
Not applicable

Re: Will my credit line be lowered instead of increased if I pay in full?

I feel AMEX treats their biz accounts a little different-
 
Now if you carried this balance for awhile or somehow you have AMEX spooked then -YMMV
 
AMEX is well aware that in running a biz, you may be giving terms to your customers and it may take 30 to 60 days to pay off you account.  IMO- their internal scoring system CAN see this. 
Message 5 of 5
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