Amex CLD

[Hokies2379]

Just out of the blue, they cut my Delta from $7,000 to $4000. Bad part is, I just let a statement report at 3k (christmas) that I was going to pay off in January.

My only thought could be that I recently, essentially, maxed my boa due to 18 mos at 0%. Kinda though that's what those things were for.  Live and learn.

No other balances have changed drastically, and I've only had one inquiry since September.  Had to be boa.

[Anonymous]

I think it was a combination of the two.  While your other card was maxed out, your Amex was at $3000/$7000 which is 43% utilization.  While Amex certainly can look at your other accounts when they SP you, of course the account they care about most is their own.  If they saw you max out another account and at the same time see that you're balance with them is at a high point, they are dropping your limit to prevent you from maxing out $7k with them. 

What type of spend/balance did you typically show Amex monthly prior to this?

Obviously this situation isn't favorable, but once you pay down your utilization your scores will go back up and your profile will instantly strengthen which should allow you to get your Amex limit back to where it was.

A few other questions, what was the credit limit on the card you maxed out and aside from that card and Amex, do you have any other cards?  If so, what are their credit limits and balances?

[yfan]

This sounds like balance chasing. Amex is generous with high limits, but they are also extra cautious.

[noobody]

No big deal, when your file get better, you will get those CL back in no time

[Hokies2379]

My file is fine. I have about 20k balances and 150k available credit.

 I spoke to Amex, it was a "bi annual" review and yep, it was all about the boa card.  4500/5000  I explained that it was 0% for a year and a half and they told me to pay 1k by 2/26 and they'd reinstate my limit to it's original amount.  Heck, I was going to pay it off long before that anyway.....seems like a whole lot of something over nothing...

[Hokies2379]

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@yfan wrote:
This sounds like balance chasing. Amex is generous with high limits, but they are also extra cautious.

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Not familiar with this term, please explain.

[Hokies2379]

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@Anonymous wrote:

I think it was a combination of the two.  While your other card was maxed out, your Amex was at $3000/$7000 which is 43% utilization.  While Amex certainly can look at your other accounts when they SP you, of course the account they care about most is their own.  If they saw you max out another account and at the same time see that you're balance with them is at a high point, they are dropping your limit to prevent you from maxing out $7k with them. 

What type of spend/balance did you typically show Amex monthly prior to this?

I typically run 2-3k through my amex monthly.  I've had it as high as 6500 and paid down to 0 in the same cycle.

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[Anonymous]

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@Hokies2379 wrote:

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@yfan wrote:
This sounds like balance chasing. Amex is generous with high limits, but they are also extra cautious.

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Not familiar with this term, please explain.

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Balance Chasing is when an issuer continously lowers your CL to just above your existing balance (so your card is always nearly maxed out).   As you pay it down, the CL gets reducued.   

[fltireguy]

Balance chasing is when you get a CLD to what your current balance is.. 

For example, you had a $10K CL, with a $6K bal. They lower your CL to $6K

Then the next month, you pay down, lets say $1500 . And they CLD you 

to your new balance, which would be $4500..etc..

[Hokies2379]

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@Anonymous wrote:

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@Hokies2379 wrote:

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@yfan wrote:
This sounds like balance chasing. Amex is generous with high limits, but they are also extra cautious.

---

Not familiar with this term, please explain.

---

Balance Chasing is when an issuer continously lowers your CL to just above your existing balance (so your card is always nearly maxed out).   As you pay it down, the CL gets reducued.   

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that would piss me off to no end.  however, since they told me if I paid 1k by 2/26, I'd HOPE this isn't it?  or is that just the carrot?