topic Re: Apply for new Amex card after credit decrease? in Credit Cards

Apply for new Amex card after credit decrease?

Anonymous — Wed, 09 Jan 2019 09:07:51 GMT

A few months ago I had a very high utilization on my Amex BCE (around 90%+) and received a credit line decrease from ~11k to 9.6k.

Immediately I started making large payments to lower the utilization and paid it off completely in December. After paying it to $0 I applied for a CLI and was denied due to the previous credit line decrease.

My score on the Amex app is 722 now (should go up this month once all payments report)

Total utilization is ~28%

I want to apply for a new card to use for BT and Amex ED seems like the best option.
Should I apply after being denied for the CLI And the CLD in August
Or would I have better odds with a different company?

Re: Apply for new Amex card after credit decrease?

coldfusion — Wed, 09 Jan 2019 11:25:51 GMT

Log onto your account and Menu -> Cards -> Check for Prequalified... -> Rewards Points Cards -> and Apply under the ED section.

If it comes back with "<your name> You're Pre-approved!" the odds are good. If (I forget the exact phrase) "Expanding your membership with us is easy" you're specifically not preapproved, so a positive outcome is less likely.

If you don't want to actually apply at that point just back out.

Either way, it's almost certainly going to be a soft pull if you apply.

Re: Apply for new Amex card after credit decrease?

Priory_Man — Wed, 09 Jan 2019 12:47:35 GMT

I think it's a 6 month wait after your CLD before you can ask for the original limit to be placed back on it.

As for applying for the ED, give it 6 months or so, maybe try Disco and see what they have in the way of a BT card.

Re: Apply for new Amex card after credit decrease?

UpperNwGuy — Wed, 09 Jan 2019 12:22:03 GMT

Don't poke the bear. Focus on other lenders for the next year. Don't ask Amex for any more credit until a year has passed.

Re: Apply for new Amex card after credit decrease?

kdm31091 — Wed, 09 Jan 2019 12:53:49 GMT

@UpperNwGuy wrote:
Don't poke the bear. Focus on other lenders for the next year. Don't ask Amex for any more credit until a year has passed.

I would agree. They gave you a CLD. You want to appear responsible and stable for awhile now. Leave Amex alone and just keep the acount in good shape. Don't ask for anything from them right now.

Re: Apply for new Amex card after credit decrease?

CreditInspired — Wed, 09 Jan 2019 14:08:18 GMT

OP
I agree with others. Give it at least 6-12 months. And during that time, still use card and either PIF or make very large payments.

Re: Apply for new Amex card after credit decrease?

Anonymous — Wed, 09 Jan 2019 16:31:46 GMT

@Anonymous wrote:
A few months ago I had a very high utilization on my Amex BCE (around 90%+) and received a credit line decrease from ~11k to 9.6k.

Immediately I started making large payments to lower the utilization and paid it off completely in December. After paying it to $0 I applied for a CLI and was denied due to the previous credit line decrease.

My score on the Amex app is 722 now (should go up this month once all payments report)

Total utilization is ~28%

I want to apply for a new card to use for BT and Amex ED seems like the best option.
Should I apply after being denied for the CLI And the CLD in August
Or would I have better odds with a different company?

I am certainly no credit expert or anything close to it, nor am I am Amex expert, but I will toss-in my two cents, and I go along with the popular opinion expressed by others so far. They were telling you something by decreasing you CL. I don't think a "few months" of zero balance is going to change their view that fast - as proven by them denying your CLI request in December.

I would not bother AMEX again for awhile. Personally, ( and not saying you should have this concern ), I would be too concerned of prompting further scrutiny from them, and maybe prompting them into freezing the account and doing a Finanical Review because of applying for another card with them after a just getting denied for the CLI, and the past CLD.

I would show them another 6 months of lower usuage/not carrying over balances...etc., before seeking another another card. The other benefit of waiting longer might not just be that you get approved for the new card, but also increase the odds that they give a good CL from the start with the new card, and not a $1000 starter CL.

Then again, I think credit card companies can be odd birds sometimes, and do odd things. There have been some denied an approval on a certain card or denied CLI on a current card, but then approved for brand new cards with the same creditor with a big CL, so...

But if I were in your shoes I'd probably wait longer before trying to get another AMEX card. That, or I'd just go and try getting another card that's comparable to the Amex ED, but from a different company. The way I see it, it's never a bad thing to diversify your credit cards across a number of companies anyway.

Re: Apply for new Amex card after credit decrease?

Anonymous — Wed, 09 Jan 2019 18:10:18 GMT

I agree with everyone above. In addition, I would also spend the next few months PIF to proove you can manage the higher CL. As well as desreve a CLI.

Out of curiosity, how long did you carry the 90% balance? Surely they wouldn't AA for only a few statement periods?

Re: Apply for new Amex card after credit decrease?

Anonymous — Thu, 10 Jan 2019 05:45:39 GMT

As far as data points go, I couldn't go back very far on the app but peak usage was 9300/10,800 in August when it happened then I paid a significant amount each month after.
I was paying a decent amount each month (500-700) leading up to the CLD. Also it wasn't as much of a reduction as I thought 10.8k->9.6k

Maybe they just got spooked because I had some high utilization on my other cards and overall (60% at one point)

Thank you for all of the replies. I'm just going to go with a different creditor and let my Amex cool off for 6 months+

Re: Apply for new Amex card after credit decrease?

K-in-Boston — Thu, 10 Jan 2019 14:16:51 GMT

Yes, the overall utilization and high balances on not just their card but with other lenders is likely what spooked them. For other balance transfer cards with the same $0 fee and 0% interest, consider the BankAmericard or Slate (keeping in mind that Slate is subject to the 5/24 rule). Show Amex that you can and will PIF every time and take advantage of some Amex Offers, wait a while and then you should be able to ask Amex for a CLI (and possibly get much more than you had before) or a new card.

Re: Apply for new Amex card after credit decrease?

Shadowfactor — Thu, 10 Jan 2019 15:06:24 GMT

IMO the CLD from Amex has made it clear that they have already extended you more then maximum amount of credit they feel comfortable with.

I understand life happens and sometimes carrying a balance is necessary but my suggestion would be work on getting your balances down and try to practice better credit management rather then opening new cards.

If if you still have high balances and need some 0% cards to help with all the interest.

I would take a look at Chase Slate and Bank of America. Both offer cards with 0% and no BT fee.

Discover does offer 0% for 14 months on purchases and BT for new accounts but I believe they still charge the BT fee.

You could also look into some different credit union cards. Some will offer the same type deal but may be easier to get approved for if you have high utilization currently.