Amex hates me

[Samac]

So I have an AMEX everyday card. I’ve had it since 2016 when I first really started building my credit. My score is a 788 via their FICO. They have never upped me from
my $3,000 credit limit because deferred federal student loans, they’re hefty, over 100k. My income is about 45,000, and I also have a significant chunk banked that I do list on my assets. All of my other cards started 2014-2016 in the same credit limit range, but they’ve all moved with the lowest being $8000 (other than a few store cards)

They gave me a pre-approval for the Hilton Honors card. I stay at Hilton’s often and even though it was Amex, I was fine with having a low limit. The bonus on the card was great. So I applied.
Denied.
“We are required by federal regulations to evaluate your capacity to take on new debt. The amount of your annual income and/or financial assets known to us is insufficient in relation to the credit you've applied for and your overall debt obligations as reflected in our records and on your credit report”
I mean, it’s the federal student loans. The only other debt I have is $10000 left on a car payment.

I just wanted to rant for a minute. I keep the card open for age of credit.
I threatened to cancel and they were going to let me. I backtracked and flat out told them that I’d keep it open for age of credit. 🤷🏼‍♀️

[Anonymous]

Not commenting on whether you should close it but closing it would have little to no effect on your score and "age of credit", closed accounts will continue to age and report for up to 10 years, since it's not your oldest account, it will not change the age of your oldest account and barely affects your average age of accounts when it falls off your report in 10 years.

[Anonymous]

Are you currently a student?

[NRB525]

Sorry to hear the denial OP. The Hilton cards are nice for combining with Hilton stays.

How much spend do you run through the ED in a typical month? What is your MR points balance?

[CreditInspired]

Hi OP

AmX doesn’t hate you; they’re being realistic and risk-prudent.

$100K+ is a lot of unsecured debt for a $45K salary, just saying. And since all your other CCs are $8K+ CLs, depending on balances and UT, that’s additional debt that spooks AmX.

What is your aggregate UT and UT on each card? Are you carrying balances on your cards?

IMHO if you are carrying balances, it may be a good idea to take some of the significant chunk you have in assets and pay some of the balances down or even pay the student loan balances down. This may help AmX see you in a less risky financial position.

[AverageJoesCredit]

Never threaten to close an account on a creditor and think it will have any affect. We are but replaceable numbers to them. Lose one customer gain another.

[Samac]

I am currently a student and working.

I don’t spend a lot of only ED anymore since they wouldn’t up the credit limit. It’s like $100 a month max now. Just cashed out my MR rewards last month on gift cards. Not the best use of them I know, but I’m giving them away for Christmas. It was $400 worth.

@CreditInspired 100k is a lot of unsecured debt, and it’s 5 other non store cards that have those limits, my citi double cash, discover it, BoA travel rewards, chase freedom, and marvel CC. I have $642 reporting total right now. I pay my debt off every month. I don’t carry balances.

And yeah AverageJoesCredit it didn’t work lol. Thought it was worth a shot.

[RonM21]

Op, don't be so down on yourself. The way I see it, you are still a student, working, have a good score, and by what it appears, you are handling your credit well. Yes the loans are there, but you will get through that if you keep on the course you are on. Part of this will require patience, but you should be fine. Keep doing what you are doing.

[Samac]

Thanks for the kind words.
It’s always been a big thing for me to build my credit early to be able to get the best possible rates when I want to buy a house.

But dang, I thought I’d be able to get the Hilton card I was pre-approved for lol