topic Re: Amex Gold arrived in Credit Cards

Amex Gold arrived

Anonymous — Sat, 16 Feb 2019 07:07:26 GMT

My Amex Gold card arrived today. I'm new to a charge card and with NPSL I thought I'd check to see what my limit was. I checked my spending power to find out it was only 2,000. My other Amex BCP has a 10,000 limit on it. I'm a bit confused... How does Amex determine what your spending limit is? What can you do to increase the spending limit? Thanks in advance.

Re: Amex Gold arrived

Shadowfactor — Sat, 16 Feb 2019 12:52:23 GMT

The check spending power tool is used a single transaction and doesn’t reflect the overall amount you can spend on the card each month.

Given that it’s a new account, this is quite common and it will increase over time with regular use of the card.
You can always call American Express on the phone and ask to be approved for a larger amount if the Online tool “declines” you.

You mentioned you had a BCE at 10K CL. How much of your current CL do you spend every month ? Your useage of American Express accounts, length of history, credit report , income and other factors all play a part in your internal limit.
If you have a high limit BCE but are only spending $1500 a month in several smaller transactions.
$2000 for a single transaction can be more then sufficient.

Every time you spend on the card. It will affect your future spending power. Using the card regularly will see an increase in spending power.

I wouldn’t play with the spending power tool either. Use it for its intended purpose. Every time you type in an amount. The computer will look for a authorization in that amount and it reduces your internal limit.

Re: Amex Gold arrived

UpperNwGuy — Sat, 16 Feb 2019 13:13:54 GMT

From this point forward, do not check your spending limit again unless you plan to spend more than $2,000 on a single purchase.

Re: Amex Gold arrived

Anonymous — Sat, 16 Feb 2019 13:26:26 GMT

@UpperNwGuy wrote:
From this point forward, do not check your spending limit again unless you plan to spend more than $2,000 on a single purchase.

Is that an order or a suggestion?

OP-

Here is the link to some info on the spending tool function that was recent and seems fairly reliable:

https://ficoforums.myfico.com/t5/Credit-Cards/Amex-The-Check-Spending-Power-tool/td-p/5478835

Re: Amex Gold arrived

Loquat — Sat, 16 Feb 2019 13:41:17 GMT

OP, congrats on your new card. Enjoy it and I hope it serves you well. As for the ability to check your spending power, this number can change as it usually adjust with your history with that particular card. There will always be an off chance that something will not be immediately approved, hence the check spending limit button.

If you have a charge that is going to be outside of your typical spending habits you can use this tool to let Amex know that the charge is coming. If the system tells you all is well then you know that you have a very good chance of the charge going through without issue. If it doesn't approve it, it's not the end of the world...kindly give Amex a call and let them know and maybe they will go ahead and override the system to allow the purchase.

The only time I've used the button and had to call was when I received my new Amex Platinum. I intentionally timed the application of the card with the purchase of a new vehicle for myself and my wife. I know the sales tax that must be paid would very well exceed the $5k spend requirement for the bonus. I receieved the card, within 3 hours of having it I was headed to the DMV. Used the check spending button in the parking lot for slightly over $6k and of course the system said it wouldn't approve. I gave a call to Amex, explained to them exactly what I was doing and where the charge would be coming from. I don't know what he did but it worked. The guy was even kind enough to ask if I wanted him to stay on the line while I made the purhcase. Of course the DMV was beyond crowded so I didn't keep him but he said that I could call in the event that the charge didn't go through for whatever reason.

As expected the charge went through without issue and just in case things didn't pan out, I made sure that I had my CSP and at the time, my CapOne Venture with me as a backup.

Re: Amex Gold arrived

severide — Sat, 16 Feb 2019 15:04:18 GMT

@Shadowfactor wrote:
The check spending power tool is used a single transaction and doesn’t reflect the overall amount you can spend on the card each month.

I thought this as well. but a couple of months ago, I used my Gold card at the grocery store and was declined. I called them up to ask what the hell was up and they said that the purchase would have put me past my spending power of $6300 (I hadn't checked what my spending power was at this point). I told them that I thought the NPSL meant that I can't exceed that limit on a single purchase/transaction, but the CSR told me that was incorrect and that I couldn't spend over that much in a month and I would have to make a partial payment at the very least if I wanted to keep using the card that month.

