AMEX credit limit decrease

[HeavenOhio]

Credit limits are generally decreased for one of two reasons:

1. Low usage
2. High balances coupled with not paying them down fast enough

Some banks are more tolerant than others. Discover tends to tolerate both low usage and high protracted balances, although there are indications that they might be tightening up. Capital One has decreased limits due to extremely low usage, but they're tolerant of protracted high balances. NFCU is usually tolerant of both situations. Comenity and Synchrony are known for tolerating neither.

Chase, Citi, and Bank of America, and others are known to balance chase. AMEX may be among the quickest to balance chase. But their balance chasing is often a single CLD rather than chasing you all the way to zero.

Of all the prominent lenders, AMEX is far and away the easiest if you try to get a limit restored after a CLD.

[Anonymous]

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@Anonymous wrote:

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Without touching on the rest of your post, I feel the need to point out that this is just the start.Citii andAMEXX were just the first to react but if you don't fix whatever spooked them, the domino effect will kick in as the algorithms of your other cards start reacting to the sudden AA. If you would like assistance with avoiding that outcome, sharing your cards, limits, balances, and scores with us is a great start. 

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That is not going to happen... My other card issuers operate on the level and adhere to the "golden rule" of business.

I am going to post up more photos here in just a bit.

I am more interested in getting the word out because honestly things like line cuts don't hurt me - it's corresponding credit score hit that really matters. Kind of hard to leave a company when they are lowering your credit line making you look like you're at near 80% utilization! So I pay it off and what do they do? Whack it another 50%! Not even kidding!

[GApeachy]

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@GApeachy wrote:

@Stellar007 wrote:

my AMEX Business card that they whacked the limit to $5,000! Once I tried to use it for a $10k transaction and it declined the charge and I got a call from their customer service trying to accuse me of doing something wrong! Thank goodness I have a Discover card with a $17k limit and that $10k was no problem for them. 

Is this not a cause for concern?  A possible cause?

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Okay, last time I will ask.....doesn't look like OP will have the answer for me but would still want to know if you ran a 10k transaction on a 5k limit and if so, did you "FIRST" try the "Spending Power" option provided via telephone and/or online tool?

I'd like to know as I am a new business customer and you stated you were accused by Amex of wrong doing.........this is concerning and I'd like to understand the process.  

ONLY IF YOU WILL ANSWER THE ? x 4

[Anonymous]

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@Anonymous wrote:

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@Anonymous wrote:

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Without touching on the rest of your post, I feel the need to point out that this is just the start. Citi and AMEX were just the first to react but if you don't fix whatever spooked them, the domino effect will kick in as the algorithms of your other cards start reacting to the sudden AA. If you would like assistance with avoiding that outcome, sharing your cards, limits, balances, and scores with us is a great start. 

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That is not going to happen... My other card issuers opperate on the level and ahere to the "golden rule" of business.

I am going to post up more photos here in just a bit.

I am more interested in getting the word out because honestly things like line cuts don't hurt me - it's corrisponding credit score hit that really matters. Kind of hard to leave a company when they are lowering your credit line making you look like you're at near 80% utilization! So I pay it off and what do they do? Whack it another 50%! Not even kidding!

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You're acting like we don't know how these lenders work. There are very few that will be tolerant of other lenders taking AA and not take AA on their own but if you aren't interested in hearing about it, that is your decision. 

Balance chasing is awful and if you have options to either pay off that debt and close that card or move the debt to another card, I would definitely advise doing so. 

Since you don't seem interested in avoiding any further AA, I wish you all the best. 

[OmarGB9]

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@Anonymous wrote:

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@Anonymous wrote:

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Without touching on the rest of your post, I feel the need to point out that this is just the start. Citi and AMEX were just the first to react but if you don't fix whatever spooked them, the domino effect will kick in as the algorithms of your other cards start reacting to the sudden AA. If you would like assistance with avoiding that outcome, sharing your cards, limits, balances, and scores with us is a great start. 

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That is not going to happen... My other card issuers opperate on the level and ahere to the "golden rule" of business.

I am going to post up more photos here in just a bit.

I am more interested in getting the word out because honestly things like line cuts don't hurt me - it's corrisponding credit score hit that really matters. Kind of hard to leave a company when they are lowering your credit line making you look like you're at near 80% utilization! So I pay it off and what do they do? Whack it another 50%! Not even kidding!

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Not trying to start anything here, but you can't possibly ever know that for sure. Lenders can and do take AA at any time, for any reason. They can close the account at any time, for any reason. Just like you can. It's in the terms and conditions. And one may very well never know that reason. And once AA happens on one account, as it has been mentioned, often times it leads to other lenders following suit.

[Anonymous]

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@PutThatMoneyOnTheTable wrote:

Also note that credit card companies are obligated to report factual information to the credit reporting agencies. These agencies have different algorithms in place to arrive at a "score". It is in my belief that no credit card company in out there intentionally trying to "mess up" an individual report/score. With that said, last month I let all of my cards report a balance (all less that 2% utilization) and my score tanked 26-28 points between agencies due to " too many accounts reporting a balance". So that could be a factor for the poor scores you currently have and what spooked Amex to credit chase you. 

