topic Re: AmEx CLD in Credit Cards

AmEx CLD

SBR249 — Wed, 26 Feb 2020 21:28:32 GMT

So just wanted to ask whether anyone's had a similar experience.

AmEx just CLDed me on my oldest account $13k -> $7500. I've been basically SDing the card most of the time. My FICOs are in the upper 700s, no lates, no derogs, haven't applied for any credit in at least a year. I do have a large credit portfolio (total CL ~2x my income) but like I said, I haven't applied for any new cards or CLIs in a year. There hasn't been any changes in my spending or utilization and I PIF all my cards.

Is this just AmEx tightening its belt and being more stingy with unused credit?

Re: AmEx CLD

Anonymous — Wed, 26 Feb 2020 21:31:29 GMT

They can be stingy sometimes with unused credit. There was a post the other day about this. When was the last time you used the card?

Re: AmEx CLD

SBR249 — Wed, 26 Feb 2020 21:33:28 GMT

I used it 2 days ago and I use it on a small auto subscription every 4 weeks

Re: AmEx CLD

SBR249 — Wed, 26 Feb 2020 21:38:22 GMT

As an update, I called AmEx about this and they said that it's based on a periodic review and apparently the CLD was due to the usage pattern which is fair.

The CSR on the phone offered me the chance for a review with the potential to restore the CL if I volunteered some info. So he asked for income and assets then was able to restore my CL. I confirmed with him, no hard pull.

All's well that ends well. I guess AmEx could read the writing on the economic wall.

Re: AmEx CLD

Anonymous — Wed, 26 Feb 2020 21:43:48 GMT

Glad you were able to get it restored.

You are not the only one that this has happened too, Amex just wants better usage.

Re: AmEx CLD

AllZero — Wed, 26 Feb 2020 21:45:32 GMT

Glad to read that you were able to get your CL back.

Re: AmEx CLD

Anonymous — Wed, 26 Feb 2020 21:47:24 GMT

Correct. This started becoming more common for members here last year with quite a few people getting 50% CLDs, many of which were restored with a quick phone call.

Re: AmEx CLD

Anonymous — Wed, 26 Feb 2020 21:51:56 GMT

Glad to hear you got your CL back! 👍

Re: AmEx CLD

SBR249 — Wed, 26 Feb 2020 21:54:10 GMT

I've actually been thinking about trimming my credit portfolio anyway. But this is my only MR card and also one of my oldest so I keep it for sentimental reasons and also for when Amazon runs those discounts when you use at least one MR to pay. I'm just surprised because I've never gotten a CLD/AA on it even through the Great Recession and even when I didn't use it for months on end during that period. It seems that lenders have really changed how they do business these days.

Re: AmEx CLD

M_Smart007 — Wed, 26 Feb 2020 21:57:25 GMT

Glad you got your CL restored OP !

Re: AmEx CLD

Anonymous — Wed, 26 Feb 2020 22:08:57 GMT

@SBR249 wrote:
I've actually been thinking about trimming my credit portfolio anyway. But this is my only MR card and also one of my oldest so I keep it for sentimental reasons and also for when Amazon runs those discounts when you use at least one MR to pay. I'm just surprised because I've never gotten a CLD/AA on it even through the Great Recession and even when I didn't use it for months on end during that period. It seems that lenders have really changed how they do business these days.

There is somewhat of a tradeoff between maintaining a number of cards with desired CLs and maximizing rewards.

When you maximize rewards, you have to SD cards temporarily to do so. I don't think putting a charge on a card every 6 months is the safest way. I put something on all my cards usually every month. It's not a fail safe way to prevent CLDs, but I bet it doesn't hurt.

Doing so prevents me from maximizing rewards, but I think helps me to maintain 10 cards that have not had AA and I wish to keep as is.

Re: AmEx CLD

AverageJoesCredit — Thu, 27 Feb 2020 00:08:49 GMT

@SBR249 wrote:
As an update, I called AmEx about this and they said that it's based on a periodic review and apparently the CLD was due to the usage pattern which is fair.

The CSR on the phone offered me the chance for a review with the potential to restore the CL if I volunteered some info. So he asked for income and assets then was able to restore my CL. I confirmed with him, no hard pull.

All's well that ends well. I guess AmEx could read the writing on the economic wall.

No i dont think it has to do with economy. Using a 13K for only a small monthly subscription is a waste of the limit they gave in their eyes. I think if more lenders did this , we myFicoens would be in alot of trouble

Re: AmEx CLD

seattletravels — Thu, 27 Feb 2020 00:27:49 GMT

Glad you were able to get it restored!

Re: AmEx CLD

NRB525 — Thu, 27 Feb 2020 09:18:32 GMT

@AverageJoesCredit wrote:
@SBR249 wrote:
As an update, I called AmEx about this and they said that it's based on a periodic review and apparently the CLD was due to the usage pattern which is fair.

The CSR on the phone offered me the chance for a review with the potential to restore the CL if I volunteered some info. So he asked for income and assets then was able to restore my CL. I confirmed with him, no hard pull.

