topic Re: Amex gold card spending limited in Credit Cards

Amex gold card spending limited

SouthJamaica — Thu, 16 Jan 2020 20:17:19 GMT

I just had a $3k charge on my Amex Gold Card declined, because I usually only spend $500 month on it, and never went higher than $1700 in a month.

I called, thinking there was a fraud block or something, but the guy said I could only get approved for $1700, because the card is based on prior spending patterns.

I cancelled the card. Can't see paying $250 a month for a piece of garbage like that.

Re: Amex gold card spending limited

Caught750 — Thu, 16 Jan 2020 20:34:02 GMT

It’s odd that they wouldn’t approve a charge for $1700 if you’ve always PIF. I’m shocked to hear that and, honestly, I’d have likely closed it as well.

I’ve heard that spending limits are based off of the last 6 months but that still seems like an issue to me.

Re: Amex gold card spending limited

simplynoir — Thu, 16 Jan 2020 20:36:25 GMT

@Caught750 wrote:
It’s odd that they wouldn’t approve a charge for $1700 if you’ve always PIF. I’m shocked to hear that and, honestly, I’d have likely closed it as well.

I’ve heard that spending limits are based off of the last 6 months but that still seems like an issue to me.

It was $3k charge they wouldn't approve, $1700 was the max they would allow based on previous spending patterns

Re: Amex gold card spending limited

Caught750 — Thu, 16 Jan 2020 20:39:21 GMT

My mistake. I still think that’s a bit odd. Unless their concerns come from the Util issues (or DTI issues) discusses elsewhere.

I understand SJs annoyance and would likely react the same way

Re: Amex gold card spending limited

SouthJamaica — Thu, 16 Jan 2020 20:53:40 GMT

@Caught750 wrote:
It’s odd that they wouldn’t approve a charge for $1700 if you’ve always PIF. I’m shocked to hear that and, honestly, I’d have likely closed it as well.

I’ve heard that spending limits are based off of the last 6 months but that still seems like an issue to me.

Agreed. After he told me the charge had been declined because of my prior spending patterns, I fully expected him to say "but now that you are confirming that the charge is authorized, we can go ahead and approve it". Instead he said "we can only approve you for $1700, because this card's limit is based on prior spending".

What a way to do business.

Re: Amex gold card spending limited

SouthJamaica — Thu, 16 Jan 2020 20:56:22 GMT

@SouthJamaica wrote:
I just had a $3k charge on my Amex Gold Card declined, because I usually only spend $500 month on it, and never went higher than $1700 in a month.

I called, thinking there was a fraud block or something, but the guy said I could only get approved for $1700, because the card is based on prior spending patterns.

I cancelled the card. Can't see paying $250 a month for a piece of garbage like that.

Now I can stop going to Shake Shack each month trying to make use of my $10 meal credit.

Re: Amex gold card spending limited

Anonymous — Thu, 16 Jan 2020 21:29:26 GMT

Still, charge cards like this are meant for instances when you actually need to use it for a big purchase. I get that they would rather you put all your spend or significanty more that $1K per month. But to say you can't charge $3K because of 6 monhs of only $1K spend seems ueselsss to me. Especialy if you're PIF and pattern fluctuates.

If they want people to pay the AF, they should be a little more agreeable/trustworthy to be there when you need them. I mean we're not talking $15K here, and $3 would likely be PIF on next statement. Could have at least approved the transaction, then sent the friendly email to pay it down

If this ever happens to me, i will probably do the same. My spend has decreased recently due to becoming more budget mindful, and it being early in the new year. But i want to know that if something ever comes up and i need to charge it, I can.

