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