topic AMEX ED CLI Strategy--Which Method? in Credit Cards

AMEX ED CLI Strategy--Which Method?

Credit-hoarder — Mon, 25 Dec 2017 16:14:12 GMT

Hello and Merry Christmas folks. In approx a month I'm eligible for my next 6 mo. CLI from AMEX and I finally want to get the limit on my ED card up from the original $1K SL. Thing is I also have a $30K BCE. Should I: A--Request a $34.5K limit on BCE (don't want to do the 4506T thing) and transfer some of it ($4K is the amount I had in mind) over to the ED to make it $5K? ....or B--Just try for the 3x $1K on the ED? I'm leaning toward A b/c in 6 more mos. it would set me up for a possible $15K CL vs. a $9K CL on the ED. What do you think? BTW-the APR on my ED is 13.74--about 7% lower than BCE.

Re: AMEX ED CLI Strategy--Which Method?

Anonymous — Mon, 25 Dec 2017 16:34:23 GMT

I would go for the 3X CLI on the second card to get it up to $3K and then ask them to take $5K from the other card. Then you'd have an $8K card and a $25K card. I personally feel that anything over $25K is overkill. Then in 6 months, you could get the $8K card up to $24K (if Amex feels your income and score warrant it).

I know that is not what you are leaning towards and others will disagree with me but that is what I would personally do.

Re: AMEX ED CLI Strategy--Which Method?

RicHowe — Mon, 25 Dec 2017 17:31:26 GMT

@Anonymous wrote:
I would go for the 3X CLI on the second card to get it up to $3K and then ask them to take $5K from the other card. Then you'd have an $8K card and a $25K card. I personally feel that anything over $25K is overkill. Then in 6 months, you could get the $8K card up to $24K (if Amex feels your income and score warrant it).

I know that is not what you are leaning towards and others will disagree with me but that is what I would personally do.

+1 Great strategy. AMEX has a soft internal cap of $35k before you get in FR territory (which you do not want). EDIT: Read my correction below as my brain was too foggy when I originally wrote this.

Re: AMEX ED CLI Strategy--Which Method?

simplynoir — Mon, 25 Dec 2017 16:48:17 GMT

@RicHowe wrote:
@Anonymous wrote:
I would go for the 3X CLI on the second card to get it up to $3K and then ask them to take $5K from the other card. Then you'd have an $8K card and a $25K card. I personally feel that anything over $25K is overkill. Then in 6 months, you could get the $8K card up to $24K (if Amex feels your income and score warrant it).

I know that is not what you are leaning towards and others will disagree with me but that is what I would personally do.
+1 Great strategy. AMEX has a soft internal cap of $35k before you get in FR territory (which you do not want).

If anyone has worries about this (assuming it's even true) when requesting CLIs then they have issues before then.

Re: AMEX ED CLI Strategy--Which Method?

Credit-hoarder — Mon, 25 Dec 2017 17:00:48 GMT

@RicHowe wrote:
@Anonymous wrote:
I would go for the 3X CLI on the second card to get it up to $3K and then ask them to take $5K from the other card. Then you'd have an $8K card and a $25K card. I personally feel that anything over $25K is overkill. Then in 6 months, you could get the $8K card up to $24K (if Amex feels your income and score warrant it).

I know that is not what you are leaning towards and others will disagree with me but that is what I would personally do.
+1 Great strategy. AMEX has a soft internal cap of $35k before you get in FR territory (which you do not want).

Thanks for the replies. Interesting you both say that because in a way that was my original strategy--but I figured once I got that $30K limit I'd keep it there so other banks would see I can handle a limit like that responsibly and possibly match it or top it--and it worked. Just recently my B of A Cash Rew. was increase to $30K also. That and the BCE are now my two highest limits. I don't ever plan on going past $35K on a single AMEX card. And I'd probably have to do something really crazy at this point to get called out with a FR...like miss a lot of payments, or max out cards, or add 15 new accts in a year-etc. IOW I've never seen AMEX do a FR without some kind of red flag behavior. Just having high CLs by itself doesn't fall into that category IMO-but thanks for warning me about that possiblity

Re: AMEX ED CLI Strategy--Which Method?

RicHowe — Mon, 25 Dec 2017 17:19:02 GMT

@simplynoir wrote:
@RicHowe wrote:
@Anonymous wrote:
I would go for the 3X CLI on the second card to get it up to $3K and then ask them to take $5K from the other card. Then you'd have an $8K card and a $25K card. I personally feel that anything over $25K is overkill. Then in 6 months, you could get the $8K card up to $24K (if Amex feels your income and score warrant it).

I know that is not what you are leaning towards and others will disagree with me but that is what I would personally do.
+1 Great strategy. AMEX has a soft internal cap of $35k before you get in FR territory (which you do not want).
If anyone has worries about this (assuming it's even true) when requesting CLIs then they have issues before then.

EDIT: Oops, I used the wrong term. The 35k soft cap I referred to is per card, not total credit exposure, but this may not be the case anymore. At any rate, AMEX will weight proof of income heavier (4506-T instead of a FR) once credit lines cross that threshold. A FR is based on riskier behavior (such as using peer to peer payment systems to avoid cash advance fees). But your point is well taken. If you are on the up and up about income and usage, even income verification or worse, a FR, are no matter. Thanks for catching my mistake, for others who will read this post in the future.

Re: AMEX ED CLI Strategy--Which Method?

Credit-hoarder — Mon, 25 Dec 2017 17:12:02 GMT

@RicHowe: They might ask for a 4506T form or some other POI at or after the $35K mark--but not automatically do a FR. Those are two VERY different things from what I've read here on the forum.

Re: AMEX ED CLI Strategy--Which Method?

simplynoir — Mon, 25 Dec 2017 17:12:57 GMT

@Credit-hoarder wrote:
And I'd probably have to do something really crazy at this point to get called out with a FR...like miss a lot of payments, or max out cards, or add 15 new accts in a year-etc. IOW I've never seen AMEX do a FR without some kind of red flag behavior. Just having high CLs by itself doesn't fall into that category IMO-but thanks for warning me about that possiblity

Yeah, I'm starting to think he used the wrong word/phrase there because financial review (FR) is a completely different beast than simple income verification (IV).

Re: AMEX ED CLI Strategy--Which Method?

RicHowe — Mon, 25 Dec 2017 17:13:01 GMT

@Credit-hoarder wrote:
@RicHowe: They might ask for a 4506T form or some other POI at or after the $35K mark--but not automatically do a FR. Those are two VERY different things from what I've read here on the forum.

Indeed, I corrected my post above yours. Too early for me on Christmas

Re: AMEX ED CLI Strategy--Which Method?

simplynoir — Mon, 25 Dec 2017 17:13:21 GMT

@Credit-hoarder wrote:
@RicHowe: They might ask for a 4506T form or some other POI at or after the $35K mark--but not automatically do a FR. Those are two VERY different things from what I've read here on the forum.

+1000

Re: AMEX ED CLI Strategy--Which Method?

bourgogne — Mon, 25 Dec 2017 19:56:29 GMT

not sure I am awake the read this but the 3x will always be based on the original credit line issued; ie. $1K, 3, 9, 27, etc. that said, if you want to grow the ed you are going to have to use it and it then comes down to a pts vs $ cash question.