topic Re: Amex drastically cut my limit - my fault in Credit Cards

Amex drastically cut my limit - my fault

bradlin — Sat, 15 Jan 2022 16:23:18 GMT

Hello all.

During the last few months I was dealing with a rough divorce and I had to be abroad while dealing with it.

So I made a late payment on one of my student loans which reports as 4 30-day late payments on 4 notes. I missed the 30 day grace period by a few days. The account is now current.

It was reported yesterday and Amex immediately sent me an email saying my limit was reduced by 80%!

I have 7 years of perfect history with Amex. No late payments on any account until yesterday.

My plan of action is to contact the student loan company with a goodwill letter as I have always been on time with them. As I was overseas and my mind was distracted with my life situation, I did not receive any calls about my late payment. I hope I can get those late payments deleted with a goodwill letter.

It was a mistake but I corrected it within days of of the 30 day grace period.

Do you have any advice with how I should approach AmEx for reconsideration?

I recognize the reason why they CLD'd me. I have some balances on other cards but I have had much higher balances which I paid down to zero. My total utilization is around 30% after the CLD. My AmEx utilization is about 90% as they reduced my limit to within a few hundred dollars of my utilization.

I am willing to immediately bring my AmEx balance to zero.

Who should I contact?

As a side note while I was abroad I did not receive a letter from Barclaycard which stated that due to non use they will cancel my card if I don't use it within 30 days. I did not see the letter until after 60 days (they gave me 30 days grace). So they closed that account.

This has severely changed my total utilization % numbers as my total credit limit has dropped drastically. Almost 1/3 of my total credit line is gone. I'm worried about further action from other issuers as the double whammy hit my credit score hard.

Re: Amex drastically cut my limit - my fault

GApeachy — Sat, 15 Jan 2022 16:33:09 GMT

At least the card wasn't closed but......was the Barclay card closed and reported on your cr's plus the 30 day late reported before Amex reduced your cl? I doubt anyone will have their ears on as to why you were beyond 30 days but if your utl. on other tl's are high I'd try to concentrate on bringing those down (particularly Amex now) just to try to offset a snowball effect. Sorry this happened to you! Good Luck on the GW.

Re: Amex drastically cut my limit - my fault

bradlin — Sat, 15 Jan 2022 17:19:02 GMT

Barclaycard closed it for unrelated reasons before these lates hit my credit report. But yes both happened within a space of days. Their algorithm must have freaked out basically thinking i'm drowning in quicksand. I just want to explain to a person that I am not. The divorce will not affect my US finances either.

My util on other lines is between 30-90%.

The 90% is the take advantage of a 0% apr.

The rest are around 30%. I can pay AmEx down to $0.

Should I do that first and then GW?

Also should I call the number on the back of the card?

Call Amex executive CS?

e-mail executive CS/CEO?

mail a physical letter?

it seems it keeps changing which is the best path.

Re: Amex drastically cut my limit - my fault

GApeachy — Sat, 15 Jan 2022 17:26:37 GMT

@bradlin wrote:
Barclaycard closed it for unrelated reasons before these lates hit my credit report. But yes both happened within a space of days. Their algorithm must have freaked out basically thinking i'm drowning in quicksand. I just want to explain to a person that I am not. The divorce will not affect my US finances either.

My util on other lines is between 30-90%.

The 90% is the take advantage of a 0% apr.

The rest are around 30%. I can pay AmEx down to $0.

Should I do that first and then GW?

Also should I call the number on the back of the card?

or

Call Amex executive CS?

or

e-mail executive CS/CEO?

or

mail a physical letter?

it seems it keeps changing which is the best path.

IDK about GW letters, never done that but paging @FireMedic1 who can enlighten..... both with the GW and these high utl. cards and the order in which to knock them down. I just know that any ^ utl. percentages can and possibly will continue to add fuel to the fire. As they say around here though, "Finances over Fico" so do what you gotta do, do what you can do and ride the wave. GL!

Re: Amex drastically cut my limit - my fault

Yasselife — Sat, 15 Jan 2022 21:18:55 GMT

@bradlin

My advice on Amex is to keep making your payments as before (under 30%), I wouldn't risk making phone calls. I was balance chase by Amex for clicking the limit increase button while having high utilization, I was denied with a 5-7 letter response, this caught their attention and decreased my limit. I was +70% overall on my cards, good news is that once my credit got more stable I asked on the app(no person) again for an increase on the limit amount that was reduced and got approved while still having +30-40 overall uti.

You will get your limit back, try to stabilize your credit first with your student loans.

Re: Amex drastically cut my limit - my fault

bradlin — Sat, 15 Jan 2022 21:44:57 GMT

I think you're right. Too risky right now. My overall utilization is still under 30%. It's just the one 0% apr card is maxed out. None other are. Except now due to the whopping 80% CLD (I was under 15%) it is now at 90%. I made a payment today to drop it to 60%. I could just as well pay it off even and then call.

I just wonder how much it matters that one card is maxed out when overall your utilization is under 30%. It seems they look at that poorly. It's perfect rational to max out a 0% card. Anyway i'm chopping down the balances as quickly as I can.