Re: Amex gold card spending limited

K-in-Boston — Thu, 16 Jan 2020 21:36:04 GMT

"Declined because of [my] prior spending patterns" sounds like the CSR giving the blanket answer. NPSL is determined by much more than that. I'll go ages without making a big charge on my charge cards and then suddenly there's 4 or 5 digits in one shot. Unfortunately, I think it's sympomatic of the other AA you've seen. While recent charges do certainly factor into the decision-making, they're not the sole factor and most people with an established history should not encounter an issue like this. I believe the more truthful statement would be "due to other issues we've identified, your spending limit has been set at the highest previous monthly statement you have had with us."

No pre-set spending limit on purchases does not mean unlimited spending. Your purchases are approved based on a variety of factors, including current spending patterns, your payment history, credit record, and financial resources known to us.

Edit: Janus's post came in while I was typing this, and addressed the reason I felt the need to type this reply out. I don't want this to sound like I'm blaming SJ, but it's not the norm and I think he was just given an incomplete reasoning for the limit being imposed. Again, many years of experience tells me that I can go months or even a year or two without making a huge purchase and then when I do, there is no question in my mind that the charge will be approved.

Re: Amex gold card spending limited

wasCB14 — Thu, 16 Jan 2020 21:41:13 GMT

I'm not sure what to think. At first, I thought it was a matter of overall utilization...but Amex hasn't slashed OP's significant revolving lines with them, or put OP through FR or demanded POI.

I thought I had broken the "three times highest paid balance in the last 6 months" rule (or however Amex defines it) on Schwab in 2018, but by a hair I stayed within 3x. I've definitely done major BBP spend out of the blue, but that's a revolver and not a charge card.

Re: Amex gold card spending limited

FinStar — Thu, 16 Jan 2020 21:41:49 GMT

@K-in-Boston wrote:
"Declined because of [my] prior spending patterns" sounds like the CSR giving the blanket answer. NPSL is determined by much more than that. I'll go ages without making a big charge on my charge cards and then suddenly there's 4 or 5 digits in one shot. Unfortunately, I think it's sympomatic of the other AA you've seen. While recent charges do certainly factor into the decision-making, they're not the sole factor and most people with an established history should not encounter an issue like this. I believe the more truthful statement would be "due to other issues we've identified, your spending limit has been set at the highest previous monthly statement you have had with us."

No pre-set spending limit on purchases does not mean unlimited spending. Your purchases are approved based on a variety of factors, including current spending patterns, your payment history, credit record, and financial resources known to us.

Edit: Janus's post came in while I was typing this, and addressed the reason I felt the need to type this reply out. I don't want this to sound like I'm blaming SJ, but it's not the norm and I think he was just given an incomplete reasoning for the limit being imposed. Again, many years of experience tells me that I can go months or even a year or two without making a huge purchase and then when I do, there is no question in mind that the charge will be approved.

Agree.

Yes, the card is definitely not "garbage" as OP has had historical use of it without any grievances. Yes, it makes it a bit more restrictive, but this restriction is periodically reviewed and when AmEx is more comfortable with an overall profile, it can be lifted.

OP, my gut feeling tells me they've been watching the increase utilization and score deterioration (amongst other factors) to limit their exposure. I wouldn't take it personally.

Re: Amex gold card spending limited

redpat — Thu, 16 Jan 2020 21:46:21 GMT

@FinStar wrote:
@K-in-Boston wrote:
"Declined because of [my] prior spending patterns" sounds like the CSR giving the blanket answer. NPSL is determined by much more than that. I'll go ages without making a big charge on my charge cards and then suddenly there's 4 or 5 digits in one shot. Unfortunately, I think it's sympomatic of the other AA you've seen. While recent charges do certainly factor into the decision-making, they're not the sole factor and most people with an established history should not encounter an issue like this. I believe the more truthful statement would be "due to other issues we've identified, your spending limit has been set at the highest previous monthly statement you have had with us."

No pre-set spending limit on purchases does not mean unlimited spending. Your purchases are approved based on a variety of factors, including current spending patterns, your payment history, credit record, and financial resources known to us.

