topic Re: Frequency of CLI requests? Is it just me or is Amex extremely strict? in Credit Cards

Frequency of CLI requests? Is it just me or is Amex extremely strict?

Anonymous — Mon, 10 May 2010 19:01:15 GMT

I've had an Amex Blue for a little over 3 years, it has a paltry $1.3K credit line, yet I've never been late on any of my credit cards or prior auto loans, and i have fairly good credit. In January 2010 I had requested a CLI for my Amex Blue and at the time my utilization was 70% and they denied it, reporting that my interest rate was jacked up to 30% due to a mailed in check payment arriving 2 days late March of 09 (not reported, but justified a rate increase ). The customer service representative informed me that they would need 12 months of payments on time before they lowered the interest back down. Since all of my payments had been early since then, it would just be a matter of months before I could make a new CLI / Int rate adjustment request...

I was quite offended by the rate they jacked me up to (I was using auto bill pay to manage that smaller card) and promptly paid down that credit card to 1% utilization in a month and have been waiting for a year to pass so they can lower my interest rate and give me a credit line that is a bit more commensurate with my other creditors (BOFA, Wells, with $10K LOC, aged 5 years always on time). It's been over a year of early payments, so it's about time to request again I think...

They struck me as being overly strict with their lending and have me wondering how frequently I should be requesting CLI? I usually request one every 1-2 years and my creditors (3 CCs total) have always approved, with no hard inquiries. Amex is the only one that hasn't been too friendly with me.

Re: Frequency of CLI requests? Is it just me or is Amex extremely strict?

Anonymous — Mon, 10 May 2010 21:45:44 GMT

@Anonymous wrote:
In January 2010 I had requested a CLI for my Amex Blue and at the time my utilization was 70% and they denied it,

Hi Mifune,

Are you meaning Jan 2010 or Jan 2009?

70% utilization is pretty high and certainly had an impact on their decision. Was that utilization on the Amex card?

What is your utilization sitting at now?

Re: Frequency of CLI requests? Is it just me or is Amex extremely strict?

Anonymous — Mon, 10 May 2010 21:53:27 GMT

@Anonymous wrote:
@Anonymous wrote:
In January 2010 I had requested a CLI for my Amex Blue and at the time my utilization was 70% and they denied it,
Hi Mifune,

Are you meaning Jan 2010 or Jan 2009?

70% utilization is pretty high and certainly had an impact on their decision. Was that utilization on the Amex card?
What is your utilization sitting at now?

I had put in a CLI request with Amex Jan 2010, which was when they had informed me that there was a 2 day late payment around March-April of 09, and they would need a year of good payments before they return my APR back to normal.

I had 70% utilization on the Amex card at the time of the request, since the card had a credit line of only $1300 dollars (it was very easy for it that card alone to become overutilized.)

That Amex is now under 1% utilization as I have a balance of $45.00 on that $1300.00 credit line.

My total credit utilization (of all credit cards, totalling ~$20,000 available credit) is around 35%, and will be down to around 15% in a month as I pay it all down.

Since i've been 1 year plus with perfect pay history on that Amex + low/no utilization, I've been thinking it might be time to re-request that CLI.

Re: Frequency of CLI requests? Is it just me or is Amex extremely strict?

Anonymous — Tue, 11 May 2010 02:18:01 GMT

AMEX wants you to wait at least 6 months inbetween requests for a LOC increase. It will be auto denied if less than 6 months. AMEX also does a soft pull every month, so MAY NOT do a hard, but that can't be promised and the CCP on the phone can't say if they will or not.

As to the APR, go ahead and call at this point. You can even call each and every month. Although the standard is a 12 month waiting period, I've seen them lowered prior to that.

Just remember, if you get a survey, anything less than an EX 9 or 10 hurts the CCP, even if they are only the one delivering the message.

Re: Frequency of CLI requests? Is it just me or is Amex extremely strict?

Anonymous — Tue, 11 May 2010 02:33:13 GMT

Great, thank you the info! I'll go ahead and see if they can lower my APR in the meantime. Won't hurt me if I keep this card around for a few months with its low credit limit, but it'll definitely hurt if they feel they need to do a hard pull, particularly since i'm planning on buying an auto in 2 months (0 hard inquiries atm) and trying to maximize my credit profile by lowering utilization.

