topic Re: Combining AMEX Limits in Credit Cards

Combining AMEX Limits

Anonymous — Fri, 24 Jul 2020 19:03:18 GMT

Hello Forum -

Been a while since posting, hope everyone is doing well and keeping safe.

I've read a lot about combining CLs here on the forum, but I have a quick question: for the first time I am considering combining CLs; specifically moving my $0 bal $2K CL Cash Magnet to my $4K CL Blue Cash Preferred. What happens to the card from wich the CL will be taken? Is it automatically closed by the creditor, in this case AMEX? Or would I have to close it? And if so, is there any impact to my FICO, given the bal and CL would both be $0? Please advise, thanks!

Soup

Re: Combining AMEX Limits

coldfusion — Fri, 24 Jul 2020 19:08:42 GMT

In most cases you must have held the donor card for at least 13 months. The exact amount can vary from person to person but there is a mininum amount that you must keep on the donor card, generally either $500 or $1000.

Closing the donor card is a completely disassociated activity. You can choose to close the card afterward if you want, keeping in mind that it's best practice particularly with AMEX to keep a card open for at least 12 months before closing it.

Effect on FICO? Minimal if any, given that you have a $0 balance on both cards.

Re: Combining AMEX Limits

Anonymous — Fri, 24 Jul 2020 19:12:56 GMT

Ah, okay - so it's not transferring the entire balance? Also, only the donor card (thanks for the terminology) has a $0 balance. I have about $400 on the BCP. Do they both need to be $0 bals? I opened both cards in 2018, so they are both 24+ months.

Thanks!!

Re: Combining AMEX Limits

coldfusion — Fri, 24 Jul 2020 19:19:50 GMT

Correct, you cannot transfer the entire CL off the donor card. You don't need to have a $0 balance on the recipient card AFAIK.

If/when you go to initiate a transfer of CL the app will tell you exactly how much you must keep on the donor card. If you close that card that CL is lost and cannot be transferred to a different card, you'd have to pick it up again either via a CLI request or by getting approved for another card.

Re: Combining AMEX Limits

Anonymous — Fri, 24 Jul 2020 19:21:52 GMT

Thank you for the guidance - much appreciated!

Re: Combining AMEX Limits

Anonymous — Fri, 24 Jul 2020 21:44:54 GMT

Now's not a good time to combine limits. Imagine if you combine limits and then that new limit gets slashed. Where will go you, then? Keep the limits about even and it will both hedge the effects if one gets slashed and the remaining card can still have substantial limit if you need it.

Re: Combining AMEX Limits

Anonymous — Fri, 24 Jul 2020 22:54:26 GMT

@Anonymous wrote:
Now's not a good time to combine limits. Imagine if you combine limits and then that new limit gets slashed. Where will go you, then? Keep the limits about even and it will both hedge the effects if one gets slashed and the remaining card can still have substantial limit if you need it.

Well, that would suck. Would it get slashed due tosomething beyond my control? Is that a common occurrence?

Re: Combining AMEX Limits

coldfusion — Fri, 24 Jul 2020 23:39:57 GMT

Most of the things that trigger a credit limit decrease are within your control.

Every once in a while AMEX will review accounts and if someone has a big credit limit with hardly any spend they will sometimes decrease the credit limit. However, that usually involves cards with credit limits way higher than yours even after combining your limits, and in a significant percentage of cases a simple phone call to AMEX is enough to get the limit restored.

Don't run up a balance and just make mininum payments for several months.

Don't cycle your credit limit multiple times per month i.e. don't run up balances close to your credit limit and then pay them off immediately multiple times a month. That attracts eyes to your account.

If you have something serious going on with your general financial situation your limit may get cut but if that's the case a credit limit decrease is probably not going to be your biggest worry.

Re: Combining AMEX Limits

Anonymous — Sat, 25 Jul 2020 00:52:09 GMT

@coldfusion wrote:

Most of the things that trigger a credit limit decrease are within your control.

Every once in a while AMEX will review accounts and if someone has a big credit limit with hardly any spend they will sometimes decrease the credit limit. However, that usually involves cards with credit limits way higher than yours even after combining your limits, and in a significant percentage of cases a simple phone call to AMEX is enough to get the limit restored.

Don't run up a balance and just make mininum payments for several months.

Don't cycle your credit limit multiple times per month i.e. don't run up balances close to your credit limit and then pay them off immediately multiple times a month. That attracts eyes to your account.

If you have something serious going on with your general financial situation your limit may get cut but if that's the case a credit limit decrease is probably not going to be your biggest worry.

Makes sense. Thanks for providing context! MUCH APPRECIATED!

Re: Combining AMEX Limits

Aim_High — Sat, 25 Jul 2020 19:51:58 GMT

@Anonymous wrote:
@coldfusion wrote:

Most of the things that trigger a credit limit decrease are within your control.

Every once in a while AMEX will review accounts and if someone has a big credit limit with hardly any spend they will sometimes decrease the credit limit. However, that usually involves cards with credit limits way higher than yours even after combining your limits, and in a significant percentage of cases a simple phone call to AMEX is enough to get the limit restored.

Don't run up a balance and just make mininum payments for several months.

Don't cycle your credit limit multiple times per month i.e. don't run up balances close to your credit limit and then pay them off immediately multiple times a month. That attracts eyes to your account.

If you have something serious going on with your general financial situation your limit may get cut but if that's the case a credit limit decrease is probably not going to be your biggest worry.
Makes sense. Thanks for providing context! MUCH APPRECIATED!

I like the combining limits strategy when banks allow it. IMO, it may actually make a CLD *LESS* likely than if you kept two separate lower balances. That's assuming you are combining the limits onto the more useful card where you can concentrate more of your spending, and consequently the single account may show a higher level of activity than the two separate accounts.

Also, as pointed out, your limits are not high enough to be targeted by most lenders for a CLD. They tend to leave more credit lines under $5K to $10K alone unless there is a reason they believe risk is increasing.

Certainly, as long as you're not engaging in the riskier practices as pointed out by @coldfusion, you probably don't need to worry.

Re: Combining AMEX Limits

Anonymous — Sun, 26 Jul 2020 00:16:15 GMT

Thanks for the additional input - I feel even more confident moving forward.