topic Re: AMEX credit limit decrease in Credit Cards

AMEX credit limit decrease (Updated)

06GTS197 — Fri, 22 Mar 2019 22:00:37 GMT

Hi, just logged in to Amex and noticed my limit got cut from 30k to 15k. Nothing on my profile has changed. The only thing I can think of is I haven’t used the BCE in a month because another card has been serving my grocery needs for cash back.

Any idea why Amex would do this?

Re: AMEX credit limit decrease

Anonymous — Fri, 22 Mar 2019 00:53:39 GMT

it does seems a trend now, this is the 5th reported case in the past week?

Amex is now probably in line with CL from other lenders.

Re: AMEX credit limit decrease

CreditInspired — Fri, 22 Mar 2019 00:56:29 GMT

@06GTS197 wrote:
Hi, just logged in to Amex and noticed my limit got cut from 30k to 15k. Nothing on my profile has changed. The only thing I can think of is I haven’t used the BCE in a month because another card has been serving my grocery needs for cash back.

Any idea why Amex would do this?

Oh no, another one bites the dust (so-to-speak). I think you’re the 4th or 5th one that this CL slashing has happened to in as many days.

Was the other card another AmX card?

Wow, just one month of nonuse and AmX is cutting limits. Now this is worrisome.

Re: AMEX credit limit decrease

FlaDude — Fri, 22 Mar 2019 00:55:53 GMT

Looks like they are doing this quite a bit lately.

https://ficoforums.myfico.com/t5/Credit-Cards/Amex-chopped-CL-50/m-p/5542847?collapse_discussion=true&filter=location,dateRangeType&location=forum-board:creditcard&q=amex&rangeTime=1w&search_type=thread

https://ficoforums.myfico.com/t5/Credit-Cards/AMEX-AA-Reversal/m-p/5542949?collapse_discussion=true&filter=location,dateRangeType&location=forum-board:creditcard&q=amex&rangeTime=1w&search_type=thread

Re: AMEX credit limit decrease

06GTS197 — Fri, 22 Mar 2019 01:07:15 GMT

Yea 1 month. I’m a little upset about the cut. Gonna call them tomorrow and ask for it back.

Re: AMEX credit limit decrease

pinkandgrey — Fri, 22 Mar 2019 01:15:18 GMT

Hmm this seems to be happening a lot lately. Sorry about that! Hopefully you can rectify the situation

Re: AMEX credit limit decrease

wasCB14 — Fri, 22 Mar 2019 01:24:24 GMT

OP, how much spend would you put on the card in a busy month?

Re: AMEX credit limit decrease

Chelow — Fri, 22 Mar 2019 02:40:39 GMT

I'm sorry hear that Op ! How long have you had this card for?

Hopefully you can rectify that with a phone call tomorrow.! GL

I hope this new "trend" doesn't affect the 3x 61days CLI system.

Re: AMEX credit limit decrease

Anonymous — Fri, 22 Mar 2019 02:48:37 GMT

@06GTS197 wrote:

Any idea why Amex would do this?

100% because they feel you aren't using a significant portion of the $30k limit they've given you. My question to you is how much use you've been giving the card over the past 6-12 months? I know you said you had a light/$0 month due to using another card (likely Discover, I did too) for groceries, but what about the months before that? Can you give us the average spend you put on the card monthly, but also and perhaps even more important the single largest spend you've put through the card in any given month in the last 12 months?

Re: AMEX credit limit decrease

Kforce — Fri, 22 Mar 2019 03:31:24 GMT

@Anonymous wrote:
it does seems a trend now, this is the 5th reported case in the past week?
1 ) Amex is now probably in line with CL from other lenders.

No one likes to see a reduction, however when looked at from the the side, this should not be shocking.

Amex has been overly generous with CL increases and inflated CL's for a long time.

One reason they are so popular and recommended for every new user.

3x CL increases at 90+ days, higher than average CL's on cards !

They have decided that they need to reverse some of the inflated limits they have issued.

Still at least 50% higher than OP's second largest CL.

The limit reduction puts the Amex at 4.5 times other cards average CL, started at 9 times CL.

$15,000 is a good CL for a capped grocery card.

Re: AMEX credit limit decrease

fritscher — Fri, 22 Mar 2019 04:07:50 GMT

Happened to me too but they took 6000 off my one card and put on newly approved card

Re: AMEX credit limit decrease

CJ7 — Fri, 22 Mar 2019 04:38:29 GMT

I'm sure to be next. Same 30K limit, rarely use it (ED).

At least I'll not be surprised and have a chance to ponder my impending reaction.

This is my crowbar account, followed by 28K elsewhere.

I don't find the rewards to be very good compared to other cards.

The one thing I can count on from AX is that a large purchase will go through without drama.

I may go ahead and close it if they CLD out of spitefulness, but at least it won't be a

knee-jerk reaction.

I'm sure that others have and will argue that I'm not entitled to that large of a CL if I'm not

using it, but I argue that other creditors don't typically reduce credit lines for reasons unknown

or "changes in policy". I've done nothing wrong and suddenly I'm trusted half as much as I was

yesterday. Perhaps next year I'll have a large purchase that I need to carry for a while. I'd rather

the utilization during that period was 40% instead of 80%.

It is of little solace that they're apparently doing it across the board.

Re: AMEX credit limit decrease

Anonymous — Fri, 22 Mar 2019 04:46:13 GMT

@CJ7 wrote:

I'm sure that others have and will argue that I'm not entitled to that large of a CL if I'm not
using it, but I argue that other creditors don't typically reduce credit lines for reasons unknown
or "changes in policy".

