American Express cancelled my account

[GregB]

I have been hit hard by Amex new account policies and think they have gone way too far. However,

I can see some legitimate reasons for Amex concern with the OP.

1. He considers a FICO score of 635 and owing 50% of his available credit to be acceptable.

2. He considers consistently paying "more than minimums" to be OK. He says nothing about regularly PIF.

3. He doesn't quite get it that he is deeply in debt and it wouldn't take much to push him over the edge.

4. He is relying on continuing income to keep disaster away. Jobs can be gone quickly

I assume that he is inexperienced and should take this as a warning sign to get in a better credit position. Since he "paid Amex $1000 last month" and has a $1100 CL, it should be fairly easy to PIF that account soon so that it doesn't affect his FICO score for very long, if at all. Worst case, take a cash advance against another account that is NOT USED AT ALL. Hopefully he doesn't have big balances on ALL his accounts.

With a bit of care, he can end up with a more reasonable FICO and work on getting all of his accounts in a better position. Hopefully that won't result in higher limits and him digging himself into a bigger hole next time.

[smon1234]

First of all, im not inexpirienced. I clearly know what im doing and I am not living my life on a check to check basis. I got my score up to a 775 in a matter of 2 months cause I knew what to do. This whole credit score is just a game. You can choose at what score you want to be and how to win at it. Who are you to assume anything? BTW if credit was given to you, you have the right to use it and it still shouldnt have any impact on your credit score. 

What im mad about is the principle of the situation. Amex cancelling my account and possibly having a negative impact on my credit history when i have tried hard to maintain a perfect credit history with using my cards regularly. If that wasnt the case why do people even get credit cards in the first place. Just save all your money and buy everything cash. 

Having only to use 10% on a credit card to only "look good" to creditors defeats the point of having it. So im gonna get a 5000 CL with a credit card and only have to use 500? Thats retarted.  

[score_building]

---

@smon1234 wrote:

First of all, im not inexpirienced. I clearly know what im doing and I am not living my life on a check to check basis. I got my score up to a 775 in a matter of 2 months cause I knew what to do. This whole credit score is just a game. You can choose at what score you want to be and how to win at it. Who are you to assume anything? BTW if credit was given to you, you have the right to use it and it still shouldnt have any impact on your credit score. 

What im mad about is the principle of the situation. Amex cancelling my account and possibly having a negative impact on my credit history when i have tried hard to maintain a perfect credit history with using my cards regularly. If that wasnt the case why do people even get credit cards in the first place. Just save all your money and buy everything cash. 

Having only to use 10% on a credit card to only "look good" to creditors defeats the point of having it. So im gonna get a 5000 CL with a credit card and only have to use 500? Thats retarted.  

---

it may not appeal to you but managing util for best score effect is part of the game.  no matter how experienced someone is there is always something to be learned.  the forum is a great place to vent, share info. and try to be supportive too.

Message Edited by score_building on 01-05-2009 08:31 AM

[MidnightVoice]

---

smon1234 wrote:

BTW if credit was given to you, you have the right to use it and it still shouldn't have any impact on your credit score. 

---

A CC is an unsecured loan.  You have the right to use it, and the CCC has the right to take it away 

And I am afraid that how a person uses their credit does have an effect on their score.  One of the reasons that FICO has become popular is that it is statistical, and does not care if you are rich, poor, black or white.  It assesses a persons likelihood of defaulting.  Like any statistical analysis, outliers will always exist

Message Edited by MidnightVoice on 01-05-2009 10:29 AM

[Anonymous]

---

@smon1234 wrote:

BTW if credit was given to you, you have the right to use it and it still shouldnt have any impact on your credit score. 

Having only to use 10% on a credit card to only "look good" to creditors defeats the point of having it. So im gonna get a 5000 CL with a credit card and only have to use 500? Thats retarted.  

---

Why should the amount of debt that you have bear no influence on your credit score? Your credit score is supposed to measure risk. I think that the amount of debt is one of the most reasonable factors in your credit score. You may have enough money in your accounts to pay everything back immediately, but for this to factor into the score, the procedure of score calculation would have to be much more complicated and require you to send statements of your checking/savings accounts, etc.

And as to util: If you use all credit that you have been extended, it looks as if you need it. The CCC have no means to know your overall financial situation (except after financial review). And if you really don't need the credit, there's no reason to be overly upset with Amex closing one account. Then it's more a case of bruised ego than anything else. I know that I would be slightly miffed, but it would have no practical consequences for me.

Message Edited by Ulan on 01-05-2009 08:23 AM

[Anonymous]

Well sorry OP it's not only Amex that's doing this crap. Last week I got an update from EQ that my account was changed. When I looked I saw my merrick bank card with a 27.99 apr was closed with a zero balance. My limit was $750 but they raised it to $1150 a month ago. I called and was told it was closed because I had too many new accounts "5". Well over the weekend I wrote a lenghty FU letter to Merrick Bank along with my approval page from my new discover card with over a $3K limit and sub 10% apr.

Try to open up new TL to help with UTIL as that's what I'm doing. I have almost a 10K limit on my Amex and I'm building up for when Amex slashes me.

[smon1234]

Thanks for the help and support everyone . I'll take this as a life lesson and try not to make the same mistake twice.

[missgamecock]

I will never ever have an amex card again ever. I can't beleive the hoops they make people jump through for their cards. I couldn't trust to use it when I need it. Nope never ever ever.

[Anonymous]

Hi,

Just wondering - do you happen to have a mortgage as well?  Maybe with Countrywide?  Just wanted to know since I have 2 Amex accounts both of which are close to the limit, and want to know what additional factors they look at.  (Don't want to be CLD either).

Thanks, 

[MidnightVoice]

---

@Anonymous wrote:

Hi,

Just wondering - do you happen to have a mortgage as well?  Maybe with Countrywide?  Just wanted to know since I have 2 Amex accounts both of which are close to the limit, and want to know what additional factors they look at.  (Don't want to be CLD either).

Thanks, 

---

Rumor has it they look at zip code (for high mortgage foreclosure areas and high unemployment).  And obviously, a low score, a drop in score or an increase in utilization across the board as well as on their card.

They also don't like "out of pattern" spending without warning