You also mentioned "paying on time" but paying on time does not equal paying in full after each statement. Only paying the minimum or slightly more but still carrying a balance (a consistent amount or increasing amount) could spook conservative lenders (or any lenders period).

As for my previous reply, I was not aware that the CSR stated where they were located but it seems logical that companies (such as Amex) will have systems in place to protect customers information. 

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Not to go OT, but quickly, I always report a balance on all cards. If you lost 26 pts by doing it, will I gain 26 for not doing that? lol I bet not.

I will post about this once I report only 3 cards w/balances early next year to see effect on score, and then 0 cards with balances after that. I have a hunch that there is a hidden upside to "score stability" by reporting balances on all every month. Kind of like a pipe in cement. Hard to budge it.

[HeavenOhio]

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@Anonymous wrote:
So I pay it off and what do they do? Whack it another 50%! Not even kidding!

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That would be the typical scenario for a lot of lenders, including Citi and the others I mentioned a couple of posts above. I think AMEX will leave you alone for the time being.

[jbestman007]

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@Anonymous wrote:

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@jbestman007 wrote:

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@Anonymous wrote:

Wow, 

My thread has been seriously censored on this site! 

I tried to follow some links to responses and it says I don't have access..

I would just like to say that MyFico is not an honest place to post your experiences as they censor and create drama as a result of said censorship. I do have many other outlets to post my experiences and I will use them!

I will also post about my experiences here at MyFico and back them up with screen shots. 

This is a very poor forum for customers, I think it is more geared towards propping up the lenders than letting the customers express themselves. Beware.

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You should also really work on taking personal responsibility. From your posts I got none of that. It is everybody else's fault.

Good luck on your other forums. For me, and many others here, we get a lot of useful information here and absolutely love it. 

To each its own. 

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I am taking personal responsibility! I am posting my expereinces! 

I am not in here demaning anything! I am fine with my 17 other cards business practices - my issues are with AMEX.

Look at you talking down to me, like you have half the cards that I carry! LOL

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Actually, I have less than half the cards you carry. Heck, I might even make less than a quarter of what you make. That has nothing to do with anything. You have been asked multiple times to provide data points to allow a more educated discussion about your issue with Amex. You have failed to do so. Instead, you keep referring to deleted posts and links. Sounds like you are more interested in a smear campaign than anything else. Unfortunately, you are in the wrong forum for that. If that is indeed your primary motive for posting here you will continue to be frustrated

Also, something about what you are saying does not add up. I am struggling to see how CLDs on a couple of Amex cards would depress your FICO score as much as they have, when you have 17 cards, all in good standing, with good limits, and under acceptable utilization. There is something you are not telling us or there is something else going on in your profile that you are not aware of. Unfortunately, your Amex fixation may not allow you or anyone else to see it. 

[ChessChik47]

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@GApeachy wrote:

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@GApeachy wrote:

@Stellar007 wrote:

my AMEX Business card that they whacked the limit to $5,000! Once I tried to use it for a $10k transaction and it declined the charge and I got a call from their customer service trying to accuse me of doing something wrong! Thank goodness I have a Discover card with a $17k limit and that $10k was no problem for them. 

Is this not a cause for concern?  A possible cause?

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Okay, last time I will ask.....doesn't look like OP will have the answer for me but would still want to know if you ran a 10k transaction on a 5k limit and if so, did you "FIRST" try the "Spending Power" option provided via telephone and/or online tool?

I'd like to know as I am a new business owner and you stated you were accused by Amex of wrong doing.........this is concerning and I'd like to understand the process.  

ONLY IF YOU WILL ANSWER THE ? x 4

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Let it go, GApeachy!  The OP clearly isn't interested in any advice from us, just seems to want to vent and make sure everyone is aware of his distaste for AMEX.   I think he's made his point.   To me this thread has run it's course and I'm out.  

[GApeachy]

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@ChessChik47 wrote:

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@GApeachy wrote:

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@GApeachy wrote:

@Stellar007 wrote:

my AMEX Business card that they whacked the limit to $5,000! Once I tried to use it for a $10k transaction and it declined the charge and I got a call from their customer service trying to accuse me of doing something wrong! Thank goodness I have a Discover card with a $17k limit and that $10k was no problem for them. 

Is this not a cause for concern?  A possible cause?

---

Okay, last time I will ask.....doesn't look like OP will have the answer for me but would still want to know if you ran a 10k transaction on a 5k limit and if so, did you "FIRST" try the "Spending Power" option provided via telephone and/or online tool?

I'd like to know as I am a new business owner and you stated you were accused by Amex of wrong doing.........this is concerning and I'd like to understand the process.  

ONLY IF YOU WILL ANSWER THE ? x 4

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Let it go, GApeachy!  The OP clearly isn't interested in any advice from us, just seems to want to vent and make sure everyone is aware of his distaste for AMEX.   I think he's made his point.   To me this thread has run it's course and I'm out.  

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