AMEX Cutting My Available Credit

[Pigeyex]

After successfully getting the standard 3x CLI -- twice -- from AmEx, and getting my CL on my Blue Everyday card up to $24,000, I've now received an email from them saying they have decreased my CL to just $10,700!

They also recently cut my "Pay Over Time" limit on my Green card.

My utilization has gone up rather significantly recently, with some large family expenses related to a funeral and a wedding, from my usual 10-15% to just over 50%, but I have never missed -- or even been late on -- a payment!  No to Amex on either of my two cards, not to ANY other vendor on my credit reports for over 43 months now.

I called customer service to ask for reconsideration (they have left me with only $171 in available credit!  I can't even book a hotel room for two nights for my family to take a vacation next month!), and they gave me two options:

1.  Make a payment on my account of $5,250 by 9/15/2015 and they will restore my previous CL; or

2.  Send in some requested documents (which they are going to email me -- apparently verfication of income, assets, etc.).

This just seems like BLACKMAIL to me.  What's the point of having a high CL if you can't occasionally USE it!  My score when they approved me to the $24k CL was probably about 705; it is now 692 (and it's going to take a bigger hit when this significantly lower CL affects my overall credit util).  I know that Amex periodically reviews their accounts and makes adjustments, but this just doesn't seem right.

Any advice?

Paul

[gdale6]

I have made a new thread for your post. I changed the title which you are free to change again if you desire with the edit function on your post everything else has been left intact.

[sjt]

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@Pigeyex wrote:

After successfully getting the standard 3x CLI -- twice -- from AmEx, and getting my CL on my Blue Everyday card up to $24,000, I've now received an email from them saying they have decreased my CL to just $10,700!

They also recently cut my "Pay Over Time" limit on my Green card.

My utilization has gone up rather significantly recently, with some large family expenses related to a funeral and a wedding, from my usual 10-15% to just over 50%, but I have never missed -- or even been late on -- a payment!  No to Amex on either of my two cards, not to ANY other vendor on my credit reports for over 43 months now.

I called customer service to ask for reconsideration (they have left me with only $171 in available credit!  I can't even book a hotel room for two nights for my family to take a vacation next month!), and they gave me two options:

1.  Make a payment on my account of $5,250 by 9/15/2015 and they will restore my previous CL; or

2.  Send in some requested documents (which they are going to email me -- apparently verfication of income, assets, etc.).

This just seems like BLACKMAIL to me.  What's the point of having a high CL if you can't occasionally USE it!  My score when they approved me to the $24k CL was probably about 705; it is now 692 (and it's going to take a bigger hit when this significantly lower CL affects my overall credit util).  I know that Amex periodically reviews their accounts and makes adjustments, but this just doesn't seem right.

Any advice?

Paul

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I understand that you think it sucks and it does, but to be fair no other creditor would have given you a choice or even let you keep the account open. Most creditors would have closed your account.

If you have the requested payment I would send it to them to resotre your CL, otherwise I would send them the requested documentation.

[kdm31091]

Its within their right. You are borrowing their money after all.

Id send in what you need to and go from there. Sorry to hear it but glad you posted this because some people (not you) think theyre invincible and this will open others eyes.

[mikelo22]

So as I understand it, you were carrying a hefty balance on your Amex.  How much were you paying monthly? The Minimum?

Amex does watch spending habits. Seeing that UTIL shoot up so dramatically may have raised a flag.  Amex traditionally doesn't like large, unpaid balances (unconfirmed), and they especially don't like when you pay the minimum (confirmed).

Amex is fine with you using your CL, but they want to see that you have the ability to actually pay it back.  Thus, they are well within their right to reduce the CL.

If you want it reinstated, I'd send them the docs.  You should feel fortunate because other lenders would outright refuse to reinstate the CL.  At least Amex is giving you a chance to get it reinstated.

[Anonymous]

Ouch! that sucks. Sorry to hear about that. I'm a little irked at Amex myself since they denied me my 3x CLI after having the card for a month, but I guess based on what they did to you it may not be such a bad thing. I would say that your best bet is to apply for a new credit card. I would suggest the Venture Card since with your scores (depending on your income and other reporting items) you can usually get a limit of around 10-15k, or since you have a balance the Chase Slate with 0% interest for 15 months would probably also be beneficial. As for working with Amex I think going through their verification process might be the only way....unless your willing to shell out 5k all at once.

[baller4life]

Unfortunately I have seen countless of these Amex threads which is why I never carry a balance on Amex. Sorry OP. I hope it all gets worked out!

[Anonymous]

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@Anonymous wrote:

Ouch! that sucks. Sorry to hear about that. I'm a little irked at Amex myself since they denied me my 3x CLI after having the card for a month, but I guess based on what they did to you it may not be such a bad thing. I would say that your best bet is to apply for a new credit card. I would suggest the Venture Card since with your scores (depending on your income and other reporting items) you can usually get a limit of around 10-15k, or since you have a balance the Chase Slate with 0% interest for 15 months would probably also be beneficial. As for working with Amex I think going through their verification process might be the only way....unless your willing to shell out 5k all at once.

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Getting a new card certainly won't help OP with Amex (and potentially make it worse).  While it might help global util, it sounds like the card is maxed out at the new lower  limit and that will hurt.

[red259]

Were you carrying a balance on a card where you did not have 0% apr? If so then it's hard to fault Amex for being nervous here. If someone had the money logic dictates they would pif to avoid constant interest charges. I agree with others that different lenders would just close the accounts or balance chance. Here Amex will let you pay it down and give back credit line. It's annoying but it is their money they are looking out for and this type of situation is a big red flag. If they did this on a 0% apt card then it be different.

[ramblinggirl]

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@Pigeyex wrote:

After successfully getting the standard 3x CLI -- twice -- from AmEx, and getting my CL on my Blue Everyday card up to $24,000, I've now received an email from them saying they have decreased my CL to just $10,700!

They also recently cut my "Pay Over Time" limit on my Green card.

My utilization has gone up rather significantly recently, with some large family expenses related to a funeral and a wedding, from my usual 10-15% to just over 50%, but I have never missed -- or even been late on -- a payment!  No to Amex on either of my two cards, not to ANY other vendor on my credit reports for over 43 months now.

I called customer service to ask for reconsideration (they have left me with only $171 in available credit!  I can't even book a hotel room for two nights for my family to take a vacation next month!), and they gave me two options:

1.  Make a payment on my account of $5,250 by 9/15/2015 and they will restore my previous CL; or

2.  Send in some requested documents (which they are going to email me -- apparently verfication of income, assets, etc.).

This just seems like BLACKMAIL to me.  What's the point of having a high CL if you can't occasionally USE it!  My score when they approved me to the $24k CL was probably about 705; it is now 692 (and it's going to take a bigger hit when this significantly lower CL affects my overall credit util).  I know that Amex periodically reviews their accounts and makes adjustments, but this just doesn't seem right.

Any advice?

Paul

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im with you -why give a lg credit line if they plan to penalized you  if you use it..Other posters have said  that if you plan to make a lg purchase on your credit card-call the credit card co and let them know-it may help.