AMEX BCE Lowered CLI

[Anonymous]

I've had a AMEX BCE card for about 1 year. I was able to successfully raise the limit from $500 to $1500 in about 6 months, but then it stagnated and only went to $2000. Flash forward to last month and I had an issue with autopay on my citi card, for some reason it was taking money out of my bank and then refunding it and then my payment wasn't received. I admittely didn't check my email enough but I got a credit alert that my score went from 680 to 595.

Called Citi card and they fixed the issue, something was not processing through my bank account properly and it went 60 days past due. They removed the late fee's and removed any last payments on my credit report. My score is now 670 ish, which I believe I can attest to the utilization % raising because amex lowered my limit while I had about 60% utilization.

I call AMEX and they tell me to pound sand and make a $350 payment by Sept 20th to get the old limit. I have no problem making the payment because it will lower my utilization which I want to do anyway, but... when I tried to explain that the score was only "temporarily" lower they didn't seem to care. Is there anything I can do? I'm planning to PIF this card regardless and hopefully get a 3x limit increase in the next 180 days.

[AverageJoesCredit]

Im not sure i understand your question. If you make your payment to Amex they said they would restore your original limit. Not much else to do but pay. Why did they tell you to pound sand?

[K-in-Boston]

I know it's difficult to do, but you need to look at it from Amex's standpoint.  Anyone could call and say there are errors on their report, but Amex has to take anything on your credit reports at face value.  Your reports say that you are an extremely high risk for default, whether that is true or not.  Now that it's cleared up, hopefully Amex will restore your limit automatically or when you ask for the 3x CLI.

[Anonymous]

Is there anything I can do to better my 3x cli odds? PIF and use it a few times and PIF every month for awhile?

My score is 67x-68x right now. I just made the $350 payment, I don't want to do the math right now but between the $350 payment and $500 more credit it should lower my total utilization to below 55%. After that I've never had a missed payment, my average age of credit is 3 years and a 20k car loan I regularily pay. I can lower my utilization more and... just wait? I make 70k/yr but it seems like ALL of my cards have low limits, I'm not sure if its preventing me from anything but it seems like I've had  casual conversations with people that have less favorable credit history or income and gotten approved for bigger cards. 

Discover IT - 2500 limit

Chase Freedom - 2500 limit

Citi - 2000 Limit

[K-in-Boston]

I think you answered all of your own questions.

Use the Amex card, PIF, and ask for CLIs when the calendar says so.  Same with the Citi and the Discover. Use them, PIF, and ask for CLIs when available.  Unfortunately, waiting is the biggest (and hardest) part of growing credit history and credit lines.  Getting started with that first or second big credit line is the hard part.  I also know how frustrating it can be to see those who may have what appears to be far worse profiles getting better limits and terms.  Believe it or not, CapOne declined me for a Venture card about 18 months ago (the only lender to deny me a new card in at least a decade).  My credit reports are thick and squeaky clean (and I had been a customer for over 20 years), yet I was seeing approvals left and right for $20k and $30k for people with far less income, blemished reports, etc.  (Even people who had burned CapOne in the past!)

[Anonymous]

Were you ever in Amex's version of "credit steps?"

[xaximus]

OP - have you checked your credit to make sure you dont have any baddies/lates? I know you stated you have none but I would check again. You can get 1 free report from all 3 bureaus once a year (if you havn't done so already), also CCT has a $1 trial you can use as well to check your scores. Based on your history, income, TCL, and UTI- I would guess your score should be in the 700's (IMHO). Something isn't adding up if everything stated is correct. I would definitely check and make sure.

[Anonymous]

James,

  If you ended up at 60% UTI on available credit lines of 7500, that means you currently owe $4500.  I don't know if you PIF after letting statement balances report or you are carrying the balances.  While the error from Citi may have turned out in your favor, it also threw up a red flag.  If you plan on getting a 3X cli in the future, you'll need to lower those reporting balances IMO.  You say you went from 500 to 1500 to 2k.  I believe the balances that are reporting are hurting not only your scores but your potential to get a significant increase.

[Gollum]

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@Anonymous wrote:

Is there anything I can do to better my 3x cli odds? PIF and use it a few times and PIF every month for awhile?

My score is 67x-68x right now. I just made the $350 payment, I don't want to do the math right now but between the $350 payment and $500 more credit it should lower my total utilization to below 55%. After that I've never had a missed payment, my average age of credit is 3 years and a 20k car loan I regularily pay. I can lower my utilization more and... just wait? I make 70k/yr but it seems like ALL of my cards have low limits, I'm not sure if its preventing me from anything but it seems like I've had  casual conversations with people that have less favorable credit history or income and gotten approved for bigger cards. 

Discover IT - 2500 limit

Chase Freedom - 2500 limit

Citi - 2000 Limit

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It sounds like American Express will give your old credit limit back, so that's good news.

I know you'd like to have higher credit limits on your credit cards, but I'm wondering about the interest rate for your existing car loan: it may be an opportunity for you to lower the monthly payments on your car loan.  Credit unions generally have lower interest rates for loans than banks or finance companies that car dealers use, but it seems like credit unions require a credit inquiry to join.  I suggest talking to someone in person at whichever bank you use for your current checking account to see if that bank could pay off your existing car loan and give you a car loan at a lower interest rate.  You'd have to have a credit inquiry for a new loan, but whoever you talk to at the bank should be able to give you an idea how likely a lower interest rate car loan through that bank is before actually doing a hard pull.

Edit: Hard pull = credit inquiry that counts against your FICO score; soft pull is a credit inquiry done by a current creditor and does not count against your FICO score.

Whether or not you can get a different car loan at a lower interest rate, paying the car loan on time should be a big help for your credit scores, so the car loan will sorta help you with your credit cards eventually.

[Anonymous]

I would also double check your reports for any baddies.

ALso, high utilization looks worse to lenders than lower util.

Remember, to use a credit card wisely is done in your favor.

Carrying balances is normally not in favor to your score and also

to you when you pay interest.

If, you have 0% intro apr on those balances, that may be fine,

however you still take the fico score hit. And will have lower

scores during the higher utilization.