These other creditors are not as smart as Amex, then. Amex is doing the financially responsible thing here and honestly other lenders should follow suit. I find it ridiculous that Amex or any other lender for that matter will give someone that's using (say) 1% of their credit limit a great limit. Then a greater limit again. It's crazy when you think about it. Take on greater risk for no greater reward... not exactly a great business practice.

I fully expect a CLD from Amex based on the recent posts of this forum and when it happens I'll accept it with open arms. Then can lower my CL from $55k to $5k and honestly, that would be perfectly fine on their card that is lucky to see a few hundred bucks of spend from me in any given cycle. It is what it is. I would be less upset about the $50k CLD than I would be about not being able to test in 5 months whether or not I'd be able to raise that $55k limit to $60k. Gotta love being a MF geek sometimes

Re: AMEX credit limit decrease

staticvoidmain — Fri, 22 Mar 2019 04:53:29 GMT

Does anyone have data points on which card they do this to? Is it mostly BCE?

Re: AMEX credit limit decrease

wasCB14 — Fri, 22 Mar 2019 05:49:39 GMT

@staticvoidmain wrote:
Does anyone have data points on which card they do this to? Is it mostly BCE?

I don't think it's a matter of Amex doing it to BCE accounts. I think it's a matter of Amex CLDing the type of customers who often have a BCE.

It's a pretty mediocre card! I got one years ago and rarely use it. I just have it for the infrequent useful offer and the extra history. I'd be logging into Amex, anyway, and can call Platinum CS with any problems.

People who spend a lot on the Amex grocery category will probably have a BCP or Gold. 2% on gas is kind of pointless when there are so many 2%-on-everything cards. 1% on other stuff is not very appealing.

Travel enthusiasts will probably get an MR or points/miles-earning card. Perhaps something that will help them earn elite status with a hotel or airline. Less-specialized customers may favor a no-AF cash back card, and Cash Magnet is comparatively new.

Amex 3x makes it relatively easy to grow a BCE CL, yet it's a card that hardly anyone here will put serious spend on.

---

$95 AF / (6%-3%) = $3166.66

So at $3167 of grocery spend per year, BCP provides more in net rewards than BCE. If you want to adjust for the fact the AF is due now and the cash back is in the future, maybe adjust it to $3600.

Less than $3,600 / 12 months = less than $300 of grocery spend per month

On a $15k CL, $300 is only 2% average utilization.

Re: AMEX credit limit decrease

CJ7 — Fri, 22 Mar 2019 05:53:59 GMT

@Anonymous wrote:
@CJ7 wrote:

I'm sure that others have and will argue that I'm not entitled to that large of a CL if I'm not
using it, but I argue that other creditors don't typically reduce credit lines for reasons unknown
or "changes in policy".

These other creditors are not as smart as Amex, then. Amex is doing the financially responsible thing here and honestly other lenders should follow suit.
Then they should have never done so to begin with. A good analogy would be a dog on a chain.
I kind of like the length of my chain. I've shown responsibility via usage and credit scores to earn
that longer chain. I shouldn't suddenly have my chain cut to half the length and expect to be happy
about it. I have experienced the chain being longer. Suddenly I have a chain the length of someone
with a 680 score. My owner might get his leg bitten off the next time he comes to feed me, and I'll
run off to NFCU where they'll reward me with a long chain and not take it away because someone
decided to change policy.

Something else I've never understood, why give out a limit of X, and when you reach X times 0.8
they freak out.

Just give me a limit you're comfortable with me using to begin with and quit playing silly games!

Re: AMEX credit limit decrease

redpat — Fri, 22 Mar 2019 09:23:19 GMT

Lol, they must be really tired of the guide to 3x CLI thread.

I see another monster thread coming along......

Re: AMEX credit limit decrease

Anonymous — Fri, 22 Mar 2019 12:48:30 GMT

@CJ7 wrote:
Just give me a limit you're comfortable with me using to begin with and quit playing silly games!

You're failing to recognize here that things/policies change. At the time they obviously were willing to extend a certain limit and now presumably due to risk/exposure/ultimately profits they aren't and are tightening things up. Policies change all the time based on circumstance.

A restaurant may offer their employees a free shift meal, but have a lone restriction that their 2 best steaks aren't eligible. An employee for 3 years working there that doesn't eat red meat eats a seafood dish almost every shift. For whatever reason, several seafood prices go through the roof in the market and the owner as a result puts a restriction against employees ordering a few of the dishes that this employee regularly enjoys. It is what it is. At the time the initial policy was made, the owner was comfortable with all seafood dishes being free as a shift meal. His costs went up, so he had to tighten things up. While this may be a letdown to the employee, certainly they would "understand" the policy change.

Re: AMEX credit limit decrease

CreditInspired — Fri, 22 Mar 2019 12:57:34 GMT

@fritscher wrote:
Happened to me too but they took 6000 off my one card and put on newly approved card

Your’s was a reallocation, not a CLD.

Re: AMEX credit limit decrease

Anonymous — Fri, 22 Mar 2019 12:57:52 GMT

Good post from CB14 above.

Any BCE cardholder that has very high (say, $25k+) limit no doubt has other rewards cards as well. I think it would be very rare to find a high limit BCE cardholder that has only that one card and uses it as their daily driver. That being said, as CB14 points out the card is quite meaningless outside of the 3% grocery category for the majority of people that have a few other cards. So then it comes down to how much can one really spend in a cycle on groceries? Definitely not enough to support "needing" a $25k+ limit, that's for sure.