Amex Credit Line Increase (w/Balance above Limit)

[MikeyMagic]

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@Zoostation1 wrote:

@MikeyMagicBalance chasing is lowering the credit limit as you pay down the balance.  This is a real risk when you have a high balance relative to your credit limit, particularly when it stays high for an extended period of time. If you have a dirty or young credit profile the risk is higher and may take a shorter time period of high balances before (AA) adverse action is taken. Once a lender starts balance chasing you it can create a negative feedback loop where as you pay down your debt further your credit limit is lowered each time and thus your utilization percentage stays high until the account is paid off.  The lowered limits and persistent high utilization can also lead to adverse action from other lenders you have creidt cards with as well. This isn't to say it's never ok to take advantage of a balance transfer offer (BT's that are paid off very slowly can be a red flag to lenders ieven if you have the means to pay it in full ) or that a month or two of high balances carried over is going to lead to AA.  Just try to avoid situations where you can't pay in full each month whenever possible.

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Thanks so much for the detailed explanation, totally understand now. And thx for the advice too.

[youngandcreditwrthy]

do you have the ability to pay the balance in full at its current state? (including any emergency monies available to you) 

If yes, then you should be good. 

People seem to forget that bank algorithms can be incorrect and are incorrect pretty often. 

If you're utilizing this card super heavy and pif, then a credit increase is warranted unlike the scenario in which you are only paying minimums and charging it up to the max every month (and amex being what they are wouldnt let you do that anyway!)

as far as DP, amex soft pulls reports constantly and it should be just a soft pull to find out if you qualify. no harm in asking. let us know. Cause if you do pay in full every month, and genuinely need a higher limit.. or mostly pay in full, then a CLI could be warranted.