topic Re: why a low limited from Amex? in Credit Cards

why a low limited from Amex?

onthemove — Mon, 08 Jul 2013 17:06:13 GMT

Anyone ran into this issue before and what was your out come?

I have a CR of 779 with no badies.

$16,000 in student loans

BofA CC of $25,000 for 6 years ($5,000 on the card)

Amex Glod with rewards since 1990 ($2,200 on the card)

BCE with $22,000 since three weeks ago ($4,000 on the card)

Income: $104k

Last week applied for AMEX SPG card and they gave me a limit of $10,000...why?

Can I do a reconsideration with Amex? If so, is there a good number to call? AmEx Executive Office: 800-297-6197 or AmEx: 800-567-1083 (App Status - Use with caution if attempting a denied app recon; have been advised by one member that they can only resubmit app with another hard pull)

Re: why a low limited from Amex?

Creditaddict — Mon, 08 Jul 2013 17:11:04 GMT

@onthemove wrote:
Anyone ran into this issue before and what was your out come?

I have a CR of 779 with no badies.

$16,000 in student loans
BofA CC of $25,000 for 6 years ($5,000 on the card)
Amex Glod with rewards since 1990 ($2,200 on the card)
BCE with $22,000 since three weeks ago ($4,000 on the card)

Income: $104k

Last week applied for AMEX SPG card and they gave me a limit of $10,000...why?

Can I do a reconsideration with Amex? If so, is there a good number to call? AmEx Executive Office: 800-297-6197 or AmEx: 800-567-1083 (App Status - Use with caution if attempting a denied app recon; have been advised by one member that they can only resubmit app with another hard pull)

to be fair if this is your whole credit profile you only have 1 other credit card besides amex, and you just got $22k less than a month ago so $10k plus who knows your internal Gold you probably actually have exposure with Amex at 4-5x your BofA easily! Give it 61 days and request that it be raised to $30k or really push it and ask that your blue be raised to $66k.

Re: why a low limited from Amex?

Anonymous — Mon, 08 Jul 2013 17:12:30 GMT

It might have to do with the dollar amount of debt you owe on the cards (10% of your salary), on top of other loans that you already have.

It also might have to do with the CL both Amex and other lenders have already given you in total. You might have reached the max threshold they are willing to expose to you for now.

Best way is to just wait 61 days for CLI. If you try to recon it now they probably will ask for tax docs.

Re: why a low limited from Amex?

darkfrosty — Mon, 08 Jul 2013 17:14:10 GMT

just wait 61 days then ask for a 3x cli. I would just be careful with asking over 30k due to a possible FR.

Re: why a low limited from Amex?

onthemove — Mon, 08 Jul 2013 17:37:44 GMT

when you do hit the 61 day mark, does it ask you what you want or just apply for an increase?

Re: why a low limited from Amex?

Anonymous — Mon, 08 Jul 2013 17:39:34 GMT

You just apply for an increase. They will either approve you, or come up with a counter-offer, or decline you entirely. Sometimes they will ask for tax docs as well.

Re: why a low limited from Amex?

takeshi74 — Mon, 08 Jul 2013 18:39:27 GMT

Don't overlook the 3x CLI thread.

Re: why a low limited from Amex?

Anonymous — Mon, 08 Jul 2013 18:50:06 GMT

And if $25K is your highest card, $10K isn't THAT low. Barclays gave me a CL about 1/7th of my highest card. If Amex is concerned about exposure (either with them, or overall) you will find out when you try a 3x CLI.

Re: why a low limited from Amex?

onthemove — Tue, 09 Jul 2013 00:09:12 GMT

Thanks for the responses. I am quite aware of the "Amex 3x CIL", but I was trying to figure out with a high credit score and other good trade lines, why I ended up with only a $10,000 CL. I think I got part of my answer when I got home today. There was letter from Amex telling me that I have the "Pay-Over-Time feature and the out standing balance may not exceed $35,000, unless we notify you of a different amount", on my Amex Reward Gold Card plus, $10,000 a month for approval per month. I guess Amex internal process see things different from what we can see from the outside. Again thanks!

Re: why a low limited from Amex?

score_building — Tue, 09 Jul 2013 00:49:02 GMT

If OP lists all accounts 100% are carrying balances AND 2 of those are Amex cards, to put it mildly-they are not a fan of that...to get another 10k card from them while carrying debt across accounts totaling >25k actually seems generous starting CL.

Re: why a low limited from Amex?

MrCredit — Tue, 09 Jul 2013 02:10:54 GMT

I got a $1k limit from SPG Amex recently so dont feel bad. I couldnt believe it.

Re: why a low limited from Amex?

Anonymous — Tue, 09 Jul 2013 02:12:21 GMT

@MrCredit

Re: why a low limited from Amex?

Walt_K — Tue, 09 Jul 2013 02:57:45 GMT

@onthemove wrote:
Thanks for the responses. I am quite aware of the "Amex 3x CIL", but I was trying to figure out with a high credit score and other good trade lines, why I ended up with only a $10,000 CL. I think I got part of my answer when I got home today. There was letter from Amex telling me that I have the "Pay-Over-Time feature and the out standing balance may not exceed $35,000, unless we notify you of a different amount", on my Amex Reward Gold Card plus, $10,000 a month for approval per month. I guess Amex internal process see things different from what we can see from the outside. Again thanks!

This is just the standard terms of Pay Over Time. It doesn't necessarily mean that Amex is going to let you revolve $35K on your charge card.

As others have said, Amex has extended you over $30K of unsecured credit very recently. $10K is a healthy new limit. In that context, I don't see it as them extending you "only" $10K.

I have an SPG card with a $27K limit. When I applied for the Hhonors card, the initial CL was $13,700. And that was nearly two years after applying for the SPG card. I don't see anything surprising by the CL they gave you. Of course, that isn't to say that you probably can't get a CLI. But it's not surprising that they started you out a little lower on the second card especially given the time between the last app.

Re: why a low limited from Amex?

CreditScholar — Wed, 10 Jul 2013 02:19:28 GMT

@Walt_K wrote:
@onthemove wrote:
Thanks for the responses. I am quite aware of the "Amex 3x CIL", but I was trying to figure out with a high credit score and other good trade lines, why I ended up with only a $10,000 CL. I think I got part of my answer when I got home today. There was letter from Amex telling me that I have the "Pay-Over-Time feature and the out standing balance may not exceed $35,000, unless we notify you of a different amount", on my Amex Reward Gold Card plus, $10,000 a month for approval per month. I guess Amex internal process see things different from what we can see from the outside. Again thanks!
This is just the standard terms of Pay Over Time. It doesn't necessarily mean that Amex is going to let you revolve $35K on your charge card.

As others have said, Amex has extended you over $30K of unsecured credit very recently. $10K is a healthy new limit. In that context, I don't see it as them extending you "only" $10K.

I have an SPG card with a $27K limit. When I applied for the Hhonors card, the initial CL was $13,700. And that was nearly two years after applying for the SPG card. I don't see anything surprising by the CL they gave you. Of course, that isn't to say that you probably can't get a CLI. But it's not surprising that they started you out a little lower on the second card especially given the time between the last app.