topic Re: AMEX set 3k limit on green after FR in Credit Cards

AMEX set 3k limit on green after FR

gr33nsuit — Wed, 01 Aug 2012 19:33:23 GMT

So few weeks ago, AMEX decided to FR me. This is their decisions after, anyone have any experience with this? and anyway i can lift the limit? I have a 5k limit on chase freedom right now. And I pay my bills in full for all my cards monthly. Thanks for any answers/advices.

We have placed a spending limit of $3,000.00 on your account. Please be aware that once the outstanding balance on your account reaches this level, we will not approve any charges above this amount. The limit is for total spending on all Cards on this account so if you have any additional Cardmembers, please ensure they know about this change. You will also receive this information by letter.

Important legal notice:

We are changing the terms of your Cardmember Agreement and imposing a Spending Limit on your Account. Effective immediately, we have limited the amount you may spend on your Account to the amount noted above in this letter. Accordingly, the paragraph of the Using the Card section of that Agreement that begins with "We decide whether to approve a charge" changed to the following. This change will remain in effect until we notify you that it is no longer in effect.

Re: AMEX set 3k limit on green after FR

Anonymous — Wed, 01 Aug 2012 22:16:30 GMT

What promped the FR?

Re: AMEX set 3k limit on green after FR

Creditaddict — Wed, 01 Aug 2012 23:58:12 GMT

@gr33nsuit wrote:
So few weeks ago, AMEX decided to FR me. This is their decisions after, anyone have any experience with this? and anyway i can lift the limit? I have a 5k limit on chase freedom right now. And I pay my bills in full for all my cards monthly. Thanks for any answers/advices.

We have placed a spending limit of $3,000.00 on your account. Please be aware that once the outstanding balance on your account reaches this level, we will not approve any charges above this amount. The limit is for total spending on all Cards on this account so if you have any additional Cardmembers, please ensure they know about this change. You will also receive this information by letter.

Important legal notice:
We are changing the terms of your Cardmember Agreement and imposing a Spending Limit on your Account. Effective immediately, we have limited the amount you may spend on your Account to the amount noted above in this letter. Accordingly, the paragraph of the Using the Card section of that Agreement that begins with "We decide whether to approve a charge" changed to the following. This change will remain in effect until we notify you that it is no longer in effect.

You will be reviewed in 1 year and it could stay $3k or it could go up, or it could go away back to NPSL.

and I have managed an account that DID get $1k increase at year... which I know everyone wants to know about going back to NPSL... I think the more you use the card and show some high usage, pay many times... they will work with you more than if you just sock it and go with Chase...

unlike some banks that flip if you put $2k on a $300 limit... Amex is oppisite... You pay lots, they give lots!

Re: AMEX set 3k limit on green after FR

Dishpro — Thu, 02 Aug 2012 03:21:30 GMT

What caused the FR? How long have you had card?

Re: AMEX set 3k limit on green after FR

gr33nsuit — Thu, 02 Aug 2012 04:06:23 GMT

I honestly got no idea why it was prompt, I just know one day one lady called me and told me they suspended my account and need my IRS release authorizations. I had the card since June 2012.

Re: AMEX set 3k limit on green after FR

gr33nsuit — Fri, 03 Aug 2012 20:59:20 GMT

They still put me on suspension... like half of month already.

Re: AMEX set 3k limit on green after FR

HenryJumbo — Fri, 03 Aug 2012 22:37:02 GMT

Not to sound antagonizing but why would Amex FR a user out of the blue? Are you omitting something out of the story? I doubt Amex would out of the blue say “hey let’s pick a random member who has an excellent record and FR them”. In order for Amex to use their resources I think they would first have a reason. Are you getting divorced, had previous COs, late payments, etc?

I read this a lot on the boards: 'CardXYZ lowered my limit, closed my account, etc' but I been PIF every month for the past 7 months. And then after asking them a bunch of questions, yea I missed a payment but still I been 7 months.

There's a reason why some get on the Mod Cut of some companies.

Memeber you're a victim of identity theft.

In any case I would demand WHY before releasing any IRS information. Mod Cut

Re: AMEX set 3k limit on green after FR

Creditaddict — Fri, 03 Aug 2012 22:23:49 GMT

@HenryJumbo wrote:
Not to sound antagonizing but why would Amex FR a user out of the blue? Are you omitting something out of the story? I doubt Amex would out of the blue say “hey let’s pick a random member who has an excellent record and FR them”. In order for Amex to use their resources I think they would first have a reason. Are you getting divorced, had previous COs, late payments, etc?

