topic Re: AMEX CLD! in Credit Cards

AMEX CLD!

imhotepng — Fri, 27 May 2011 23:01:59 GMT

Sooo I made a some purchases on my blue cash card carrying a balance of $4000. I could have paid this off but the I decided to pay it over time as I had 0% APR until Feb 2011. I logged on to my account a few days later and I see my limit had been cut from $10000 to $4200 leaving me available credit of $148. SO I called their customer service and I was told the limit I was issued initially was an error and it was just corrected. Kind of bemused about it all.

Re: AMEX CLD!

aftermath — Fri, 27 May 2011 23:33:47 GMT

How long did you carry the balance for?

Amex tends to flip-out if you carry a balance for more than 3 months.

Never pay any attention to their special rates or promos.

Regardless what they say you are elgible for or what you are allowed to do, PIF your balance every month.

Basically what they told you was their nice way of saying "We think you don't have money to pay off your balance and we're not taking a chance on letting you run it up any higher."

I wouldn't be surprised if your CL decreases even further as you pay off your balance.

Re: AMEX CLD!

imhotepng — Fri, 27 May 2011 23:43:26 GMT

I have carried the balance for just one month.

It was just amusing that they did it this way but then they have their way of making decisions.

I will test your theory about them possibly reducing it further by making a payment next week. If a reduction does happen then I will go ahead and pay their remaining balance.

Re: AMEX CLD!

DI — Fri, 27 May 2011 23:43:57 GMT

@imhotepng wrote:
Sooo I made a some purchases on my blue cash card carrying a balance of $4000. I could have paid this off but the I decided to pay it over time as I had 0% APR until Feb 2011. I logged on to my account a few days later and I see my limit had been cut from $10000 to $4200 leaving me available credit of $148. SO I called their customer service and I was told the limit I was issued initially was an error and it was just corrected. Kind of bemused about it all.

I think carrying that balance caused your internal credit score with them to drop overtime. Therefore, they CLD your account.

Re: AMEX CLD!

Anonymous — Sat, 28 May 2011 01:21:41 GMT

I am sorry to hear that. I actually had the exact opposite experience with them today as I logged in to pay my bill I noticed my limit had been increased from 10.4k to 20k. They have been very generous with me, hopefully they will restore you once you pay your balance down.

Re: AMEX CLD!

sandman2435 — Sat, 28 May 2011 01:42:53 GMT

Amex does not like you to have your balance too close to your credit limit..yes they love that you use their cards and pay as much as you can..I never leave a balance on any of the cards that I have with them

Re: AMEX CLD!

smallfry — Sat, 28 May 2011 02:54:06 GMT

One of my relatives had their line cut from 5-2K. Blue Cash. No balance on card just cut and when he called was told the initial line was an error and they meant to only match his lowest credit limit. Into the sockdrawer. Available Fico scores are 777 and 778. 6 years of credit history and was approved for 25K with NFCU.

Re: AMEX CLD!

android01 — Sat, 28 May 2011 04:48:45 GMT

I've read of a few occasions of Amex CLD with some folks but I have a hard time believing that there's not something else going on other than carrying a balance. 14 out of the 19 personal cards Amex offers are revolving credit cards. They make billions in interest from people who carry balances. They offer incentives like balance transfers and 0% interest rates. They seem to do everything that everyone else does to get you to carry a balance!

There HAS to be something other than carrying a balance that sets their little red lights flashing....

Re: AMEX CLD!

scottwagnon — Sat, 28 May 2011 05:21:17 GMT

. SO I called their customer service and I was told the limit I was issued initially was an error and it was just corrected. Kind of bemused about it all.

um. it seem that this part of the post was overlooked. the OP clearly indicated that his limit was lowered in error, and that they immediately restored it back to where it was.

i don't necessarily agree that amex is really big on pif any more than most credit card companies. perhaps they have a preference or paticular slant on PIF'ing, but i am not sure.

Re: AMEX CLD!

CHARGE_IT — Sat, 28 May 2011 09:01:07 GMT

Your name would imply to me that English might be your first language, but I have to point out to you that you completely turned around what the OP stated. Quoting him; "they stated they had made a mistake in issuing his original limit and were simply correcting the error by lowering it.

This could imply too that carrying his balance was not really the problem; it just brought attention to the fact that his limit was incorrect.

At any rate , I have had too many years experience with the company to take seriously anyone who claims you can't use Amex as they urge you too. I do outrageous things with Amex and even make a mistake occasionally. They have been so consistantly dependable that I am almost awed by them.

