topic Re: Amex shut downs in Credit Cards

Amex shut downs

tparks5961 — Sat, 07 Mar 2020 23:50:29 GMT

So Amex shut down my accounts 2 times in January for usage... I avoided a shutdown in February and I got an account shutdown 3/5.

I have the Amex platinum "Npsl" and was just approved a couple weeks ago for the blue business plus. This really is a complicated company to deal with if you have a lot of spend but not a lot of history with them. My internal spending limit was $2500.00 when I first got the card in September. Through brute force, my spending limit is up to $20,000.00 as of Mar 5th. I had to call in to get the purchase authorized but all of my accounts were shut down the next day following a $10000.00 transaction and a $20,000.00 balance. They demanded a payment to reinstate the accounts.

I'm sure to let them know how much I hate the card every time they shut them all down. So much so I applied for the blue business plus card so that I could get a preset spending limit. The application was initially declined, I requested a reconsideration and was approved for $2,000.00, I told the lady on the phone... $2,000.00... Sooo extremely frustrating.

My spend so far this month is $36,023.00. I think my average statement balance is $2400.00 because I always pay most of it off before the statement cuts. The representative said that was holding back my internal limit because my balance every month is only 2400.00. I told her if they would stoop shutting down all of my accounts, I would let the balance post before paying it.

Has anyone else had this much trouble getting your limit up with Amex?

Re: Amex shut downs

SBR249 — Sun, 08 Mar 2020 00:13:03 GMT

Sorry to hear about your troubles OP, I get the sense that AmEx is becoming a lot more conservative and cautious in recent months.

One thing to ask, is your reported income seemingly not "consistent" with the amount of spend you are putting on your cards? Are you running business expenses through your personal cards? Maybe AmEx algorithms are having trouble reconciling your spend with what it thinks is your ability to pay and thus are flagging your account as higher risk.

Re: Amex shut downs

Anonymous — Sun, 08 Mar 2020 00:21:23 GMT

I don't have any no preset limit cards with amex but I do have their everyday card. They chopped my limit up and lowered it to 500 so I may try to get it raised, if they won't I'll probably just cancel it. I guess I didn't use it enough or maybe had too big of a charge that scared them.

Amex seems to be cutting lines lately for some. My other issuers have all raised my lines at least by 1000 or more

Re: Amex shut downs

Anonymous — Sun, 08 Mar 2020 00:34:10 GMT

You've already spent $36K on the cards and we are not even a third of the way into the month? Unless you have a 1.5+ million dollar income, it's easy to see why they're having issues.

Re: Amex shut downs

Remedios — Sun, 08 Mar 2020 00:40:45 GMT

Okay, maybe I cant read, but did your cards actually got shut down, or are you just having charges declined till you make a payment?

Re: Amex shut downs

CreditCuriosity — Sun, 08 Mar 2020 00:50:21 GMT

@Remedios wrote:
Okay, maybe I cant read, but did your cards actually got shut down, or are you just having charges declined till you make a payment?

dont believe they are shut down they just want payment before allowing him/her to spend more. Not a shut down just worried about their money getting paid back. OP can you share some of your profile such as scores other cards limits/usage etc? Certainly not uncommong for Amex to do this to new card members running those $ through a npsl limit depending on many factors....

edit: saw sig and a few decent limits, but score are a bit on the low side at 720ish.. what is holding them down utilization or something else? Appears from 2018 scores in 500 to 700's now probably a negtive or two still as rebuild? Also how long is your credit history etc?

Re: Amex shut down

tparks5961 — Sun, 08 Mar 2020 00:51:52 GMT

My reported income is pretty good. They just said this is the process to get my spending limit up. I think I can actually ask for a voluntary financial review... which would help out I think.

Re: Amex shut downs

tparks5961 — Sun, 08 Mar 2020 00:54:45 GMT

My statement date is the 8th of every months, So that's my spending for the month.

What you said does make sense... my income has grown considerably over the past two years. On my app I reported 1/3rd of my actual income since I haven't filed taxes for 2019 yet. I can see this being a factor.

Re: Amex shut downs

tparks5961 — Sun, 08 Mar 2020 00:56:14 GMT

No they shut them all down lol. When you log on there's a little red triangle with an exclamation mark in the middle. It also says your accounts are suspended.