Re: Frequency of CLI requests? Is it just me or is Amex extremely strict?

score_building — Tue, 11 May 2010 14:18:06 GMT

@Anonymous wrote:
I've had an Amex Blue for a little over 3 years, it has a paltry $1.3K credit line, yet I've never been late on any of my credit cards or prior auto loans, and i have fairly good credit. In January 2010 I had requested a CLI for my Amex Blue and at the time my utilization was 70% and they denied it, reporting that my interest rate was jacked up to 30% due to a mailed in check payment arriving 2 days late March of 09 (not reported, but justified a rate increase ). The customer service representative informed me that they would need 12 months of payments on time before they lowered the interest back down. Since all of my payments had been early since then, it would just be a matter of months before I could make a new CLI / Int rate adjustment request...

I was quite offended by the rate they jacked me up to (I was using auto bill pay to manage that smaller card) and promptly paid down that credit card to 1% utilization in a month and have been waiting for a year to pass so they can lower my interest rate and give me a credit line that is a bit more commensurate with my other creditors (BOFA, Wells, with $10K LOC, aged 5 years always on time). It's been over a year of early payments, so it's about time to request again I think...

They struck me as being overly strict with their lending and have me wondering how frequently I should be requesting CLI? I usually request one every 1-2 years and my creditors (3 CCs total) have always approved, with no hard inquiries. Amex is the only one that hasn't been too friendly with me.

typically won't accept 2 card holder initiated limit increase requests within the same 6 mos period.

they'll get friendlier with lotsa usage and PIF but if you give them ammo, things head south.

Re: Frequency of CLI requests? Is it just me or is Amex extremely strict?

Anonymous — Tue, 11 May 2010 14:18:21 GMT

They are required to reeset your after six months on time payments

Re: Frequency of CLI requests? Is it just me or is Amex extremely strict?

Anonymous — Tue, 11 May 2010 16:18:04 GMT

Haha truly. Describing it as a card with PMS is giving them too much credit though, as it's that time of the month every single day with them it seems. I wonder if I can reactivate one of my older inactive accounts and replace them down the line.. I'm also disappointed with American Express' security on their customer login page-- they only allow very short and easy to compromise passwords, maximum of 8 characters!

Re: Frequency of CLI requests? Is it just me or is Amex extremely strict?

OptimalFICO — Tue, 11 May 2010 23:07:56 GMT

I have been extremely happy with AmEx and have experienced better customer service with them than any other company. They've always been outstanding with any issue I've ever had and also with disputes. They always seem to be on my side and have my back! But they do have strict policies/consequences for late payments etc. So it doesn't surprise me that they declined your CLI immediately following a late payment -- even if it was only two days late. (Especially in the misdst of what was happening with the economy and consumer debt, especially a year ago, they probably weren't taking any chances.) Best to make sure you pay earlier rather than even a day late if you can avoid it.

I would suggest that if you plan to pay down your other credit cards/utilization, wait for two months after you pay them down, when you know this will be reported on your credit reports, before requesting your AmEx CLI and you'll probably get a larger increase.

Also, if you are concerned about a hard inquiry, call and talk to a rep to request the CLI. Make sure they know you'd like to request a CLI based on account review and soft inquiry -- make it clear that you do not want to authorize a hard inquiry. If you don't trust that the rep understands what you're talking about, ask to speak to a supervisor. They cannot do a hard inquiry without your authorization.

Good luck!

Re: Frequency of CLI requests? Is it just me or is Amex extremely strict?

bakalao2k — Wed, 12 May 2010 06:05:58 GMT

@Anonymous wrote:
Haha truly. Describing it as a card with PMS is giving them too much credit though, as it's that time of the month every single day with them it seems. I wonder if I can reactivate one of my older inactive accounts and replace them down the line.. I'm also disappointed with American Express' security on their customer login page-- they only allow very short and easy to compromise passwords, maximum of 8 characters!

I'm not liking their login security policy either. I wish they would implement a sitekey like the one used on Bank of America's online banking site.

Re: Frequency of CLI requests? Is it just me or is Amex extremely strict?

Anonymous — Wed, 12 May 2010 23:06:31 GMT

I would say they are strict. I've had an Amex card since 2005. Perfect payment history and no balance. I have been given no CLI ever.

Re: Frequency of CLI requests? Is it just me or is Amex extremely strict?

Anonymous — Fri, 14 May 2010 21:16:37 GMT

Alright, so I called Amex up and got them to lower my purchase APR from a deadbeat penalty rate of 27% (this was all as a result of a 2 day late mail in payment 14 months ago!!) to a still scandalous 17% (fed rate + 12.7%). At least they lowered it, and the CSR couldnt understand why I had such a high rate either.

I also reqeusted a conservative CLI from $1700 to $3000 ($1300 increase). They couldnt give a solid answer on whether it would result in a hard of soft inquiry, and said I didnt want a hard inquiry. I asked her to put in the request and she asked a couple income and address verification questions and it was approved immediately. Finally.