So that was a crappy situation..

Re: Amex Gold arrived

Anonymous — Sat, 16 Feb 2019 15:16:52 GMT

Thanks for all the input, I really do appreciate it. I plan on using the card primarily instead of my ATM to meet the 2k spending requirement to get the bonus points. We'll see where it caps me off.

Re: Amex Gold arrived

Shadowfactor — Sat, 16 Feb 2019 15:21:59 GMT

@severide wrote:
@Shadowfactor wrote:
The check spending power tool is used a single transaction and doesn’t reflect the overall amount you can spend on the card each month.

I thought this as well. but a couple of months ago, I used my Gold card at the grocery store and was declined. I called them up to ask what the hell was up and they said that the purchase would have put me past my spending power of $6300 (I hadn't checked what my spending power was at this point). I told them that I thought the NPSL meant that I can't exceed that limit on a single purchase/transaction, but the CSR told me that was incorrect and that I couldn't spend over that much in a month and I would have to make a partial payment at the very least if I wanted to keep using the card that month.

So that was a crappy situation..

You likely hit your internal limit, which is what prompted a required payment.

The spending power tool and your internal limit can be the exact same thing but it doesn’t have to be.

Re: Amex Gold arrived

Anonymous — Sat, 16 Feb 2019 15:45:27 GMT

First of all Congrats on the Amex Gold Card! Personally I think it's the best card on the market. Using the restaurant and airline credits covers the annual fee, and MR points collected using the card at restaurants/groceries is better than a 5% cash back card!! Its a great card, and since I have to pay the balance in full each month I have no high rate carry balances. This card replaces my debit card in my wallet.

Disclaimer, I have been an Amex customer for 26 years. What I can say is the first few years my spend power was really low. A couple tips, 1) don't check spend power more then 1x a month, checking it frequently can cause a red flag at Amex. 2) use the card for everything you can, and payoff the balance right away (like every 2-3 days for first six months). It will help build your credit with Amex, and after 6 months should boost your spend power!

At the end of the day, amex wants you to build a strong use and repayment history so they can see you are responsible and can easily repay. The worst thing you can do with amex is not pay the bill on time, so for the first 6-12 months pay the bill early, like before the billing drops.

I have done this for the past 26 years. Let's just say my spend power today is really high (like as much as all my other credit limits combined).

Good Luck, and enjoy the card!

Re: Amex Gold arrived

NRB525 — Sat, 16 Feb 2019 19:08:51 GMT

@Anonymous wrote:
Thanks for all the input, I really do appreciate it. I plan on using the card primarily instead of my ATM to meet the 2k spending requirement to get the bonus points. We'll see where it caps me off.

Congrats on the new card. Hopefully even after you meet the $2k spend requirement, you leave your no-rewards, high risk Debit card alone, do not use it for any transactions, and use the Gold for almost all transactions so that you get at least basic rewards and purchase security.

Re: Amex Gold arrived

Loquat — Sat, 16 Feb 2019 20:26:24 GMT

@Anonymous wrote:
First of all Congrats on the Amex Gold Card! Personally I think it's the best card on the market. Using the restaurant and airline credits covers the annual fee, and MR points collected using the card at restaurants/groceries is better than a 5% cash back card!! Its a great card, and since I have to pay the balance in full each month I have no high rate carry balances. This card replaces my debit card in my wallet.

Disclaimer, I have been an Amex customer for 26 years. What I can say is the first few years my spend power was really low. A couple tips, 1) don't check spend power more then 1x a month, checking it frequently can cause a red flag at Amex. 2) use the card for everything you can, and payoff the balance right away (like every 2-3 days for first six months). I'm sorry, this is absolutely not neccessary. OP, if you want to do this, sure, go for it, but doing this for 6 months can be timinng consuming and probably won't yield any different result that using your card responsibly and paying when the bill is due.

It will help build your credit with Amex, and after 6 months should boost your spend power! Again, using your card responsibly will achieve the same history with Amex and even so, may not have any bearing on your ability to spend more. Your known income to Amex, your credit score, etc plays a lot into what you can spend. Many folks chime in on this here forum saying that Amex reduced or implemented a hard limit on their NPSL card due to changes in their credit report and often those changes didn't even involve and Amex card.

