@NRB525 wrote:
@AverageJoesCredit wrote:
@SBR249 wrote:As an update, I called AmEx about this and they said that it's based on a periodic review and apparently the CLD was due to the usage pattern which is fair.
The CSR on the phone offered me the chance for a review with the potential to restore the CL if I volunteered some info. So he asked for income and assets then was able to restore my CL. I confirmed with him, no hard pull.
All's well that ends well. I guess AmEx could read the writing on the economic wall.
No i dont think it has to do with economy. Using a 13K for only a small monthly subscription is a waste of the limit they gave in their eyes. I think if more lenders did this , we myFicoens would be in alot of trouble
All of the 50% CLD I am aware of are on the no-AF cards.
If you were a bank, would you prefer AF or no-AF cards?If you were a non-MyFICO reader who didn't know about asking for the CL back, would a little-used card getting the CL cut in half matter enough to call AMEX?
I agree it is less about the economy, more about AMEX managing their lending offerings.
If I was a lender I would seek borrowers with high scores, low overall utilization and long clean credit histories. As a lender I want qualified borrowers not a few dollars here and there with subsequent defaults.
As a cardholder I would contact any issuer that took AA. I would want to understand the reason for AA. It would be foolish to just sit back hoping there has not been a breach of some kind.
To date American Express is the only lender that has taken AA on my account. The most recent AA was the second on that card. Makes me wonder why the card was issued. Maybe they should have gone with a toy limit?
The day preceeding the AA Amex pulled Experian at 823. The day of the AA a promo for 1.99% interest arrived via postal mail for the other Amex card. Both are no fee revolvers.
I've decided to just consider American Express entertaining as long as no actual money is involved.
@Save-n-Invest wrote:
@NRB525 wrote:
@AverageJoesCredit wrote:
@SBR249 wrote:As an update, I called AmEx about this and they said that it's based on a periodic review and apparently the CLD was due to the usage pattern which is fair.
The CSR on the phone offered me the chance for a review with the potential to restore the CL if I volunteered some info. So he asked for income and assets then was able to restore my CL. I confirmed with him, no hard pull.
All's well that ends well. I guess AmEx could read the writing on the economic wall.
No i dont think it has to do with economy. Using a 13K for only a small monthly subscription is a waste of the limit they gave in their eyes. I think if more lenders did this , we myFicoens would be in alot of trouble
All of the 50% CLD I am aware of are on the no-AF cards.
If you were a bank, would you prefer AF or no-AF cards?If you were a non-MyFICO reader who didn't know about asking for the CL back, would a little-used card getting the CL cut in half matter enough to call AMEX?
I agree it is less about the economy, more about AMEX managing their lending offerings.
If I was a lender I would seek borrowers with high scores, low overall utilization and long clean credit histories. As a lender I want qualified borrowers not a few dollars here and there with subsequent defaults.
As a cardholder I would contact any issuer that took AA. I would want to understand the reason for AA. It would be foolish to just sit back hoping there has not been a breach of some kind.
To date American Express is the only lender that has taken AA on my account. The most recent AA was the second on that card. Makes me wonder why the card was issued. Maybe they should have gone with a toy limit?
The day preceeding the AA Amex pulled Experian at 823. The day of the AA a promo for 1.99% interest arrived via postal mail for the other Amex card. Both are no fee revolvers.
I've decided to just consider American Express entertaining as long as no actual money is involved.
Lenders at times love the less than prime borrower. It provides a better return when the economy is doing well. 800+ FICO borrowers are low risk but lower return (don't earn much interest on them, they don't generate late fees, etc.)
@Anonymous wrote:
@Anonymous wrote:Most people probably don't know they can be restored. And if they don't know and keep their card, that's less risk they have to deal with. They do risk cardholders closing their accounts but maybe they are willing to take the risk.
This. And if they are cutting unused credit limits (as seems to be the case), a normal person who doesn't know or worry much about the details of credit, isn't going to care too much if their unused $20K limit is cut to $10K, it will still work for them.
Yes, but even Joe Smoe will notice a big cut and possibly question it. I know i would, not a Joe Smoe, but Average Joe nonetheless
.
@AverageJoesCredit wrote:
@Anonymous wrote:
@Anonymous wrote:Most people probably don't know they can be restored. And if they don't know and keep their card, that's less risk they have to deal with. They do risk cardholders closing their accounts but maybe they are willing to take the risk.
This. And if they are cutting unused credit limits (as seems to be the case), a normal person who doesn't know or worry much about the details of credit, isn't going to care too much if their unused $20K limit is cut to $10K, it will still work for them.
Yes, but even Joe Smoe will notice a big cut and possibly question it. I know i would, not a Joe Smoe, but Average Joe nonetheless
A below average Joe might not notice or care.
@Anonymous wrote:
@AverageJoesCredit wrote:
@Anonymous wrote:
@Anonymous wrote:Most people probably don't know they can be restored. And if they don't know and keep their card, that's less risk they have to deal with. They do risk cardholders closing their accounts but maybe they are willing to take the risk.
This. And if they are cutting unused credit limits (as seems to be the case), a normal person who doesn't know or worry much about the details of credit, isn't going to care too much if their unused $20K limit is cut to $10K, it will still work for them.
Yes, but even Joe Smoe will notice a big cut and possibly question it. I know i would, not a Joe Smoe, but Average Joe nonetheless
A below average Joe might not notice or care.
Or anyone who isn't that interested (I hear that such poor souls exist). I get a credit card statement, what matters to these people is how much I owe? And on these accounts its going to be 0 or very small, they don't look for the credit limit, or the APR or anything. It's really just not important!