topic Re: Amex imposed spending limit in Credit Cards

Amex imposed spending limit

Anonymous — Thu, 24 Sep 2015 18:00:43 GMT

So I just got an email from Amex that they have imposed a spending limit on my platinum account, which previously had no limit. I don't particularly mind, it's not a big deal-- I have other cards with high limits that I can use if I need, but I'm just not familiar with this-- will they start to report a limit on my credit report, or is this like an internal limit? And, did they choose to do this for some particular reason, and will they lift it, etc? Thanks!

Re: Amex imposed spending limit

Open123 — Thu, 24 Sep 2015 18:02:16 GMT

No won't report, but based on their "internal" risk models. Basically, decided by their computer algorithms.

Re: Amex imposed spending limit

Anonymous — Thu, 24 Sep 2015 18:03:59 GMT

It's an internal limit, and you actually already had one. No preset limit does not mean unlimited. All charge card holders have some kind of limit, which varies by profile and spending pattern.

Re: Amex imposed spending limit

Anonymous — Thu, 24 Sep 2015 18:06:21 GMT

Ok. Well. Actually, I would prefer to always know what my limit is anyway. So this is good. But my email told me what my limit is, but my account doesn't seem to show it online. Not a big deal. It is interesting though because my spending limit is not as high as I've spent before-- was I just spending too much perhaps and they got nervous? Like I said, I actually do prefer to know instead of always wondering, but I simply have no idea how they calculated it.

Re: Amex imposed spending limit

Skye12329 — Thu, 24 Sep 2015 18:30:28 GMT

You can check hour limit by clicking 'check spending ability' a hard limit will not show online. The thing about the spending limit is that it can change whenever it wants. So one day you could be approved for 30k and the next day only 20k.

Re: Amex imposed spending limit

Anonymous — Thu, 24 Sep 2015 18:38:40 GMT

Thats crazy! Is the amount close to your other cards limits?

Wonder how bad it would look with amex if I went on there and checked my spending ability on my 2 credit cards and then my charge card.

Re: Amex imposed spending limit

Anonymous — Thu, 24 Sep 2015 18:39:28 GMT

Recent large changes in your card usage (Amex and non-Amex; Amex regularly softpulls) could be the cause. Not a biggie, if you maintain low utilization. Amex will eventually relax the limit as it adjusts to your spending patterns.

Another possibility is some baddies (and/or old ones updating) and/or overly stressing your credit profile, such as frequent high utilization / maxing out cards (~75%+).

If this is an Amex charge card (or you have another one which is), and are often using the pay over time option for purchases instead of paying in full, that can lead to account review / stricter limits.

On the bright side, use this as an opportunity to diversify your cards well across different issuers, if you haven't already, and scrutinize your credit reports and spending patterns.

Re: Amex imposed spending limit

Open123 — Thu, 24 Sep 2015 18:42:11 GMT

@Anonymous wrote:
Ok. Well. Actually, I would prefer to always know what my limit is anyway. So this is good. But my email told me what my limit is, but my account doesn't seem to show it online. Not a big deal. It is interesting though because my spending limit is not as high as I've spent before-- was I just spending too much perhaps and they got nervous? Like I said, I actually do prefer to know instead of always wondering, but I simply have no idea how they calculated it.

According to their internal risk metrics, it's prudent to place a hard limit on your Platinum. Not sure if it makes them "nervous," but it does appear, rightly or wrongly, they want to reduce risk on your account. It is unusual for a Charge card to have a hard limit.

Re: Amex imposed spending limit

Anonymous — Thu, 24 Sep 2015 18:47:47 GMT

@Open123 wrote:
@Anonymous wrote:
Ok. Well. Actually, I would prefer to always know what my limit is anyway. So this is good. But my email told me what my limit is, but my account doesn't seem to show it online. Not a big deal. It is interesting though because my spending limit is not as high as I've spent before-- was I just spending too much perhaps and they got nervous? Like I said, I actually do prefer to know instead of always wondering, but I simply have no idea how they calculated it.
According to their internal risk metrics, it's prudent to place a hard limit on your Platinum. Not sure if it makes them "nervous," but it does appear, rightly or wrongly, they want to reduce risk on your account. It is unusual for a Charge card to have a hard limit.

I just want more info for data points. LIke amount of utilization, credit scores, and how much spending we are talking about. It sounds like there may be some really high purchases along with other high amounts on other credit cards. Whatever the case, I don't know if I want to get the same email.

Re: Amex imposed spending limit

Open123 — Thu, 24 Sep 2015 18:57:27 GMT

@Anonymous wrote:
I just want more info for data points. LIke amount of utilization, credit scores, and how much spending we are talking about. It sounds like there may be some really high purchases along with other high amounts on other credit cards. Whatever the case, I don't know if I want to get the same email.

When it comes to NPSL, Amex does this better than anyone else. Their internal risk models (not infallible) are incredibly accurate when it comes to the NPSL set for each cardmember.