Edit: Janus's post came in while I was typing this, and addressed the reason I felt the need to type this reply out. I don't want this to sound like I'm blaming SJ, but it's not the norm and I think he was just given an incomplete reasoning for the limit being imposed. Again, many years of experience tells me that I can go months or even a year or two without making a huge purchase and then when I do, there is no question in mind that the charge will be approved.
Agree.

Yes, the card is definitely not "garbage" as OP has had historical use of it without any grievances. Yes, it makes it a bit more restrictive, but this restriction is periodically reviewed and when AmEx is more comfortable with an overall profile, it can be lifted.

OP, my gut feeling tells me they've been watching the increase utilization and score deterioration (amongst other factors) to limit their exposure. I wouldn't take it personally.

Re: Amex gold card spending limited

FinStar — Thu, 16 Jan 2020 21:47:11 GMT

@wasCB14 wrote:
I'm not sure what to think. At first, I thought it was a matter of overall utilization...but Amex hasn't slashed OP's significant revolving lines with them, or put OP through FR or demanded POI.

I thought I had broken the "three times highest paid balance in the last 6 months" rule (or however Amex defines it) on Schwab in 2018, but by a hair I stayed within 3x. I've definitely done major BBP spend out of the blue, but that's a revolver and not a charge card.

I believe their internal algorithms can determine where the "cuts" can be made, but this might be a starting point.

I recall a poster at one point mentioning a restriction was placed on their internal limit for the Platinum card, followed by removal of the POT feature on the Gold Card, and gradually (but eventually) led to the slashing of 2 revolvers.

Re: Amex gold card spending limited

Aim_High — Thu, 16 Jan 2020 22:02:14 GMT

@FinStar wrote:
OP, my gut feeling tells me they've been watching the increase utilization and score deterioration (amongst other factors) to limit their exposure. I wouldn't take it personally.

I agree not to take it personally but I don't blame

@SouthJamaica's frustration with AMEX.

You're paying a huge annual fee.

You have a 'charge card' with NPSL.

And then a fairly modest $3K charge is declined with

primary reason based on OP's recent spending?!?!

I mean, seriously, this wasn't a $50K charge he tried to put through.

This is a "premium" card yet an effective $1700 "limit" is extremely low.

Even worse, you don't even KNOW what limit they are deeming acceptable

unless you get declined (how embarassing) or call them up.

While we may understand how AMEX is mitigating its' risk, I don't think it's fair from a consumer standpoint to not know your purchasing power. Would we be so accepting of a credit card with a preagreed limit suddenly denying charges and changing the credit limit unexpectedly without even pre-notifying the consumer? I doubt many would defend that from a lender.

Re: Amex gold card spending limited

tparks5961 — Thu, 16 Jan 2020 22:03:40 GMT

If I'm reading your profile correctly, its saying you owe $558,000.00 your credit cards with a total collective credit line of $639,500.00.

I'm sure at this point you'd be paying at least 20%/yr or almost $10,000.00/ month in interest. I believe at this point it is about risk management.

I have a platinum card and a $3,000.00 transaction was declined. I called and my interal limit was $3,000.00.. with a $595 AF, plus annual fee for 2 gold cards.. I wanted to throw the card in the nearest lake.. but didn't.

After 4 months of use, my internal limit is up to $14,500.00.. Although last month they shut down all of my accounts and required a payment because my balance was $10,500.00.. I had already run up and paid off $17000.00 worth of charges within the month,, and they still shut my accounts.. I made the payment and they reopened them.

It's very frustrating dealing with them atm.. and im hoping at some point they learn to trust me more.. Using my cards until the shut them down each month will get old fast.

Re: Amex gold card spending limited

wasCB14 — Thu, 16 Jan 2020 22:13:35 GMT

@tparks5961 wrote:
If I'm reading your profile correctly, its saying you owe $558,000.00 your credit cards with a total collective credit line of $639,500.00.

I'm sure at this point you'd be paying at least 20%/yr or almost $10,000.00/ month in interest. I believe at this point it is about risk management.