All's well that ends well. I guess AmEx could read the writing on the economic wall.
No i dont think it has to do with economy. Using a 13K for only a small monthly subscription is a waste of the limit they gave in their eyes. I think if more lenders did this , we myFicoens would be in alot of trouble

All of the 50% CLD I am aware of are on the no-AF cards.
If you were a bank, would you prefer AF or no-AF cards?

If you were a non-MyFICO reader who didn't know about asking for the CL back, would a little-used card getting the CL cut in half matter enough to call AMEX?

I agree it is less about the economy, more about AMEX managing their lending offerings.

Re: AmEx CLD

Anonymous — Thu, 27 Feb 2020 16:59:01 GMT

@NRB525 wrote:
@AverageJoesCredit wrote:
@SBR249 wrote:
As an update, I called AmEx about this and they said that it's based on a periodic review and apparently the CLD was due to the usage pattern which is fair.

The CSR on the phone offered me the chance for a review with the potential to restore the CL if I volunteered some info. So he asked for income and assets then was able to restore my CL. I confirmed with him, no hard pull.

All's well that ends well. I guess AmEx could read the writing on the economic wall.
No i dont think it has to do with economy. Using a 13K for only a small monthly subscription is a waste of the limit they gave in their eyes. I think if more lenders did this , we myFicoens would be in alot of trouble
All of the 50% CLD I am aware of are on the no-AF cards.
If you were a bank, would you prefer AF or no-AF cards?
If you were a non-MyFICO reader who didn't know about asking for the CL back, would a little-used card getting the CL cut in half matter enough to call AMEX?
I agree it is less about the economy, more about AMEX managing their lending offerings.

I'd buy that notion that AF cards more likely to see CLD. Would you be less willing to piss off a customer if they were paying an AF? Probably.

Re: AmEx CLD

pinkandgrey — Thu, 27 Feb 2020 17:04:41 GMT

Well it kind of makes sense. Why would they hand out a ton of credit to someone who doesn't use it? They could be allotting that to people who spend heavily on their Amex cards. Personally, I would just close a card that I wasn't using. The ONE exception would be if I absolutely needed the utilization padding at the moment.

Sorry about the CLD though!

Re: AmEx CLD

Chris679 — Fri, 28 Feb 2020 01:37:41 GMT

@pinkandgrey wrote:
Well it kind of makes sense. Why would they hand out a ton of credit to someone who doesn't use it? They could be allotting that to people who spend heavily on their Amex cards. Personally, I would just close a card that I wasn't using. The ONE exception would be if I absolutely needed the utilization padding at the moment.
Sorry about the CLD though!

Downside to closing cards is that they may come out with a new product that fits perfect for your spending like Cap One Savor or Citi DC for me. Then you PC that old SD card and keep all of the history. Upside to closing is of course not trying to manage a bunch of cards you don't use. I use them exactly once per year and don't worry if were to get closed.

Re: AmEx CLD

Save-n-Invest — Fri, 28 Feb 2020 18:46:42 GMT

Amex CLD one of my cards too. It's just Amex sending me one more invitation not to be a customer.

Yesterday's mail was a special invite for a 1.99% apr for nine months on the other card. Kooks!

Re: AmEx CLD

Save-n-Invest — Sat, 29 Feb 2020 17:19:46 GMT

@SBR249 wrote:
As an update, I called AmEx about this and they said that it's based on a periodic review and apparently the CLD was due to the usage pattern which is fair.

The CSR on the phone offered me the chance for a review with the potential to restore the CL if I volunteered some info. So he asked for income and assets then was able to restore my CL. I confirmed with him, no hard pull.

All's well that ends well. I guess AmEx could read the writing on the economic wall.

Glad your credit limit was restored.

I phoned American Express yesterday using the phone number on the letter offering 1.99% for nine billing periods on BCE. I was not interested in the promo. I used that phone number because it was handy.

My reason for the call was to verify that there was nothing untoward on my account. The promo letter for BCE arrived the same day AA was taken on Blue. The rep I spoke to wanted me to take the promo of course. She also offered me an opportunity to request a CLI on the AA card. I declined. Next she offered to PC Blue with the slashed limit to Cash Magnet. I'm not familiar with that card. She said it's a cash back card.

My understanding is that American Express does not PC an MR card to a cash back card. Has that changed? I asked to have Blue PCd to BCE at one time and was declined. A new application was needed for BCE.

The call eventually was transfered to someone referred to as a specialist. I confirmed the info they had on file such as phone number etc. The specialist asked for a few more items that I didn't have at my fingertips. My 2019 data is in the CPA's office for tax filing. I told her I could do guesstimates but would do so on the conservative side. That seemed to work. One item I could not even guesstimate without the completed tax return. She was ok with that too. The specialist said AA was taken as there in no activity this calendar year. It's only February?

Oh, the original credit limit on Blue was restored.

My question now is does American Express PC MR cards to cash back now? I'm confused a little by that call.

Thanks for you help.

Re: AmEx CLD

FinStar — Sat, 29 Feb 2020 19:12:22 GMT

@Save-n-Invest wrote:
My question now is does American Express PC MR cards to cash back now? I'm confused a little by that call.

Thanks for you help.

MR products cannot be PC'd to Cash Back products and viceversa - biz or personal.