Re: AMEX CLD!

score_building — Sat, 28 May 2011 09:32:22 GMT

@CHARGE_IT wrote:
Your name would imply to me that English might be your first language, but I have to point out to you that you completely turned around what the OP stated. Quoting him; "they stated they had made a mistake in issuing his original limit and were simply correcting the error by lowering it.

This could imply too that carrying his balance was not really the problem; it just brought attention to the fact that his limit was incorrect.

At any rate , I have had too many years experience with the company to take seriously anyone who claims you can't use Amex as they urge you too. I do outrageous things with Amex and even make a mistake occasionally. They have been so consistantly dependable that I am almost awed by them.

CI

Just have to smile when a card holder seems to overvalue their subjective experience with a card issuer as gospel: YMMV

Re: AMEX CLD!

Anonymous — Sat, 28 May 2011 15:54:30 GMT

@score_building wrote:
@CHARGE_IT wrote:
Your name would imply to me that English might be your first language, but I have to point out to you that you completely turned around what the OP stated. Quoting him; "they stated they had made a mistake in issuing his original limit and were simply correcting the error by lowering it.

This could imply too that carrying his balance was not really the problem; it just brought attention to the fact that his limit was incorrect.

At any rate , I have had too many years experience with the company to take seriously anyone who claims you can't use Amex as they urge you too. I do outrageous things with Amex and even make a mistake occasionally. They have been so consistantly dependable that I am almost awed by them.

CI
Just have to smile when a card holder seems to overvalue their subjective experience with a card issuer as gospel: YMMV

There are a lot of people that do all sorts of *bad* stuff with their Amex, and see no repurcussions, myself included. Stuff like...shopping at walmart, making medical payments, carrying small balances, buying liquor from the casino bar at 3am, etc....

I've read a lot of Amex FR and AA stories, and most seem to have a common theme. That theme is usually that the storyteller isn't giving you the full story. Sometimes it is intentional, sometimes it is ignorance about what Amex and other CC's are looking at. They just see a letter that says "risky purchases", and suddenly believe anyone who uses Amex at Walmart is going to get FR'd. What they fail to mention or recognize is that maxing out the card, carrying large balances, only making minimum payments, paying off large portions of balances and then immediately charging it back...all these things are the real reasons.

But you're never going to get a letter from Amex that says...

Please don't actually use the entire credit line we said you could

Please don't revolve a balance on our revolving credit cards

Please pay your balance in full...the minimum payment is just something we're required to put on there

Please don't stop using your card for six months, and then suddenly max it out with medical bills

And on, and on... People do strange stuff. They do it because they don't recognize it as being strange. You have to dig a little deeper in most cases to get the real reasons why people get AA from their lenders.

Re: AMEX CLD!

imhotepng — Sat, 28 May 2011 18:42:50 GMT

To complete the story.... My purchase was plane tickets from BA

I've read a lot of Amex FR and AA stories, and most seem to have a common theme. That theme is usually that the storyteller isn't giving you the full story. Sometimes it is intentional, sometimes it is ignorance about what Amex and other CC's are looking at. They just see a letter that says "risky purchases", and suddenly believe anyone who uses Amex at Walmart is going to get FR'd. What they fail to mention or recognize is that maxing out the card, carrying large balances, only making minimum payments, paying off large portions of balances and then immediately charging it back...all these things are the real reasons.

But you're never going to get a letter from Amex that says...

Please don't actually use the entire credit line we said you could

Please don't revolve a balance on our revolving credit cards

Please pay your balance in full...the minimum payment is just something we're required to put on there

Please don't stop using your card for six months, and then suddenly max it out with medical bills

Re: AMEX CLD!

score_building — Sun, 29 May 2011 02:27:15 GMT

@imhotepng wrote:
To complete the story.... My purchase was plane tickets from BA

And on, and on... People do strange stuff. They do it because they don't recognize it as being strange. You have to dig a little deeper in most cases to get the real reasons why people get AA from their lenders.
There are a lot of people that do all sorts of *bad* stuff with their Amex, and see no repurcussions, myself included. Stuff like...shopping at walmart, making medical payments, carrying small balances, buying liquor from the casino bar at 3am, etc....

I've read a lot of Amex FR and AA stories, and most seem to have a common theme. That theme is usually that the storyteller isn't giving you the full story. Sometimes it is intentional, sometimes it is ignorance about what Amex and other CC's are looking at. They just see a letter that says "risky purchases", and suddenly believe anyone who uses Amex at Walmart is going to get FR'd. What they fail to mention or recognize is that maxing out the card, carrying large balances, only making minimum payments, paying off large portions of balances and then immediately charging it back...all these things are the real reasons.

But you're never going to get a letter from Amex that says...

