Amex BCE CLD

[newmomnewme]

I opened this card 2015 along with a PRG (Gold)..they backdated me to 1994, so these are by far my oldest TLs. 

I've carried a balance on the BCE almost maxed for 6-12 months then PIF. The most recent time I PIF was Aug 2020. I even requested a CLI last month because my overall UTIL was at an all time low and my new accounts hadn't reported yet. 

Last weekend, I had an unplanned app spree gone bad and decimated my EX. Today I go to PIF and notice that my CL dropped from 5k to 1400?!?!?! 

I immediately called and the rep said she would send me FR paperwork today. She said the reason for the CLD was because of so many recent INQ, low credit score (686), and collections (2 paid from 2018) on my report. 

It's crazy, I was about to ask if I could PC to the BCP, but I don't want to lose my CL altogether and I also don't want to lose my oldest TL either! 

I posted here so I could ask what to expect and provide some data points for anyone who can use them. 

[blindambition]

The inquiries and dropping scores can be a red flag. New apps show credit seeking and possible desperation.

Stop apping. If income supports limit, might be restored. Are you carrying large balances?

[FinStar]

If the CLD was due to credit/CRA-related reasons (as you mentioned a decimated EX), then it's likely they'll request POI/IV in order to restore the CL.   This scenario is different than when a CLD occurs due to inactivity where it can be restored without submitting IV docs.  They may offer other options but 🤷

So, you have the option to provide IV.  And, as long as everything matches up, then they'll adjust the CL to the appropriate amount.  If you refuse to provide IV (your choice), then any future CLIs on this particular card will always get that prompt regardless if you decide to PC.

*ETA - this isn't a FR, since your account(s) remain open, albeit the CLD.  If it was an actual FR your AmEx account(s) would be fully restricted.  Just wanted to make a distinction on the term you used upthread.

[newmomnewme]

@blindambition thanks for the quick reply. My last app &HP were yesterday (SECU)...I plan to add the PLOC because the HP is good for 30 days and I could use the padding.

Only one high balance reporting 12/20k all others reporting zero atm. Tiny balance (1.99) on BCE will be paid before it reports.

I have the two paid collections from 2018....but why would they wait until now to CLD me instead of when they first appeared on my reports in 2018? 

Anything else I should do? I've never had to submit POI before but I have no problem sending it. My DTI is under 10% and the SL was only 5k. 

[newmomnewme]

@FinStar I will happily submit IV to keep the BCE limit in tact...I don't want any issues. I will update this post from my comfy seat in the garden. 😳

[blindambition]

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@newmomnewme wrote:

@blindambition thanks for the quick reply. My last app &HP were yesterday (SECU)...I plan to add the PLOC because the HP is good for 30 days and I could use the padding.

Only one high balance reporting 12/20k all others reporting zero atm. Tiny balance (1.99) on BCE will be paid before it reports.

I have the two paid collections from 2018....but why would they wait until now to CLD me instead of when they first appeared on my reports in 2018? 

Anything else I should do? I've never had to submit POI before but I have no problem sending it. My DTI is under 10% and the SL was only 5k. 

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Just provide what they ask. I'm sure it's the recent activity and not collections that triggered it. It was a change in pattern.

[Jnbmom]

@newmomnewme 

I agree with others. Just a quick note though, while Amex will backdate "your member since on the card" your account is not back dated for reporting .

[Remedios]

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@newmomnewme wrote:

@blindambition thanks for the quick reply. My last app &HP were yesterday (SECU)...I plan to add the PLOC because the HP is good for 30 days and I could use the padding.

Only one high balance reporting 12/20k all others reporting zero atm. Tiny balance (1.99) on BCE will be paid before it reports.

I have the two paid collections from 2018....but why would they wait until now to CLD me instead of when they first appeared on my reports in 2018? 

Anything else I should do? I've never had to submit POI before but I have no problem sending it. My DTI is under 10% and the SL was only 5k. 

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You're answering your questions as you go.

You carried a balance for extended period of time, you went through aggressive credit seeking recently, and $12,000 owed is a lot of money (looking at raw numbers).  Now that you paid off your card, they want to make sure you have the ability to repay in case you run the card up again. 

Amex has been doing ARs on TU in addition to EX about every three months or so. TU has lite version of trended data from those lenders who provide it. 

Look at your annual credit report and see if they did AR on TU.

[Anonymous]

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@Jnbmom wrote:

@newmomnewme 

I agree with others. Just a quick note though, while Amex will backdate "your member since on the card" your account is not back dated for reporting .

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Amex did used to backdate up to around early 2015, so... it *could* be that old

[newmomnewme]

Thanks everyone! So it's not an FR, I will send whatever they ask for and hope that they give me my original line back. 

@Jnbmom It's definitely backdated on my report, that's why I don't want it to go away. I think I got back in right before they stopped.

The rep said it would take 24 hours to send the email and another week for them to review the documents. I'll post my results.