To complete the story.... My purchase was plane tickets from BA
And on, and on... People do strange stuff. They do it because they don't recognize it as being strange. You have to dig a little deeper in most cases to get the real reasons why people get AA from their lenders.
There are a lot of people that do all sorts of *bad* stuff with their Amex, and see no repurcussions, myself included. Stuff like...shopping at walmart, making medical payments, carrying small balances, buying liquor from the casino bar at 3am, etc....
I've read a lot of Amex FR and AA stories, and most seem to have a common theme. That theme is usually that the storyteller isn't giving you the full story. Sometimes it is intentional, sometimes it is ignorance about what Amex and other CC's are looking at. They just see a letter that says "risky purchases", and suddenly believe anyone who uses Amex at Walmart is going to get FR'd. What they fail to mention or recognize is that maxing out the card, carrying large balances, only making minimum payments, paying off large portions of balances and then immediately charging it back...all these things are the real reasons.
But you're never going to get a letter from Amex that says...
Please don't actually use the entire credit line we said you could
Please don't revolve a balance on our revolving credit cards
Please pay your balance in full...the minimum payment is just something we're required to put on there
Please don't stop using your card for six months, and then suddenly max it out with medical bills
I can safely say that AmEx or any other creditor doesn't need any reason perceived or otherwise to cut your credit limits. I was speaking about my son in an earlier post. I have seen his credit reports since before he was approved and every month after that. I can assure you that nothing has changed in any way. For the short period of time he had the card he used it for 10% of the CL every month and paid it off either brfore or after the statements cut. AmEx can be like the crazy supermodel at times.
In my view, sometimes--for whatever reason--a firm or company just doesn't want a certain client. In those cases, given the PC litigious society in which we live, every firm needs to give a legal objective reason and transparent process in which it sheds customers.
I think Amex just uses the FR as a ways and means to ensure clients with escalating charges can pay, and to surgically remove some cardholders who don't or no longer fit their risk and usage tolerance levels.
+1. I own a service business, and there are quite a few times when I've had to "fire" a client - even ones who have done business with me for a lot of years. Most of the time, it's because of non-payment, not adhering to the terms of the contract they signed with me, or chronically late payments! The irony!
Sooo I made a some purchases on my blue cash card carrying a balance of $4000. I could have paid this off but the I decided to pay it over time as I had 0% APR until Feb 2011. I logged on to my account a few days later and I see my limit had been cut from $10000 to $4200 leaving me available credit of $148. SO I called their customer service and I was told the limit I was issued initially was an error and it was just corrected. Kind of bemused about it all.
I have to say, that is by far the most cockamamie reason for a CLD I've ever heard.
One reason Amex will take AA (and sorry if I missed it in this thread) even if your record with THEM is perfect, is what they see you doing with your other accounts. Check your Amex soft pulls and you will see that they tend to keep tabs on their cardmembers. If you are exhibiting "risky" behavior with some other lenders or your debt position changes dramatically elsewhere, they may take AA as a defensive measure.