Re: Amex shut downs

tparks5961 — Sun, 08 Mar 2020 01:00:19 GMT

I have no negatives just a lot of news credit over the past year. Uti is 18% currently and scores in sig are correct.

I really want to work with Amex so im willing to work through the shut downs for now.

Re: Amex shut downs

SBR249 — Sun, 08 Mar 2020 01:01:11 GMT

@tparks5961 wrote:
My statement date is the 8th of every months, So that's my spending for the month.

What you said does make sense... my income has grown considerably over the past two years. On my app I reported 1/3rd of my actual income since I haven't filed taxes for 2019 yet. I can see this being a factor.

Before you ask for a voluntary financial review, you can try to update your income with AmEx and see if that'll get those risk algorithms to back off. After you do that, if AmEx still has doubts, they could possibly ask for a financial review anyway.

Re: Amex shut downs

K-in-Boston — Sun, 08 Mar 2020 01:24:06 GMT

Do any of your business credit cards currently appear on your personal Experian credit report? I ask because your personal cards all have very modest limits according to your signature, while all of the 5-digit ones are business cards. If those are not visible to Amex, it's probably adding to the risk algorithm that you're running such high spending through their cards that are multiples of the remainder of your credit lines. I would certainly update your income to reflect the true numbers as well. If you're reporting $150k income but on track to spend $400k annually, it'll certainly give them pause, especially if you're new to them. For a 4506-T request, Amex will only accept 2017 and 2018 tax transcripts (that will be 2018 and 2019 in August), but a in a full FR they will accept additional documentation, so it may be worth discussing with them the possibility of willfully doing that. As they get to know you, these issues go away, and they're usually only seen with those who have blemished credit profiles or those that are doing a LOT right out of the gate with no prior relationship and/or other existing credit lines that show them that this is your norm.

Re: Amex shut downs

Creditaddict — Sun, 08 Mar 2020 03:29:07 GMT

Are all you amex cards personal?

but you are running business?

Amex is really good these days on the business charge cards to issue you a "pay over time" limit right out of the gate and you are pretty much guaranteed to be able to spend to that limit with zero issue and gain more spending power quickly with use but as others have said charging $30+k on personal cards and having no other cards close to that kind of limit and amex not seeing your real income and assets, they are going to need a little foreplay first!!

I would suggest working on the charge card, not all your amex cards at the same time!

Re: Amex shut downs

adelphi_sky — Tue, 10 Mar 2020 17:15:01 GMT

It could be Amex preparing for a recession. I recall them doing this in 2008 and 2009. People were having their cards closed even though they had excellent payment histories with Amex. It is still unfortunate that so many good customers are affected by Amex's perceived risk. Some of us fall within some bucket that triggers Amex to cut, slash, and close whether we've ever missed a payment or not or whether we have excellent credit or not. And the current economic turmoil is spooking a lot of banks. Expect more scrutiny. Especially if we head into a recession.

Re: Amex shut downs

Anonymous — Tue, 10 Mar 2020 17:32:19 GMT

I think the biggest problem some people have with Amex, is that they think a NPSL automatically allows them to run higher charges through it right out of the gate. For some it's possible, but generall they have already had a good relationship with them. And their profile supports it.

Others barely get in with their low score/thin file and expect to run $10K charges, then get upset when it's declined or when Amex asks for it to be paid down. A charge card isn't a limitless alternative to CC's like some believe, that right has to be earned over time. And based on the personal cards in your sig, as well as where your score was when you likely apped for the cards. Amex just isn't comfortable with you file at this time.

Re: Amex shut downs

adelphi_sky — Tue, 10 Mar 2020 18:31:55 GMT

@Anonymous wrote:
I think the biggest problem some people have with Amex, is that they think a NPSL automatically allows them to run higher charges through it right out of the gate. For some it's possible, but generall they have already had a good relationship with them. And their profile supports it.

Others barely get in with their low score/thin file and expect to run $10K charges, then get upset when it's declined or when Amex asks for it to be paid down. A charge card isn't a limitless alternative to CC's like some believe, that right has to be earned over time. And based on the personal cards in your sig, as well as where your score was when you likely apped for the cards. Amex just isn't comfortable with you file at this time.