That Amex was 1/3 of my entire credit limit of all cards. So it hit me hard. I think I can get total utilization under 20% soon and the Amex to 0%. Maybe put some space on the other cards too.

Re: Amex drastically cut my limit - my fault

Anonymous — Sun, 16 Jan 2022 00:35:01 GMT

I am sorry this happened to you. Lenders now pay to be notified of any negative info on your credit reports instantly (if they sign up for that service). They watch like a hawk and one negative item can set off AA such as what happened to you. From what I have read on this site a GW letter does create some good results but they are few and far between. As others said, just pay this down to 28.9% of your new CL so your utilization does not kill your scores.

Thanks

Mark

Re: Amex drastically cut my limit - my fault

FireMedic1 — Sun, 23 Jan 2022 16:34:53 GMT

I wish there was a magic trick to fix all this. But what you still have protect it. Get AMEX done and paid. AMEX sees the 90% card. But they dont know its a 0% APR thing. APR's aren't listed on reports. Then add Barclays closed by creditor account. So they are protecting themselves by the CLD. Get all the revolvers under control and below 8% overall util. Fix whats broken first.

I'll ping @calyx on how to deal with SL Lates. Wont be easy. In the end. No matter whats going on with life. Most creditors dont care. They just want to be paid on time and protect their $. It will all calm down eventually. But for now. Get out of debt. Then work on the SL late. Please dont take this the wrong way. It only takes a few minutes to check on your accounts once a week. Cant turn your back on that. Comes up on here all the time. Most of all. Savings Account. Ya got to put money into savings for moments like this. If everyone had a min of 1 month of bills saved. The GW threads would be a whole lot less.

Your doing the right thing now. Dont stop till its all paid. Then contact AMEX and explain what went down. I never was a barclays fan. No great loss in my eyes. Keep us updated and Good Luck!

Re: Amex drastically cut my limit - my fault

disdreamin — Sun, 16 Jan 2022 14:09:06 GMT

Not so much advice as a question - does AmEx balance chase? I see people suggesting paying the card down under a certain percentage, but is there a chance AmEx will again lower the CL once that is done?

OP, good luck and hope you are able to goodwill the SL late.

Re: Amex drastically cut my limit - my fault

bradlin — Mon, 17 Jan 2022 01:38:21 GMT

Thank you Mark3038 I will pay them down.

@Anonymous wrote:
I am sorry this happened to you. Lenders now pay to be notified of any negative info on your credit reports instantly (if they sign up for that service). They watch like a hawk and one negative item can set off AA such as what happened to you. From what I have read on this site a GW letter does create some good results but they are few and far between. As others said, just pay this down to 28.9% of your new CL so your utilization does not kill your scores.
Thanks
Mark

Re: Amex drastically cut my limit - my fault

bradlin — Mon, 17 Jan 2022 01:37:15 GMT

Thank you Firemedic1.

8% is a tall order but I think I could get that done in a few weeks.

I just put the SL into auto debit. I don't know I didn't do it already. Maybe just force of habit. I also paid them early for this month.

Everyone says the same about Barclaycard and I wrote to their executive customer service. I hope they reopen it just to help lower my utilization.

I guess after I get everything under 8% I'll contact AmEx. I hope they can restore the limit.

Re: Amex drastically cut my limit - my fault

FireMedic1 — Mon, 17 Jan 2022 10:42:09 GMT

@bradlin It may take some work and discipline. But once your there. Bet you wont go back. I'll ping @Brian_Earl_Spilner . He's more knowledgeable than I on AMEX and how they tick. You got this dude!

Re: Amex drastically cut my limit - my fault

CreditInspired — Mon, 17 Jan 2022 12:23:37 GMT

@bradlin wrote:
Barclaycard closed it for unrelated reasons before these lates hit my credit report. But yes both happened within a space of days. Their algorithm must have freaked out basically thinking i'm drowning in quicksand. I just want to explain to a person that I am not. The divorce will not affect my US finances either.

My util on other lines is between 30-90%.

The 90% is the take advantage of a 0% apr.

The rest are around 30%. I can pay AmEx down to $0.

Should I do that first and then GW?

Also should I call the number on the back of the card?

or

Call Amex executive CS?

or

e-mail executive CS/CEO?

or

mail a physical letter?

it seems it keeps changing which is the best path.

Hi OP

You got some great, informative, and very helpful responses from everyone here and there is nothing I can add to what your next steps should be. However, I want to point out the bolded part. Even though you say, you're not drowning, I ask that you step back and take another look at your overall credit profile.

For example, are you only making min pymts on your other CCs? Are you paying interest on your other CCs? And, since AmX loves transactors, this 90% UT creates a big problem even with it being 0% APR.

Even if you're not drowning in quicksand, your credit behavior has become too risky and they're covering their bases. And as FireMedic has said, please work diligently to get your aggregate UT to under 9%.

The good thing is you know you can do this and once you start, the dominos will stop falling. GL2U

Re: Amex drastically cut my limit - my fault

Brian_Earl_Spilner — Mon, 17 Jan 2022 20:23:24 GMT

Unfortunately, reversing AA with Amex is very difficult. Not impossible, but highly unlikely. Best bet is to lie low for a while and once everything is under control reach out.

