topic Re: I ASKED AMEX to lower my limit in Credit Cards

I ASKED AMEX to lower my limit

Anonymous — Fri, 06 Apr 2018 07:44:05 GMT

So back in November of 2017, I was reading up quite a bit on the Amex FR. I guess all of the talk and articles about it got me worried so I took a preemptive measure to make sure it didn't happen to me by decreasing my credit limit with them. Here was my thought process.

I got the Amex Delta in October of 2016 with SL of 1K. 6 months later I got an auto-cli to 3K followed by ANOTHER auto-cli to 9K exactly 6 months after the first. At this rate, I figured the next CLI would follow suit and I would be sitting at 27K which is in the range for an FR.

In an effort to prevent this, I lowered my credit line with them from 9K to 7K and was told by the rep that I would not be receiving any auto-cli's any more but can still apply for an increase on their site if needed. Somehow I thought this would prevent me from an FR but in hindsight it just looks like a dumb move on my end because my stated income was like 20K so there's no way they would increase me past that.

The 7K is currently my highest limit and I really don't utilize much of my CL across any of my cards anyways so there isn't a need for a CLI right now, but I was just curious to know what you guys think and whether my action made sense or it was just plain dumb.

Re: I ASKED AMEX to lower my limit

coldfusion — Fri, 06 Apr 2018 09:06:11 GMT

Your hindsight was 20/20.

Consider turning this into an opportunity for you to apply for a BCE in a couple of months, since it has no AF and you're now at least $2K below the threshold they're comfortable in extending you.

Re: I ASKED AMEX to lower my limit

UncleB — Fri, 06 Apr 2018 11:34:16 GMT

@Anonymous wrote:
So back in November of 2017, I was reading up quite a bit on the Amex FR. I guess all of the talk and articles about it got me worried so I took a preemptive measure to make sure it didn't happen to me by decreasing my credit limit with them. Here was my thought process.

I got the Amex Delta in October of 2016 with SL of 1K. 6 months later I got an auto-cli to 3K followed by ANOTHER auto-cli to 9K exactly 6 months after the first. At this rate, I figured the next CLI would follow suit and I would be sitting at 27K which is in the range for an FR.

In an effort to prevent this, I lowered my credit line with them from 9K to 7K and was told by the rep that I would not be receiving any auto-cli's any more but can still apply for an increase on their site if needed. Somehow I thought this would prevent me from an FR but in hindsight it just looks like a dumb move on my end because my stated income was like 20K so there's no way they would increase me past that.

The 7K is currently my highest limit and I really don't utilize much of my CL across any of my cards anyways so there isn't a need for a CLI right now, but I was just curious to know what you guys think and whether my action made sense or it was just plain dumb.

I think it's a bit harsh to call your action 'dumb'; I would just say it was perhaps misguided.

Of course, all that really matters is your own comfort level. If the voluntary CLD helps you to sleep at night it was definitely worth it no matter what I say, or anybody else for that matter.

As for dodging an FR, well, it was likely overkill. People have been FR'ed with relatively modest credit lines, and some with massive credit lines have never heard a peep out of Amex, and likely won't.

Most likely had you left things as they were and continued your responsible spending habits you would have been fine with your previous higher credit line. There's also always a chance you could be FR'ed at your current (new) credit line... my point is you can drive yourself crazy trying to anticipate these things. Also keep in mind that ~~usually~~ when an FR is done, there's a reason... if you're not doing anything 'weird' (and if you were, you would know it) you will likely be fine.

In a nutshell, just treat this as a learning experience and unless you're spending habits are odd for someone at your income level don't fear the infamous Amex FR.

Re: I ASKED AMEX to lower my limit

Gregory1776 — Fri, 06 Apr 2018 11:43:19 GMT

You have to be doing something weird to get a FR..... I don’t think it was Necessary

Re: I ASKED AMEX to lower my limit

AverageJoesCredit — Fri, 06 Apr 2018 13:30:41 GMT

I think if you were receiving auto cli from Amex they were liking your profile and felt you could be responsible with that amount of credit. If anytime a credit limit makes you feel uncomfortable, doing what you feel is right is ok. Like said, just use your card normal and you should be fine

Re: I ASKED AMEX to lower my limit

Anonymous — Fri, 06 Apr 2018 14:18:20 GMT

I think you are also confusing an FR with an income verification request. As others have said, an FR can happen at any income/CL level, when Amex get concerned about something. Income verification can happen when you request a CLI and Amex needs more information to justify it. While many report it happening around $25K, there is lots of variability, some never get them, others might get them at lower levels.