I think their would be less confusion if AMEX, from the start, said, "Congrats! You're approved for our charge card. Here is your initial credit limit based on your profile." Instead of people walking up to a cash register and getting declined. Then having to call Amex to find out what's going on. AMex should just make people aware up front. Even when my limit was nixed, they sent an email AFTER my wife found out at the cash register. This is 2020. Amex can do better at communication. Set expectations up front.

Re: Amex shut downs

Creditaddict — Tue, 10 Mar 2020 18:34:45 GMT

@adelphi_sky wrote:
@Anonymous wrote:
I think the biggest problem some people have with Amex, is that they think a NPSL automatically allows them to run higher charges through it right out of the gate. For some it's possible, but generall they have already had a good relationship with them. And their profile supports it.

Others barely get in with their low score/thin file and expect to run $10K charges, then get upset when it's declined or when Amex asks for it to be paid down. A charge card isn't a limitless alternative to CC's like some believe, that right has to be earned over time. And based on the personal cards in your sig, as well as where your score was when you likely apped for the cards. Amex just isn't comfortable with you file at this time.
I think their would be less confusion if AMEX, from the start, said, "Congrats! You're approved for our charge card. Here is your initial credit limit based on your profile." Instead of people walking up to a cash register and getting declined. Then having to call Amex to find out what's going on. AMex should just make people aware up front. Even when my limit was nixed, they sent an email AFTER my wife found out at the cash register. This is 2020. Amex can do better at communication. Set expectations up front.

With business they ask during activation your monthly spend needs and they will let you know if that fits within or not.

not sure why they don't do it with personal too but

Re: Amex shut downs

Anonymous — Tue, 10 Mar 2020 20:02:46 GMT

I don't want to sound negative but spending thousands of your "new friend's" dollars as soon as they say you can. Would spook anyone.

Unless you don't have any other cards I would avoid spooking Amex and causing issues. Use other cards to put your spend on at least for 60 or 90 days.

Build up the trust. Their algorythms are there for a reason. They have been burned a lot.

Amex is constantly sueing celebs for millions of dollars. This isn't the best publicity for them.

I was new to Amex in Febuary and I want to avoid any situations that give them pause to think that I am not worth dealing with.

I spent 1.5 k on my first amex card in week. They sent an email to ask for payment which I did right away.

Re: Amex shut downs

adelphi_sky — Tue, 10 Mar 2020 20:30:51 GMT

@Anonymous wrote:
I don't want to sound negative but spending thousands of your "new friend's" dollars as soon as they say you can. Would spook anyone.
Unless you don't have any other cards I would avoid spooking Amex and causing issues. Use other cards to put your spend on at least for 60 or 90 days.
Build up the trust. Their algorythms are there for a reason. They have been burned a lot.
Amex is constantly sueing celebs for millions of dollars. This isn't the best publicity for them.
I was new to Amex in Febuary and I want to avoid any situations that give them pause to think that I am not worth dealing with.
I spent 1.5 k on my first amex card in week. They sent an email to ask for payment which I did right away.

Should consumers, who have multiple credit options, be treating Amex like the hot-tempered relative by walking on eggs shells hoping not to upset him? That sounds like a dysfunctional relationship. I must say Chase has been rock steady with me so far. They don't touch my limits or anything. As long as I pay on time. With so many other things to worry about, we should have to put our Amex products on special credit watch just in case Amex changes the account paramters at any time.

I like Amex. I have a long relationship with them. But they need to decide whether or not they are going to be consertive or liberal with their product line. I think what is catching most people off guard is that Amex Platinum /Gold has always been the product that offered "unlimited" spending. Now they are just throwing limits everywhere. And people are like, "Huh?"

Re: Amex shut downs

Creditaddict — Tue, 10 Mar 2020 20:35:15 GMT

I think reality is those that have issues with Amex right in the beginning have no other credit that comes close to being able to handle what they are trying to do.

everyone just looses there mind over Amex because of "no-preset" and yes I think it would be nice if they gave you some sort of ceiling number to watch for, that limit will literally go up each time they ask for a payment.

put the Amex app on your phone, card declined, log in, pay, swipe again.... it's really not serious. Not many other banks will give you charging power seconds after a payment since they don't know if that payment is good for days!