Please don't actually use the entire credit line we said you could
Please don't revolve a balance on our revolving credit cards
Please pay your balance in full...the minimum payment is just something we're required to put on there
Please don't stop using your card for six months, and then suddenly max it out with medical bills

No new ground being covered here really but the fact remains what may work out fine for one card holder can lead to AA for another, whatever the whole story may be.

Re: AMEX CLD!

Anonymous — Sun, 29 May 2011 03:44:21 GMT

AMEX IS STRANGE THEY DON'T WANT WE SHOULD USE THEIR CC

Re: AMEX CLD!

CHARGE_IT — Sun, 29 May 2011 03:59:54 GMT

@score_building wrote:
@CHARGE_IT wrote:
Your name would imply to me that English might be your first language, but I have to point out to you that you completely turned around what the OP stated. Quoting him; "they stated they had made a mistake in issuing his original limit and were simply correcting the error by lowering it.

This could imply too that carrying his balance was not really the problem; it just brought attention to the fact that his limit was incorrect.

At any rate , I have had too many years experience with the company to take seriously anyone who claims you can't use Amex as they urge you too. I do outrageous things with Amex and even make a mistake occasionally. They have been so consistantly dependable that I am almost awed by them.

CI
Just have to smile when a card holder seems to overvalue their subjective experience with a card issuer as gospel: YMMV

Could be...............but thirty years is half a life time for some folks, and that's the gospel.. (It only took them twenty to convince me) Btw; I was referring to Amex, I don' t make statements like that concerning other banks, because I have never found a reason to overvalue my confidence in them. (maybe one or two) Ahhhhh, but age does sharpen perspective. Thanks for the smile.

Re: AMEX CLD!

score_building — Sun, 29 May 2011 04:13:09 GMT

@CHARGE_IT wrote:
@score_building wrote:
@CHARGE_IT wrote:
Your name would imply to me that English might be your first language, but I have to point out to you that you completely turned around what the OP stated. Quoting him; "they stated they had made a mistake in issuing his original limit and were simply correcting the error by lowering it.

This could imply too that carrying his balance was not really the problem; it just brought attention to the fact that his limit was incorrect.

At any rate , I have had too many years experience with the company to take seriously anyone who claims you can't use Amex as they urge you too. I do outrageous things with Amex and even make a mistake occasionally. They have been so consistantly dependable that I am almost awed by them.

CI
Just have to smile when a card holder seems to overvalue their subjective experience with a card issuer as gospel: YMMV
Could be...............but thirty years is half a life time for some folks, and that's the gospel.. (It only took them twenty to convince me) Btw; I was referring to Amex, I don' t make statements like that concerning other banks, because I have never found a reason to overvalue my confidence in them. (maybe one or two) Ahhhhh, but age does sharpen perspective. Thanks for the smile.

CI

Not infrequently the sharpest perspectives are set forth by those who realize how much more they have to learn... wish I made these things up

Re: AMEX CLD!

Anonymous — Sun, 29 May 2011 13:23:40 GMT

Since this thread has already been hijacked--sort of--let me take it a bit further down the road. I've had credit cards since the 1970's and for some reason I've never had these sorts of horror stories and my credit score has been all over the map. "Yes!" I've had high interest rates after a late payment and I've had over-the-limit-penalties too, but this is a matter of contract. I knew the possible consequences in advance. All the lender did is what they promised they might do. The fact that I might think I deserve a $15k credit line two years after bankruptcy or after a charge off or with a credit score of 605 or four months after opening an account with a CCC does not make a lender unreasonable or impossible if they disagree with me and deny me that credit line or even an account in the first place. I'm sure there are some problems with any company (especially in this economic climate) but I suspect that for every one who feels abused by WF or Citi or Amex there are tens of thousands of happy customers who are getting just what they expected (if not more.) Bottom line is---if you dislike FP or Orchard or Cap1 or BOA, or Amex, then don't do business with them. And if you've had bad experiences with two or three companies, maybe the solution to the problem lies elsewhere. Just my (respectful) opinion.

Re: AMEX CLD!

Open123 — Sun, 29 May 2011 14:36:38 GMT

In my view, sometimes--for whatever reason--a firm or company just doesn't want a certain client. In those cases, given the PC litigious society in which we live, every firm needs to give a legal objective reason and transparent process in which it sheds customers.

I think Amex just uses the FR as a ways and means to ensure clients with escalating charges can pay, and to surgically remove some cardholders who don't or no longer fit their risk and usage tolerance levels.

Re: AMEX CLD!

Anonymous — Sun, 29 May 2011 14:59:29 GMT

+ 1. Banks like nation states operate according to what is in their own interest. Ultimately everyone benefits from healthy banks. The affluent in society sometimes benefit more than most of us unfortunately.