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American Express Approved - What's Next?

freespirit87
New Visitor

American Express Approved - What's Next?

I have been in the credit rebuilding mode for the last two years after some business losses... I started with scores around 550-600 and finally got back to just under 700 last year. Once I got there, I was finally able to get in with American Express (never had American Express before). At the time, I was approved for their personal charge card... Fast forward to this year-- I finally got rid of the last three  baddies from my reports, and all of my scores shot up to almost to 750 according to MyFico. Super excited, I applied for my second American Express card, this time their credit card, not their charge card. Instant approval but only $1000...

 

Right after I clicked that Submit button and saw $1000 on the screen, I immediately realized what the problem was... In giving me $1000 limit, American Express used my score from a month ago, which was 672 according to American Express website. In fact, this is what their website still shows, they did not refresh it yet. So I should have just waited another month or so... Now, I know that I can do a 3X CLI in 61 days but that will get me only to $3000. And then another CLI in 6 months will possibly get me to $9000.... All my other credit lines have much higher limits (I obtained them before my scores dropped). So I am thinking of just cancelling the new American Express card and re-applying in 1-2 months. This way, I can probably get a much higher limit to start, now that my reports are squeaky clean. I finally paid down all of my credit card debt and I only have two inquiries, including one from American Express. I can still do 3X in 61 days then but I will be starting with a much higher limit...

 

Has anyone done this-- closed American Express card immediately because their starting limit was ridiculously low and then re-applied a month or two later? I understand that the standard advise is just wait things out but I really don't have much of a use for a $1000 or a $3000 card for the next year... Aside from negatively impacting my AAoA, is there any harm in just closing the card immediately and trying once again a month or two later, once American Express refreshes my score?

 

 

Message 1 of 12
11 REPLIES 11
JAG73
Moderator

Re: American Express Approved - What's Next?

Congrats on your approval. 

Although your not thrilled with your starting CL, I wouldn’t close it. If your profile has improved as you’ve stated, their shouldn’t be an issue with getting CLI’s in the future. Amex credit cards do have the ability to grow, just be patient. 

Got some pruning to do... No more new cards!
Message 2 of 12
19eighty5
Senior Contributor

Re: American Express Approved - What's Next?

Congratulations on your approval! I would wait instead of closing your account and wasting another HP.

FICO 8 (Feb 2018):EX- 519, TU- 530, EQ- 545
FICO 8 (Mar 2020):EX- 689, TU- 665, EQ- 670
What's in my wallet:



On the chopping block:

Message 3 of 12
Brian_Earl_Spilner
Community Leader
Mega Contributor

Re: American Express Approved - What's Next?

Amex has specific writing in their terms and conditions for when you close a card sooner than 12 months old. They could consider you a gamer/churner and it would affect future approvals and SUBs.







Message 4 of 12
Priory_Man
Established Contributor

Re: American Express Approved - What's Next?

Congrats on the approval.
I wouldn't close the account let it grow over the next few years.
If you are itching to get something with a higher SL then wait a month or so until Amex pulls your new score and take a look at another card with them.
What card did you get this time? Does it have an AF attached to it?





~~ Former Royal Navy Submariner - Proud to have served ~~
Message 5 of 12
pinkandgrey
Community Leader
Senior Contributor

Re: American Express Approved - What's Next?

It will grow. Just have patience. Plus, if you close a card so quickly, Amex may not be as generous in the future. They may deny you SUBs. 

Discover It: 19.7k
Amex ED: 18k
Citi DC: 7.7k
FNBO Rewards Visa: 3.2k
~~~~~~~~~~~~~~~~~~
Once you go Berner, you never go back.
Message 6 of 12
Meskini
New Contributor

Re: American Express Approved - What's Next?

with such low inquiries you can always see if you prequalify for other Amex and apply. this way you can see if you will get higher CL.  



We live and learn!
Message 7 of 12
AverageJoesCredit
Community Leader
Mega Contributor

Re: American Express Approved - What's Next?

Close it that quick and try to reapply a month later will definetly put you on Amex radar and not for the better. If a 1k or 3k limit is useless you might need to wait awile to get high enough limits. Unfortunately sometimes you need the card to grow so a lender will feel comfortable extending you higher credit limit. Theoretically in a year with Amex you could go from 1 to 3 to 9k or 3 to 9 to 27k so growth potential is there.
Message 8 of 12
AverageJoesCredit
Community Leader
Mega Contributor

Re: American Express Approved - What's Next?

Also of note , score alone doesnt determine your starting alone. Ive been as high as 760+ and my sl has been 2k. More importsnt then your score is your overall profile and especially income. You very well could applied with a 750 snd still got 1k. All depends on how comfortable Amex is in lending your particular profile.
Message 9 of 12
xaximus
Valued Contributor

Re: American Express Approved - What's Next?

Congrats on the approval and as many others above stated, I would not close it. Use it, get the SUB, do the ex 61 day CLI, keep using it and you'll get another 3x in 6 months. It will grow with time. You can always apply for another Amex card (give it about 6 months though to establish some history).


Scores - All bureaus 756 +
TCL - Est. $275K
Message 10 of 12
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