Ok so this one is a new one to me.
I got an email notice earlier this week that AMEX was putting a spending limit on my Green Card. They said it would be $2600. I've been my rebuilding my credit, responsibly, for two years now. Had a car repo, charge offs, went south on student loans. Was an utter F'n Disaster. But I've been on the straight and arrow for two years now, rehabbed my student loans and have been a good boy on my credit cards.
My FICO's did a dip a bit over the past month because I carried some balances, which I never do, on my cards. Spending for the holidays and it's going to be back down to near zero balance very soon.
My AMEX Green Card monthly bill has averaged $1500, with a total balance (spending after statement cuts) average of $3000. It's always paid off, per agreement of the charge card. So I was a bit baffled when AMEX did this and inquired. They told me I could "challenge" the spending throttle they put on my account so I did that. That was essentially a financial review. I submitted my pay stubs and my assets. I make $110K a year and have a 401K worth about $35K right now, I'm 32 years old and employed.
3 days later, which is today, I log into my Amex account to check on things and I see my spending power was at $22,0000!!!!!!!!!!!!!
Of course my instinct, with my bad credit history was to question it. I called AMEX and they said "we reviewed your account and that's your spending limit thanks for submiitting your documents. You'll be getting a notice in the mail explaining your spending power limit"
Anyway, it's a bizarre situation altogether, even though I'm very happy about it. It's a charge card so I will never go near the $22K spending on it obviously. The hilarious thing is they still wouldn't upgrade me to the GOLD, telling me that will happen at my 12 month mark this upcoming April. But it's nice to know what my power is, I love the AMEX charge cards because it keeps you in check on your spending but it is weird when you don't know what you can spend on it. Having this known limit now, is fantastic. I know exactly what I can spend on it and month-to-month.
Has this happened to anyone before???? I haven't read too much on credit limits on charge cards.
642 This morning on my Experian account
And here's a snapshot of my account......where it says available credit, it always used to just say "Check my spending power"
Welcome to the AMEX family, the spending "limit" will also adjust to your spending and paying habits. So don't be surprised if it drops to $10,000 or goes up to $35,000.
Upgrade, on your 12th month ( I was able to do it on the 11th ) you are able to upgrade to a Gold or a Platinum depending on what you are needing. This is do to bank regulation for the "annual fee" not necessarily your credit. There is no point in you asking for the upgrade until then, their hands are tied.
Hope this helps.
Great feedback thank you!
I should have rephrased the topic. I'm aware this isn't a CLI. This is a charge card and everything as far as I'm concerned is PIF on this thing. I don't even want to dabble in POT.
Just was weird that they put this huge restriction my card, I submit some info and then 3 days later whammo.....I see this.
@Anonymous wrote:Although you may think that it is, it doesn't appear that the new $22K limit is a CLI. The typical Pay Over Time limit on an Amex charge card is $35K, so seen in that light it appears that Amex has imposed a temporary restriction (Since charge cards have no preset spending limit, the POT limit is used as a proxy for an actual credit limit). That's perhaps understandable given your currentl FICO 8 score and the derogatories in your credit history. Amex doesn't really play in the sub-prime market so it would be in your best interest to get your score up to at least 670.
Just wanted to respond to this. I don't have POT activated on this card, AMEX is telling me I'm not eligible for POT according to AMEX. I just want to be clear on that for further discussions on this. They told me my pre-set spending limit is $22,000 right now for my Green Card, after I submitted my documents to them.
Just wait, that 110k income is gonna open alot of doors for you on their revolvers
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