topic Amex reduced my credit line - questions in Credit Cards

Amex reduced my credit line - questions

Anonymous — Sun, 13 Aug 2017 17:48:03 GMT

So I recently upgraded my green card to the platinum and my hilton honors Amex to the surpass Hilton. I've increased my spending on both these accounts and just returned from a vacation where I used these cards for everything.

I got an email from Amex today that they reduced my credit line on my third card which is the blue cash card. I don't use it often. But I'm wondering why they did this? Is it because they saw an increase of spending on the other cards and this one wasn't utilized much?

I hate losing credit lines. This has never happened before.

Any input would be great. I have zero negatives on my credit report and total utilization is under 10%.

Re: Amex reduced my credit line - questions

Anonymous — Sun, 13 Aug 2017 17:54:04 GMT

All banks are only willing to give X amount of credit to each individual. Since you've increased your usage on a charge card, they have likely dynamically increased their allocation to that card by taking from the unused one rather than either declining you or requesting a financial review to increase your total allocation

Re: Amex reduced my credit line - questions

SouthJamaica — Sun, 13 Aug 2017 18:02:04 GMT

@Anonymous wrote:
So I recently upgraded my green card to the platinum and my hilton honors Amex to the surpass Hilton. I've increased my spending on both these accounts and just returned from a vacation where I used these cards for everything.

I got an email from Amex today that they reduced my credit line on my third card which is the blue cash card. I don't use it often. But I'm wondering why they did this? Is it because they saw an increase of spending on the other cards and this one wasn't utilized much?

I hate losing credit lines. This has never happened before.

Any input would be great. I have zero negatives on my credit report and total utilization is under 10%.

I have a hunch that it's macroeconomics that's going on here; there just seems to be a lot of this stuff going around.

I personally experienced (a) the closure of all of my accounts by Capital One and (b) a reduction of my credit limit by Alliant Credit Union, despite credit scores at or near 800 and a perfect unblemished credit history. And I've seen lots of reports here of others experiencing similar indignities.

Re: Amex reduced my credit line - questions

Anonymous — Sun, 13 Aug 2017 18:13:17 GMT

I would give them a call and ask, it can't hurt. See what there rationale for reducing your credit limit is.

Re: Amex reduced my credit line - questions

Blodreina — Sun, 13 Aug 2017 18:28:55 GMT

I agree with the other poster about it being related to your total Amex exposure. I have a slightly different interpretation.

"We're willing to extend you X amount of credit. Your increased spend makes us less willing to extend that amount (i.e., elevated risk). The new amount of credit we're willing to extend is X."