While no one except for Amex knows how the NPSL decided, I'd surmise it's based on a combination of the following: (1) income; (2) assets known to them; (3) spend and payment patterns; and, (4) amount charged and PAID with other creditors. With the data, from their end, they'll take a rolling 6 month average of charges, and multiply that by 2X, 3X, or whatever multiple they find appropriate to comprise the NPSL. It's never a hard limit; not even their Revolvers are "hard" limits. If you charge way above it, they may speak with you before deciding to approve the charge.

Unless there's some significant deviation from your historical charging patters, I doubt you'd receive this email or have a hard limit imposed.

Re: Amex imposed spending limit

youdontkillmoney — Thu, 24 Sep 2015 19:13:09 GMT

What was your imposed limit that was sent to you?

I checked online and mine typically ranges from $100,000 - $125,000 but never received any letter from AMEX formaliznig this explicitly without me asking.

Re: Amex imposed spending limit

Anonymous — Thu, 24 Sep 2015 19:53:55 GMT

@Open123 wrote:
@Anonymous wrote:
I just want more info for data points. LIke amount of utilization, credit scores, and how much spending we are talking about. It sounds like there may be some really high purchases along with other high amounts on other credit cards. Whatever the case, I don't know if I want to get the same email.
When it comes to NPSL, Amex does this better than anyone else. Their internal risk models (not infallible) are incredibly accurate when it comes to the NPSL set for each cardmember.

While no one except for Amex knows how the NPSL decided, I'd surmise it's based on a combination of the following: (1) income; (2) assets known to them; (3) spend and payment patterns; and, (4) amount charged and PAID with other creditors. With the data, from their end, they'll take a rolling 6 month average of charges, and multiply that by 2X, 3X, or whatever multiple they find appropriate to comprise the NPSL. It's never a hard limit; not even their Revolvers are "hard" limits. If you charge way above it, they may speak with you before deciding to approve the charge.

Unless there's some significant deviation from your historical charging patters, I doubt you'd receive this email or have a hard limit imposed.

"amount charged and PAID with other creditors." Theres no way that I am aware of that any creditor can see amount charged and paid with other creditors.

I look on my reports and it shows if a balance was reported, not always the exact payment amount.... it does not show anything of use.

What is it that I am missing? Because if a person always paid before statement cut date amex would have no idea other than the total credit line...

And also am I correct in stating that the amount charged over the credit limit on an amex credit card is treated like a charge card and that portion plus the minimum payment must be paid by the due date?

Re: Amex imposed spending limit

Anonymous — Thu, 24 Sep 2015 20:00:14 GMT

@youdontkillmoney wrote:
What was your imposed limit that was sent to you?
I checked online and mine typically ranges from $100,000 - $125,000 but never received any letter from AMEX formaliznig this explicitly without me asking.

Wow, is 100k+ normal for the Plat?

Re: Amex imposed spending limit

Anonymous — Thu, 24 Sep 2015 20:01:21 GMT

@Anonymous wrote:
@Open123 wrote:
@Anonymous wrote:
I just want more info for data points. LIke amount of utilization, credit scores, and how much spending we are talking about. It sounds like there may be some really high purchases along with other high amounts on other credit cards. Whatever the case, I don't know if I want to get the same email.
When it comes to NPSL, Amex does this better than anyone else. Their internal risk models (not infallible) are incredibly accurate when it comes to the NPSL set for each cardmember.

While no one except for Amex knows how the NPSL decided, I'd surmise it's based on a combination of the following: (1) income; (2) assets known to them; (3) spend and payment patterns; and, (4) amount charged and PAID with other creditors. With the data, from their end, they'll take a rolling 6 month average of charges, and multiply that by 2X, 3X, or whatever multiple they find appropriate to comprise the NPSL. It's never a hard limit; not even their Revolvers are "hard" limits. If you charge way above it, they may speak with you before deciding to approve the charge.

Unless there's some significant deviation from your historical charging patters, I doubt you'd receive this email or have a hard limit imposed.
"amount charged and PAID with other creditors." Theres no way that I am aware of that any creditor can see amount charged and paid with other creditors.

I look on my reports and it shows if a balance was reported, not always the exact payment amount.... it does not show anything of use.

What is it that I am missing? Because if a person always paid before statement cut date amex would have no idea other than the total credit line...

And also am I correct in stating that the amount charged over the credit limit on an amex credit card is treated like a charge card and that portion plus the minimum payment must be paid by the due date?

Almost all of my cards report the highest balance hit, even if it's mid statement and paid before the statement cuts. The exception, interestingly enough, is Amex which is reporting $21 when the actual was $1025.

Re: Amex imposed spending limit

MyDataMyChoice — Thu, 24 Sep 2015 20:01:23 GMT

Happened to mine the other day too... not a big deal

They set a 2,000 Limit on the Green Business (and it lets 3,000 no problem tho)

it does show online there is not a 'available credit' area...when i get up to 3,000 they send an email telling me to make a payment

My Gold Personal card has a 2,000 limit too

and ive had the cards for 8 months... Ficos are not great.. and a lot of utilitzation on a lot of accounts...

and MANY MANY Inquiries since approval... so Its no big deal...