Re: Amex drastically cut my limit - my fault

bigseegar — Tue, 18 Jan 2022 19:51:14 GMT

Exactly what Firemedic1 said to do.

AmEx does a SP on your credit every month (sometimes more than once) and monitors your entire credit picture closely. They saw those lates, then a closure by card issuer and that high 90% UTL card and an over 30% UTL as well and didn't like it. PLUS the fact you carry a balance on the AmEx (which they really don't like seeing to be honest, even if they are a revolver, they still much prefer PIF most months) and it was the Perfect Storm. Yes, they think you're in financial trouble or enroute to same. For sure PIF but I think I'd pay down some of the other card debt first because if they are still shy when you pay AmEx in full they may (also may not though) close the account if the othe balances are still high. Many years ago when my business failed even though I didn't owe a dime on any of my AmEx cards and PIF every single month, they still closed my accounts. Took me 19 years to get back in.

Re: Amex drastically cut my limit - my fault

Anonymous — Tue, 18 Jan 2022 21:32:27 GMT

@disdreamin wrote:
Not so much advice as a question - does AmEx balance chase? I see people suggesting paying the card down under a certain percentage, but is there a chance AmEx will again lower the CL once that is done?

Yes, see recent/current thread

Be VERY Aware AMEX is Cutting Limits - myFICO® Forums - 6381492

Re: Amex drastically cut my limit - my fault

bradlin — Wed, 19 Jan 2022 00:20:20 GMT

@Brian_Earl_Spilner wrote:
Unfortunately, reversing AA with Amex is very difficult. Not impossible, but highly unlikely. Best bet is to lie low for a while and once everything is under control reach out.

It's really funny today they sent me an email inviting me to apply for an Amex gold card. Like salt on a wound. Haha.

They have been very patient with me. I've had that card at the limit for quite a while maybe 3 years ago. They saw me drop spending on it and paying off that spending while still being close to the limit. I then paid it in full and kept it at PIF until the marriage/divorce drama started. I suppose since it is a credit card instead of a charge card they were okay with it.

This time I was under 17% util which became over 85% when they dropped the limit.

Another crazy thing is after I came back from my overseas drama was all the 0% apr credit card offers in the mail I had. I have a stack of them. Of course I know not to apply in my current condition.

One other thing about my relationship with Amex. That card started pretty high. But they kept letting me CLI to a point i did not expect. The limit reached a point that I had no idea I could obtain. It seemed like even if I applied for another Amex they would want to take from that limit to give to the new card.

I anticipate getting my balances below 8% total in a week or 2. Would I then wait for that to get reflected in my reports and then contact Amex?

Also I feel weird asking considering I've been on credit forums for so long. What is AA?

Re: Amex drastically cut my limit - my fault

bradlin — Wed, 19 Jan 2022 00:23:59 GMT

@bigseegar wrote:
Exactly what Firemedic1 said to do.

AmEx does a SP on your credit every month (sometimes more than once) and monitors your entire credit picture closely. They saw those lates, then a closure by card issuer and that high 90% UTL card and an over 30% UTL as well and didn't like it. PLUS the fact you carry a balance on the AmEx (which they really don't like seeing to be honest, even if they are a revolver, they still much prefer PIF most months) and it was the Perfect Storm. Yes, they think you're in financial trouble or enroute to same. For sure PIF but I think I'd pay down some of the other card debt first because if they are still shy when you pay AmEx in full they may (also may not though) close the account if the othe balances are still high. Many years ago when my business failed even though I didn't owe a dime on any of my AmEx cards and PIF every single month, they still closed my accounts. Took me 19 years to get back in.

Yes they clearly watch the other accounts. As I have mentioned elsewhere they have tolerated some risky behavior from me before. But my payment history was spotless. Even as their card was close to the limit other cards also had a balance.

I suspect a part of what's going on is some kind of macroeconomic forecast they have. I really don't want to get into market talk but seriously how high and for how long can a bull market last?

Re: Amex drastically cut my limit - my fault

W261w261 — Wed, 19 Jan 2022 03:45:24 GMT

AA = Adverse Action

Re: Amex drastically cut my limit - my fault

bradlin — Wed, 19 Jan 2022 17:08:44 GMT

Thank you. We will see. I suspect in the worst case even if they deny restoring the line they will let me CLI it back up over time. As long as I get back to and keep it under 8% again.

It seems Barclays actually reopened my account. I was able to add it to Apple Pay. I want to test it further. I just contacted executive CS via email.

I appreciate everyone's advice and truly I was getting complacent with these credit cards and balances. It's best to just not utilize these very much if possible. Especially in these uncertain times.

Edit: Yes! confirmed! I made an Amazon purchase (Amazon doesn't charge immediately) and now I see the usage on the Barclays app. They did reopen it and clearly without checking my new credit score.

I really want to GW those SL lates. Do it myself or through a service? I suspect trying via a simple CS call might not hurt. They are private loans so legally they have the ability.

@W261w261 wrote:
AA = Adverse Action