I know they primarily use Exp and I use some Exp credit monitoring services... so far have seen no hard inquiries pop up. I'll have to check again tomorrow, but so far it looks good! I'm still not totally satisfied with them as a credit card provider, but I'm happy I could get turn that nasty card into something that I could have practical uses for.

@ time of call, payments all on time 12months, $48 balance on a $1700.00 line of credit (~3%)

Re: Frequency of CLI requests? Is it just me or is Amex extremely strict?

blacklotus — Fri, 14 May 2010 22:12:43 GMT

Are you still happy with this card?

Re: Frequency of CLI requests? Is it just me or is Amex extremely strict?

fused — Fri, 14 May 2010 22:17:46 GMT

@Anonymous wrote:

I know they primarily use Exp and I use some Exp credit monitoring services... so far have seen no hard inquiries pop up. I'll have to check again tomorrow, but so far it looks good!

Congrats on your CLI!!!!!!!!!!!!

A couple of things. First, if Amex or any CCC needs to hard you, they must get your permission before doing so. Next, if Amex harded you, it would be on your report(s) by now.

Re: Frequency of CLI requests? Is it just me or is Amex extremely strict?

Anonymous — Sat, 15 May 2010 00:37:20 GMT

@blacklotus wrote:
Are you still happy with this card?

I can't say I've ever been totally happy with it, as I've always felt that the amount of credit and the terms they provided didn't quite commensurate with both my ability to pay (as my credit history would indicate), and my proven ability via actual payment history with them (had the card 3 years, paying over minimum on time every time, with the exception of one barely late pymt being 2 days after).

They are the service provider and it's ultimately their call, but other credit card companies I do business with have been a lot friendlier.

It's probably a good card to have, just so I have one from each major card company (Amex, Visa, MC), and I hope it can perform better in the future so that I can be more in tune with the whole "don't leave home without it" thing. For now WFB Visa is my go to card for big purchases and emergencies. I had somewhat of a fortuitous experience with my WFB Visa where I had just doubled my LOC to $10k, and the next day, my cat got very sick and incurred a huge vet bill that I couldn't possibly pay in cash. I was fortunate to have a higher LOC available so that I had some credit to spare without becoming to overutilized.

Re: Frequency of CLI requests? Is it just me or is Amex extremely strict?

score_building — Sun, 16 May 2010 04:54:48 GMT

@Anonymous wrote:

@blacklotus wrote:
Are you still happy with this card?

I can't say I've ever been totally happy with it, as I've always felt that the amount of credit and the terms they provided didn't quite commensurate with both my ability to pay (as my credit history would indicate), and my proven ability via actual payment history with them (had the card 3 years, paying over minimum on time every time, with the exception of one barely late pymt being 2 days after).

They are the service provider and it's ultimately their call, but other credit card companies I do business with have been a lot friendlier.

It's probably a good card to have, just so I have one from each major card company (Amex, Visa, MC), and I hope it can perform better in the future so that I can be more in tune with the whole "don't leave home without it" thing. For now WFB Visa is my go to card for big purchases and emergencies. I had somewhat of a fortuitous experience with my WFB Visa where I had just doubled my LOC to $10k, and the next day, my cat got very sick and incurred a huge vet bill that I couldn't possibly pay in cash. I was fortunate to have a higher LOC available so that I had some credit to spare without becoming to overutilized.

Amex historically has a preference for PIF customers.

Re: Frequency of CLI requests? Is it just me or is Amex extremely strict?

OptimalFICO — Fri, 21 May 2010 16:50:20 GMT

@Anonymous wrote:
I would say they are strict. I've had an Amex card since 2005. Perfect payment history and no balance. I have been given no CLI ever.

Asteroid, not enough details, but with AMEX I have found they don't do CLIs automatically, you have to ask for them periodically... you may have tried this...

Re: Frequency of CLI requests? Is it just me or is Amex extremely strict?

fused — Fri, 21 May 2010 16:55:38 GMT

Amex likes card holders who charge, charge, charge...then, PIF, PIF, PIF. Or at the very least, charge a lot and make big payments. This will lead to CLIs when you ask for them.

Re: Frequency of CLI requests? Is it just me or is Amex extremely strict?

score_building — Fri, 21 May 2010 17:32:31 GMT

@fused wrote:
Amex likes card holders who charge, charge, charge...then, PIF, PIF, PIF. Or at the very least, charge a lot and make big payments. This will lead to Clips when you ask for them.

Agreed but I was surprised that I received a CLI on request recently because it was an acct that had been hit with AA and I had just recently PIF a balance that I had been paying down aggressively (while making only nominal charges) I'm sure not nearly fast enough for Amex, I think they're in a generous mood lately.