I have a platinum card and a $3,000.00 transaction was declined. I called and my interal limit was $3,000.00.. with a $595 AF, plus annual fee for 2 gold cards.. I wanted to throw the card in the nearest lake.. but didn't.

After 4 months of use, my internal limit is up to $14,500.00.. Although last month they shut down all of my accounts and required a payment because my balance was $10,500.00.. I had already run up and paid off $17000.00 worth of charges within the month,, and they still shut my accounts.. I made the payment and they reopened them.

It's very frustrating dealing with them atm.. and im hoping at some point they learn to trust me more.. Using my cards until the shut them down each month will get old fast.

No. Total credit limits are ~$640k, but ~$80k doesn't appear on OP's credit report. Reasons for this happening can vary, but the most common is that it's a small business card. Not all lenders report those. My BBP doesn't report personally.

OP still has a significant amount of credit card debt...somewhere in the ballpark of $100k-$150k IIRC. But not $558k.

Re: Amex gold card spending limited

SoDenied — Thu, 16 Jan 2020 22:19:12 GMT

Just chiming in, take whatever I say with a grain of salt.

The card is worth it's $250 fee because of the airline credit and $120 grubhub credit plus zero restriction on 4x at resturant and a generous cap on groceries.

When I first got the card, I couldn't charge anything more than $300, after about 7 straight months of continous usage, I am at $68,000 approval.

It's a good card to keep if you find yourself being able to use it for expenses you'll get paid back for in the future. It has let me down a few times with "fraud review" "spend review" etc, but phased out after a year.

Re: Amex gold card spending limited

SouthJamaica — Thu, 16 Jan 2020 22:30:32 GMT

@tparks5961 wrote:
If I'm reading your profile correctly, its saying you owe $558,000.00 your credit cards with a total collective credit line of $639,500.00.

I'm sure at this point you'd be paying at least 20%/yr or almost $10,000.00/ month in interest. I believe at this point it is about risk management.

I have a platinum card and a $3,000.00 transaction was declined. I called and my interal limit was $3,000.00.. with a $595 AF, plus annual fee for 2 gold cards.. I wanted to throw the card in the nearest lake.. but didn't.

After 4 months of use, my internal limit is up to $14,500.00.. Although last month they shut down all of my accounts and required a payment because my balance was $10,500.00.. I had already run up and paid off $17000.00 worth of charges within the month,, and they still shut my accounts.. I made the payment and they reopened them.

It's very frustrating dealing with them atm.. and im hoping at some point they learn to trust me more.. Using my cards until the shut them down each month will get old fast.

No you're not reading the signature correctly, those are my limits, not how much I owe.

Re: Amex gold card spending limited

SouthJamaica — Thu, 16 Jan 2020 22:32:57 GMT

@SoDenied wrote:
Just chiming in, take whatever I say with a grain of salt.

The card is worth it's $250 fee because of the airline credit and $120 grubhub credit plus zero restriction on 4x at resturant and a generous cap on groceries.

When I first got the card, I couldn't charge anything more than $300, after about 7 straight months of continous usage, I am at $68,000 approval.

It's a good card to keep if you find yourself being able to use it for expenses you'll get paid back for in the future. It has let me down a few times with "fraud review" "spend review" etc, but phased out after a year.

I found myself struggling to use it in order to justify the $250 annual fee. E.g., I was eating in Shake Shack once a month to get the $10 meal credit [I don't like to use Grub Hub because it takes about a 25% cut overall away from the restaurant owners].

Now I don't have to go to Shake Shack any more

Re: Amex gold card spending limited

Trikoret — Thu, 16 Jan 2020 22:49:30 GMT

How long you had the account for?

Re: Amex gold card spending limited

SouthJamaica — Thu, 16 Jan 2020 22:58:15 GMT

@Trikoret wrote:
How long you had the account for?

A little over a year.