I read this a lot on the boards: 'CardXYZ lowered my limit, closed my account, etc' but I been PIF every month for the past 7 months. And then after asking them a bunch of questions, yea I missed a payment but still I been 7 months.

There's a reason why some get on the s'list of some companies.

Memeber you're a victim of identity theft.

In any case I would demand WHY before releasing any IRS information. Not even Mitt Romney is so willing to release IRS information so easy.

Talking about other bank CLD or Closing accounts or what not is VERY different from Amex and FR. I have not really been very positive towards the FR threads in the past because they then cause these 50 other posts about "I'm Scared to use my card" "Where can my first purchase be" "I used my car 5 times today, I hope I don't get FR"

I think and hope that the one thing we can agree on is this is "Random" by Amex computers... I don't believe ANY purchase, Location, Bar, Walmart, Country travel, etc. will be the cause... I say this now 5-7 years into coming to MyFico and what accounts have been FR... Now the exception to the rule is if you got FR last year and close accounts instead of giving them the info, then come back this year and start applying and opening, they will come back and ask for FR again (Concorduser is good example... but have not seen him post in long time)

I believe even more it's random because look at something like the charge card... I have seen people that were capable of charging over $100k only to find a payment returned or a payment made 10 days after due date which Amex will tell you "You can do" as part of grace period and I do believe some can but when you are up in that kind of spending, it matters that you couldn't pay on time... I have seen a card like that then get hard limit at about $10k... Now if Amex wants to take you from $100k to $10k in 30 seconds, how and why would that account not be a better option to FR vs. an account that was just opened or an account that someone spent $500 for 2 months, then spent $5k but paid before due date...

Re: AMEX set 3k limit on green after FR

lithium78 — Fri, 03 Aug 2012 23:49:05 GMT

This kind of stuff is why I shred all the applications AMEX sends me. They are way too tough on cardholders.

Re: AMEX set 3k limit on green after FR

LS2982 — Fri, 03 Aug 2012 23:52:13 GMT

@lithium78 wrote:
This kind of stuff is why I shred all the applications AMEX sends me. They are way too tough on cardholders.

Not really.....

As long as you don't go overboard spending and create a respectable spending pattern in comparison to your AI you report on your application they pretty much leave you alone.

Re: AMEX set 3k limit on green after FR

Repo-ed — Fri, 03 Aug 2012 23:55:55 GMT

3 sides to every story...

Re: AMEX set 3k limit on green after FR

Dishpro — Sat, 04 Aug 2012 02:45:17 GMT

I just received my new AMEX green 2 weeks ago. When I read this thread I wondered why I ever app'd this card. A waste of a HP? I started worrying about how I was using it. The last thing I want is IRS forms. I was even looking for a replacement card today for my new AMEX. I am rebuilding and that's why I app'd for it in the first place. My plan was to use it as a cash flow tool (5k) per month and make one payment on the day I receive my statement. Now I'm not so sure. Any advice on how to keep AMEX for many happy years to come? My credit scores are going to fluctuate as I build adding new acct's. Please I respect your advice?

Re: AMEX set 3k limit on green after FR

Revelate — Sat, 04 Aug 2012 02:59:38 GMT

@Dishpro wrote:
I just received my new AMEX green 2 weeks ago. When I read this thread I wondered why I ever app'd this card. A waste of a HP? I started worrying about how I was using it. The last thing I want is IRS forms. I was even looking for a replacement card today for my new AMEX. I am rebuilding and that's why I app'd for it in the first place. My plan was to use it as a cash flow tool (5k) per month and make one payment on the day I receive my statement. Now I'm not so sure. Any advice on how to keep AMEX for many happy years to come? My credit scores are going to fluctuate as I build adding new acct's. Please I respect your advice?

Don't outspend your reported monthly income adjusted for usual DTI calculations.

Pretty much all the recent FR's I've seen posted, were where the applicatant mis-reported their income on the Amex application, and then proceeded to spend well beyond what's reasonable for their claimed income (take your 5K / month spend on a reported income of 35K/yr... Lucy, you got some splainin' to do!)

The general trip up's on this are 1) using the card for business expenses, or 2) well, a few folks who probably need to get righteous with their tax filings before a close encounter of the worst kind (IRS audit).

The second one is a no-fly zone as far as I'm concerned; however, the first one has a simple resolution: apply for a business card instead which Amex will probably be more than happy to provide assuming qualifications are met.