At the end of the day, amex wants you to build a strong use and repayment history so they can see you are responsible and can easily repay. The worst thing you can do with amex is not pay the bill on time, so for the first 6-12 months pay the bill early, like before the billing drops. Like I mentioned above, paying early is a choice and certainly not a requirement. Doing so probably won't give you anything more than paying your bill when it's due will. As for building a "relationship" and paying your bill on time, heck, every lender wants you to spend more with them and pay your bill on time...that's a given...it's not an Amex thing it's an every lender thing.

I have done this for the past 26 years. Let's just say my spend power today is really high (like as much as all my other credit limits combined).

Good Luck, and enjoy the card!

Re: Amex Gold arrived

Anonymous — Sat, 16 Feb 2019 22:11:57 GMT

Stop doing that unless you want financial reviews.

Re: Amex Gold arrived

FinStar — Sat, 16 Feb 2019 22:37:44 GMT

@Anonymous wrote:
Stop doing that unless you want financial reviews.

Is there any direct evidence that such patterns actually triggers one? For as long as I've been an AmEx customer (20+ years) they've never blinked an eye whether a variety of payments were made early on or when balances cycled naturally. I have yet to see anyone reporting a FR was triggered because of mutliple or early driven payments on their AmEX cards that were not correlated to transactions or activity exceeding reported income during any given cycle.

Re: Amex Gold arrived

Anonymous — Sun, 17 Feb 2019 02:56:00 GMT

Stop doing what????

Re: Amex Gold arrived

Brian_Earl_Spilner — Sun, 17 Feb 2019 03:01:37 GMT

@FinStar I think he was talking about checking the spending limit.

Re: Amex Gold arrived

simplynoir — Sun, 17 Feb 2019 03:02:16 GMT

@Anonymous wrote:
Stop doing what????

Nothing. Like @FinStar said AMEX doesn't care about the amount of payment sources or how often you pay. I will say that someone juggling that many there is an increased likelihood that drawing a payment from an account with insufficient funds will change that in a hurry and that goes with ANY financial institution.

Re: Amex Gold arrived

simplynoir — Sun, 17 Feb 2019 03:03:10 GMT

@Brian_Earl_Spilner wrote:
@FinStar I think he was talking about checking the spending limit.

Didn't Pooka mention that is not the case. I'll try to find the post in question.

Re: Amex Gold arrived

simplynoir — Sun, 17 Feb 2019 03:04:50 GMT

@simplynoir wrote:
@Brian_Earl_Spilner wrote:
@FinStar I think he was talking about checking the spending limit.
Didn't Pooka mention that is not the case. I'll try to find the post in question.

Update: found it.

https://ficoforums.myfico.com/t5/Credit-Cards/Amex-The-Check-Spending-Power-tool/m-p/5480016#M1618005

Re: Amex Gold arrived

Brian_Earl_Spilner — Sun, 17 Feb 2019 03:08:06 GMT

@simplynoir wrote:
@simplynoir wrote:
@Brian_Earl_Spilner wrote:
@FinStar I think he was talking about checking the spending limit.
Didn't Pooka mention that is not the case. I'll try to find the post in question.
Update: found it.

https://ficoforums.myfico.com/t5/Credit-Cards/Amex-The-Check-Spending-Power-tool/m-p/5480016#M1618005

It's kind of a yes and no. It shouldn't trigger a FR, but it brings your account to their attention.

Re: Amex Gold arrived

simplynoir — Sun, 17 Feb 2019 03:42:46 GMT

@Brian_Earl_Spilner wrote:
@simplynoir wrote:
@simplynoir wrote:
@Brian_Earl_Spilner wrote:
@FinStar I think he was talking about checking the spending limit.
Didn't Pooka mention that is not the case. I'll try to find the post in question.
Update: found it.

https://ficoforums.myfico.com/t5/Credit-Cards/Amex-The-Check-Spending-Power-tool/m-p/5480016#M1618005
It's kind of a yes and no. It shouldn't trigger a FR, but it brings your account to their attention.

I think this is something AMEX needs to adjust in the future. Personally, the spending ability doesn't need to go away but having something like a dynamic spending limit show how much you can spend on the card at any time needs to somehow be implemented.