Re: Amex imposed spending limit

TrueGeminiNC — Thu, 24 Sep 2015 22:07:01 GMT

@Anonymous wrote:
So I just got an email from Amex that they have imposed a spending limit on my platinum account, which previously had no limit. I don't particularly mind, it's not a big deal-- I have other cards with high limits that I can use if I need, but I'm just not familiar with this-- will they start to report a limit on my credit report, or is this like an internal limit? And, did they choose to do this for some particular reason, and will they lift it, etc? Thanks!

This happened to me when my account was about 6 months old. WIthin a few months - it was removed by request.

Re: Amex imposed spending limit

BigOuch — Thu, 24 Sep 2015 22:58:56 GMT

I thought hitting that spend availability button too often could trigger a financial review audit. Maybe that was just urban legend. Amex actually tried to FR my business account. I kind of inadvertantly ignored the letters and emails, and after a while it just went away. Not that I recommend that approach, but who has the time? Still have a $200k+/month spend availability on the business account, so I think all went well.

If you're stressed about the hard limit, you could always ask for a FR. Just keep in mind that it's about as fun as an IRS audit. You will need your most recent tax return, statement of income, or better yet, have a CPA peronsal financial report. Kind of a pain in the ass, but an FR will often trump a hard limit imposed by an imperfect Amex algorithm (assuming your affairs are in order). The other approach is just to hit your limit and pay it off before the statement closes. Do that a couple times and it may be automatically removed, as they see you're easily clearing balances multiple times a cycle.

Re: Amex imposed spending limit

SouthJamaica — Thu, 24 Sep 2015 23:09:50 GMT

@Anonymous wrote:
So I just got an email from Amex that they have imposed a spending limit on my platinum account, which previously had no limit. I don't particularly mind, it's not a big deal-- I have other cards with high limits that I can use if I need, but I'm just not familiar with this-- will they start to report a limit on my credit report, or is this like an internal limit? And, did they choose to do this for some particular reason, and will they lift it, etc? Thanks!

Amex is a scary company. I tread very lightly with them, and never want to depend on them for anything. I keep my usage very light and pay them back very fast.

One day I check my spending ability and it's 50k; the next day it's 25k. With absolutely no change in anything. Both 25k and 50k are ridiculous numbers for a small spender like myself. I have no idea where they came up with such figures.

No way would I ever make a big purchase using that card. I only make purchases I can pay back very easily and very quickly.

Even on their credit cards with fixed limits, they'll one day -- out of the blue -- drastically lower someone's credit limit, without ever even notifying the customer, so that the card holder first learns about it when a transaction is declined.

Re: Amex imposed spending limit

Anonymous — Thu, 24 Sep 2015 23:53:54 GMT

@SouthJamaica wrote:
@Anonymous wrote:
So I just got an email from Amex that they have imposed a spending limit on my platinum account, which previously had no limit. I don't particularly mind, it's not a big deal-- I have other cards with high limits that I can use if I need, but I'm just not familiar with this-- will they start to report a limit on my credit report, or is this like an internal limit? And, did they choose to do this for some particular reason, and will they lift it, etc? Thanks!
Amex is a scary company. I tread very lightly with them, and never want to depend on them for anything. I keep my usage very light and pay them back very fast.

Even on their credit cards with fixed limits, they'll one day -- out of the blue -- drastically lower someone's credit limit, without ever even notifying the customer, so that the card holder first learns about it when a transaction is declined.

True, unlike any other issuer, which is why we never see "Bank X cut my limit for no reason and didn't even let me know!" Oh wait, we do....

Re: Amex imposed spending limit

Open123 — Fri, 25 Sep 2015 02:59:25 GMT

@Anonymous wrote:
"amount charged and PAID with other creditors." Theres no way that I am aware of that any creditor can see amount charged and paid with other creditors.

I look on my reports and it shows if a balance was reported, not always the exact payment amount.... it does not show anything of use.

What is it that I am missing? Because if a person always paid before statement cut date amex would have no idea other than the total credit line...

And also am I correct in stating that the amount charged over the credit limit on an amex credit card is treated like a charge card and that portion plus the minimum payment must be paid by the due date?

Depending on the Issuer, when examined the hard copy of my CRAs, they listed the amount I paid. In today's data mining environment, it wouldn't surprise me if Amex had a way to easily factor in not only the amounts we charge on other cards, but the amount we pay. One of the often used reasons for an Amex decline has/had been, "amount paid too small," something along those lines.

Amex Revolvers limits aren't "hard" in the traditional sense. You can always go above the CL without penalty, but just have to pay that portion in full by the due date. In other words, you're free to charge above an Amex Revolver's CL without a fee/penalty, but you just can't carry the balance.