topic Re: Would Amex CLD for low usage? in Credit Cards

Would Amex CLD for low usage?

SouthJamaica — Sat, 18 Feb 2017 14:58:55 GMT

If I use an American Express credit card regularly, but at a very low utilization, would they reduce the credit limit, assuming all other things are OK?

Re: Would Amex CLD for low usage?

Anonymous — Sat, 18 Feb 2017 15:02:59 GMT

Nope.

Re: Would Amex CLD for low usage?

Anonymous — Sat, 18 Feb 2017 15:19:06 GMT

I have had my Blue for eons and I rarely use it. They have never touched my $10,500 credit line; either to raise it or to lower it. That doesn't mean other factors won't cause them to CLD us in the future if the economy has another downfall. For now though, you should be fine. They are pretty easy, easy like Sunday morning and Capital One.

Re: Would Amex CLD for low usage?

SouthJamaica — Sat, 18 Feb 2017 15:20:48 GMT

Thanks, Nixon and Co_Native

Re: Would Amex CLD for low usage?

kdm31091 — Sat, 18 Feb 2017 15:53:45 GMT

No one has a crystal ball but generally you don't hear of Amex doing this very often

Re: Would Amex CLD for low usage?

accidentalpancake — Sat, 18 Feb 2017 16:36:58 GMT

AmEx is only likely to do it if they have a reason to be proactive. They are one of the companies that would rather make sure that you are happy and have as much available credit as they're comfortable with, regardless of whether you're using it.

That's one of the bizzare things about some companies. If you reduce someone's CL because they don't use the card often, does that make them more or less likely to then begin using it in the future? I'd argue less likely, depending on the overall impact on CL and utilization. If I expect to make a large purchase, even if I'm going to PIF, I'm more likely to use a high limit card to minimize utilization impact in the case that it reports before PIF occurs. Besides, if I'm not using my CL, there's no impact to the company extending the credit. There's always a measure of risk that I might charge up $200k across all my accounts and move to Bolivia suddenly, but it's not very likely.

AmEx seems to understand this. Barclay's does not.

Re: Would Amex CLD for low usage?

Anonymous — Sat, 18 Feb 2017 16:45:25 GMT

If I knew exactly how Cenurion and Barclays reinvest their money globally, would be able to work for a competitor find the niche and be very successful. They operate completely differently and what they give and take away to the end user follows their own philosophies. Apparently with Barclay the low man on the totem pole is much more important.
I've said it multiple times Barclays act like a jealous girlfriend or jealous ex-girlfriend. When you have new accounts before Barclays or get them after you start your relationship… she go CRAY

Re: Would Amex CLD for low usage?

kdm31091 — Sat, 18 Feb 2017 16:57:10 GMT

Lenders only have so much money to allocate. Someone who never uses anywhere near their limit becomes a candidate for CLD with many lenders because they can then allocate the money to someone else. Not saying I always agree with it but that's the viewpoint of the lender

Re: Would Amex CLD for low usage?

Anonymous — Sat, 18 Feb 2017 17:43:24 GMT

Highly dependent on history with the bank.

Barclaycard is especially notorious for this, but the OP is asking about AX. -- I've personally been stringing along a Blue Sky with a 24K limit 2 for years with no sign of a CLD or even an attempt at one. I put the occasional CCT trial for $1 on it.

Re: Would Amex CLD for low usage?

Revelate — Sat, 18 Feb 2017 20:42:11 GMT

@Anonymous wrote:
Highly dependent on history with the bank.

Barclaycard is especially notorious for this, but the OP is asking about AX. -- I've personally been stringing along a Blue Sky with a 24K limit 2 for years with no sign of a CLD or even an attempt at one. I put the occasional CCT trial for $1 on it.

Think it's more dependent on the bank and their financial picture as KDM alludes to (fractional reserve banking and all), not sure user history really factors that much as it seems unlikely anyone would just start using a card heavily out of the blue unless their other cards got taken away from them... and is that the sort of consumer you really still want at that point?

I doubt we'll see CLD's from Amex anytime soon unless their financial picture is a lot worse this year than expected.

Re: Would Amex CLD for low usage?

willwar14 — Sat, 18 Feb 2017 21:43:43 GMT

My father has a $50k BCP that hasn't been used in over a year, it does have a $75 annual fee that we just paid but other than that no other activity.

Re: Would Amex CLD for low usage?

wasCB14 — Sat, 18 Feb 2017 22:08:49 GMT

@willwar14 wrote:
My father has a $50k BCP that hasn't been used in over a year, it does have a $75 annual fee that we just paid but other than that no other activity.

Why not PC to BCE or something? BCP isn't exactly a perk-only card.

Re: Would Amex CLD for low usage?

austinguy907 — Sat, 18 Feb 2017 22:13:15 GMT

I can say low use isn't an issue with them. I use mine for a couple of monthly bills and they went from 10K to 30K to 50K w/o any issue. I'm thinking about giving them another nudge next month to see how far they'll go with a low spender like me. I would be shocked if they were willing to go to 100K or 150K. IIRC they go to 100K on a personal line from someone elses post on here.

Re: Would Amex CLD for low usage?

wasCB14 — Sat, 18 Feb 2017 22:38:23 GMT

@austinguy907 wrote:
I can say low use isn't an issue with them. I use mine for a couple of monthly bills and they went from 10K to 30K to 50K w/o any issue. I'm thinking about giving them another nudge next month to see how far they'll go with a low spender like me. I would be shocked if they were willing to go to 100K or 150K. IIRC they go to 100K on a personal line from someone elses post on here.

User Pooka89, an Amex employee, has mentioned seeing limits on revolvers as high as $1M. Limits over $100k are common for their elite customers.

Re: Would Amex CLD for low usage?

austinguy907 — Sat, 18 Feb 2017 22:47:32 GMT

Hmm... $1M sounds tasty! I think I'll just shoot for another 3X and see what happens. I've already done the 4506 on the last one so, shouldn't be anything new to bump it up there or counter to my personal max. I did some googling of course and it's not posted anywhere that's easy to find. Found a bunch of old threads talking about the the $35K number which obviously isn't the case if you're willing to push. Found some oddball myth sites with the whole $25K+ resutls in an actual FR instead of just a verification. I know I'm not setting a new record by any means so it's more for the data points really at this point. Maybe I'll shut down some of my useless cards that are just maintained for age at this point.

Re: Would Amex CLD for low usage?

SouthJamaica — Sat, 18 Feb 2017 23:28:16 GMT

@austinguy907 wrote:
Hmm... $1M sounds tasty! I think I'll just shoot for another 3X and see what happens. I've already done the 4506 on the last one so, shouldn't be anything new to bump it up there or counter to my personal max. I did some googling of course and it's not posted anywhere that's easy to find. Found a bunch of old threads talking about the the $35K number which obviously isn't the case if you're willing to push. Found some oddball myth sites with the whole $25K+ resutls in an actual FR instead of just a verification. I know I'm not setting a new record by any means so it's more for the data points really at this point. Maybe I'll shut down some of my useless cards that are just maintained for age at this point.

Thanks for the information, folks

I guess I don't need to worry about it.

Re: Would Amex CLD for low usage?

Anonymous — Sun, 19 Feb 2017 01:55:22 GMT

I'm going to agree with most here and say Amex probably wont. I have a friend who has the BCE and insists to use cash most of the time we're out, and he says he hardly uses the card yet amex is always bumping his limit up anyway lol.