While income verification is also part of an FR, on its own it is harmless. You can refuse to submit the form and then you just don't get the CLI. With an FR, failure to comply will generally lead to card(s) closure. Also, when requesting an CLI, if asked for income verification, you can cancel and try again with a lower amount until you are no longer asked. Sometimes the "allowed" increase will be too small, and you can then decide to go big again and submit the info.

Re: I ASKED AMEX to lower my limit

Anonymous — Fri, 06 Apr 2018 15:35:15 GMT

Thank you everyone! I appreciate all the help. Everything you guys are saying makes sense

Re: I ASKED AMEX to lower my limit

Anonymous — Fri, 06 Apr 2018 15:44:48 GMT

The 3x CLI is not guranteed. I got a 3x increase at 2 weeks. And then six months later I got a 2x increase. I think 3x is just the max. Also can't you just ask what you want your limit to be? So couldn't you just ask your next CLI to be to 20k?

Re: I ASKED AMEX to lower my limit

Anonymous — Fri, 06 Apr 2018 15:57:14 GMT

These were all auto-CLI that happened every 6 months on the dot. I’ve actually never asked for a CLI from Amex

Re: I ASKED AMEX to lower my limit

Gregory1776 — Fri, 06 Apr 2018 17:08:08 GMT

I wish they’d auto increase me!

There is absolutely no risk in a financial review if Amex increases your credit limit. They like you, your profile, and want you to have a higher limit because they trust you with it. I’d say use it, give them a call and withdrawal your request for no auto clis, hell, I’d ask for one imho. But that’s me.... 🙃

Re: I ASKED AMEX to lower my limit

Anonymous — Fri, 06 Apr 2018 18:12:43 GMT

@Anonymous wrote:
These were all auto-CLI that happened every 6 months on the dot. I’ve actually never asked for a CLI from Amex

I am not sure what your end goal is. It is not like they are going to raise your limit more than they think you income and Fico scores warrant. Is your income overstated? Anyway 7k limit isn't too bad. I have around 200k of income and I only have 7k accross 2 Amex credit cards after 7 months.

Re: I ASKED AMEX to lower my limit

Anonymous — Fri, 06 Apr 2018 18:27:05 GMT

My income on the original application was slightly overstated but I fixed that after year 1. My income was around 14K and I put 20K on the application. After 1 year (after I had already received my autoCLIs to 9K) they prompted me to update my income and I lowered it to 14K.

Re: I ASKED AMEX to lower my limit

Gregory1776 — Fri, 06 Apr 2018 18:32:12 GMT

My income varies too.... I usually put 40K, which is pretty close after rent from my brother, and bonuses from work.

I think about it like it gives the bank enough info to know where to set your limit at. Plus I think a bit about it is legal.

Just don’t quadruple your stated income hoping to get a 30K SL.....you’ll end up getting accounts closed if the creditor digs deeper. Who knows, even sued?

Re: I ASKED AMEX to lower my limit

Anonymous — Fri, 06 Apr 2018 18:33:27 GMT

With 14k of income I could not see you ever needing more than 7k of limit anyway. With taxes (You have to pay at least SSN and Medicaire) You can't be clearing much more than 1k a month. Even if you put all your spending on your card it wouldn't be more than 1k. That is only 14 percent utilization. You should be fine. No harm done.

Re: I ASKED AMEX to lower my limit

Gregory1776 — Fri, 06 Apr 2018 18:54:05 GMT

Nobody should be spending their credit limits, no matter your income.

Its a utilization thing.

And yea, if my income was 14K, I’d be stoked for a 7K CC.

Re: I ASKED AMEX to lower my limit

Anonymous — Fri, 06 Apr 2018 18:57:24 GMT

Yup. I’m a student trying to establish good credit so I only have 14K income from internships and such and definitely stoked with a 7K CL

Re: I ASKED AMEX to lower my limit

Anonymous — Fri, 06 Apr 2018 19:46:19 GMT

@Gregory1776 wrote:
Nobody should be spending their credit limits, no matter your income.

Its a utilization thing.

And yea, if my income was 14K, I’d be stoked for a 7K CC.

If you are concerned about your score that month, yes, best not to spend near you credit limit AND let it report.

But otherwise, you can pay down before it cuts, or just let it report and take the hit for the month (or less). If you can PIF before due date, and if it makes sense for some reason (rewards, convenience, perks etc) maxing out a card from time to time is OK.