Hi,
I have a Delta Skymiles with $2K limit and Blue Everyday with a $1K limit that I got back in December of 2018. I have paid both cards on time but never the full balance each month just a bit above minimum payment. I paid off all my credit cards including Amex one week ago today bringing my utilization down to under 3% and my Experian score jumped to 705.
When I asked for a CLI I got denied for both cards. According to the AMEX letters they state my balances/obligations on all my credit cards are too high and they stated my score was indeed 705. I called to let them know all my cards are paid off and have no balances including with them. The rep finally told me that due to their internal scoring model they denied the CLI because I've been making just above minimum payment which doesn't put me in a positive light with their scoring model. He advised me that I pay minimum 70% of the enitire balance due each month to score higher.
Is what the rep telling me hold any weight? Can someone enlighten me on how to maximise my chances with AMEX CLI?
Thank you in advance.
Payment history is one of the most important of the many factors American Express uses in lending decisions, and their reasons for denial are usually very transparent.
If you have been making only slightly above minimum payments, that is looked upon unfavorably. Now that you have paid them off, I would use them and pay the statement balance in full each month. Then you would be eligible to ask again on one card 91 days after your denial.
You mentioned asking on both cards; receiving a denial for a CLI on any card requires a minimum of 90 days before your next eligible time to ask on all cards and receiving an approved CLI on an any card requires a minimum of 180 days before your next eligible time to ask on all cards (hence the 91 and 181 days usually referred to); asking again on any card before those dates have passed will always result in an automatic denial.
@K-in-Boston wrote:Payment history is one of the most important of the many factors American Express uses in lending decisions, and their reasons for denial are usually very transparent.
If you have been making only slightly above minimum payments, that is looked upon unfavorably. Now that you have paid them off, I would use them and pay the statement balance in full each month. Then you would be eligible to ask again on one card 91 days after your denial.
You mentioned asking on both cards; receiving a denial for a CLI on any card requires a minimum of 90 days before your next eligible time to ask on all cards and receiving an approved CLI on an any card requires a minimum of 180 days before your next eligible time to ask on all cards (hence the 91 and 181 days usually referred to); asking again on any card before those dates have passed will always result in an automatic denial.
Thank you for the insight. I will try that approach and pay off balances in full each month from this point forward.
@Anonymous wrote:I think the rep gave you good advice. Paying minimum payments or just above them is not a good look. The question then turns to why, IMO. Are you simply comfortable paying interest for whatever reason, or are you unable to pay off the card balances? Amex doesn't know the answer to this any more than I do, but if you're unable for whatever reason to pay off your current debt(s) it would be a poor financial decision for them to extend you additional credit via CLIs on your card(s).
I think if you were to pay your balances off that you'd be able to achieve a CLI within a couple of cycles tops.
Very valid points. Putting myself in AMEX shoes I can definately see their reasoning. I don't enjoy paying interest that is for sure lol but I definately have to do a much better job of paying off my cards in full each month.