In any event, for the responsible consumer, the benefits to having a relationship with Amex far outweigh the "issues" reported here; the fact is there are millions of consumers who lead normal FICO lives, whereas pretty much everyone on here does not... and as such, our incidence rate for AA of any type (FR's from Amex in this case) are much higher than typical as well.

It's really nothing to be concerned about if you're on the up and up on your personal expenses and reported income.

Re: AMEX set 3k limit on green after FR

HenryJumbo — Sat, 04 Aug 2012 03:29:50 GMT

@Creditaddict wrote:
@HenryJumbo wrote:
Not to sound antagonizing but why would Amex FR a user out of the blue? Are you omitting something out of the story? I doubt Amex would out of the blue say “hey let’s pick a random member who has an excellent record and FR them”. In order for Amex to use their resources I think they would first have a reason. Are you getting divorced, had previous COs, late payments, etc?

I read this a lot on the boards: 'CardXYZ lowered my limit, closed my account, etc' but I been PIF every month for the past 7 months. And then after asking them a bunch of questions, yea I missed a payment but still I been 7 months.

There's a reason why some get on the s'list of some companies.

Memeber you're a victim of identity theft.

In any case I would demand WHY before releasing any IRS information. Not even Mitt Romney is so willing to release IRS information so easy.
Talking about other bank CLD or Closing accounts or what not is VERY different from Amex and FR. I have not really been very positive towards the FR threads in the past because they then cause these 50 other posts about "I'm Scared to use my card" "Where can my first purchase be" "I used my car 5 times today, I hope I don't get FR"

I think and hope that the one thing we can agree on is this is "Random" by Amex computers... I don't believe ANY purchase, Location, Bar, Walmart, Country travel, etc. will be the cause... I say this now 5-7 years into coming to MyFico and what accounts have been FR... Now the exception to the rule is if you got FR last year and close accounts instead of giving them the info, then come back this year and start applying and opening, they will come back and ask for FR again (Concorduser is good example... but have not seen him post in long time)

I believe even more it's random because look at something like the charge card... I have seen people that were capable of charging over $100k only to find a payment returned or a payment made 10 days after due date which Amex will tell you "You can do" as part of grace period and I do believe some can but when you are up in that kind of spending, it matters that you couldn't pay on time... I have seen a card like that then get hard limit at about $10k... Now if Amex wants to take you from $100k to $10k in 30 seconds, how and why would that account not be a better option to FR vs. an account that was just opened or an account that someone spent $500 for 2 months, then spent $5k but paid before due date...

I doubt it's random. I just looked at gr33nsuit first post and she/he stated that "I'm still a student attending college, since most of my pay is commission: they're in cash. And I applied as a regular account.". Also "my monthly transactions usually range from 2-3 thousands".

She/he applied for a regular card, is technically a student. It's important to put that you are a student in the application because it's a major expense that goes with the profile. Also most of gr33nsuit's pay is in cash so you have to be VERY discipline when reporting your income.

To reiterate it makes no sense for Amex to randomly pick out excellent customers for FR. Usually something trips the alarm.

Re: AMEX set 3k limit on green after FR

FicoTron — Sat, 04 Aug 2012 03:40:24 GMT

I use my gold card for ALL purchases and run about $1500 a month through it. I've had it for 4 months. I have hit tHe "check spending ability" a few times each month to see what happens...it went like this, first month $500 max, second $1000, third $2500, fourth $5000 max. If I spent $5000 in a month it would look a bit fishy with my income, yet they would approve it. I guess the moral is, don't lie to them, that way you can back up a FR with no prob. And anyone worried about them being a hassle to have is crazy...way too much upside to being a member.

Re: AMEX set 3k limit on green after FR

Dishpro — Sat, 04 Aug 2012 03:54:15 GMT

About the check spending ability, on the site you have to enter a specific amount to check for credit availablity. How do you checkbyour spending limit? I thought that wasnt preset.

Re: AMEX set 3k limit on green after FR

gr33nsuit — Sun, 05 Aug 2012 09:00:52 GMT

Well maybe i was a little reckless with my card. Spent like 1.9k in the first month, I paid the bill twice though. Well guess imma be underwatchful eyes now. They do kinda take forever to process though.

Re: AMEX set 3k limit on green after FR

Repo-ed — Sun, 05 Aug 2012 13:33:59 GMT

@Dishpro wrote:
About the check spending ability, on the site you have to enter a specific amount to check for credit availablity. How do you checkbyour spending limit? I thought that wasnt preset.

Even those these charge cards are NPSL, there is a limit to which you can spend in a month. That's what the button is there for. To see just how high you can go.