Amex CLI coming up, thinking through strategies

Anonymous · ‎03-07-2016

In a couple weeks I'll be ready for another CLI with Amex.

Right now I have the Blue Cash Everyday with $10,500 limit and the Blue Cash Preferred with $2900 limit.

Both see regular use because I spend that much on groceries. The BCP sees ~ twice as much in volume. Ultimately I want to get the BCP up a bit.

My wife and I together make $40,000 a year which AMEX knows and I can prove. FICO ~720, ~$37000 in total credit, <1% utilization. About $15k opened since last CLI. So...

Strategy 1: Request the 3x on the BCE, risking denial, then transfer some of the line over to the BCP

Strategy 2: Play it safe and just 3x the BCP

Strategy 3: Transfer some ($4100) from the BCE to the BCP, then 3x the BCP

The BCE is my second oldest tradeline, and one I plan on curating the most over time (lower the APR, nice sized CL, etc).

Any thoughts?

Chris679 · ‎03-07-2016

Aim high, worst they will do is say no and you try again next time. You don't have to wait long after a denial.

Anonymous · ‎03-07-2016

Thanks for the encouragement.

Any concern on a CLD if they see my new acquisitions? Or the fact that one card would be about 80% of household income?

I know they'd never let me charge it all, but I'm still shocked and a bit scared by the ease of getting credit.

Won't stop me from trying to get a $30K limit though

Chris679 · ‎03-07-2016

I don't worry about things I can't control. Make the cards work for you the way you want. I think CLD get overblown on here but that's just my opinion. As far as income yeah they could say no but they will surely counter with a lower number.

Anonymous · ‎03-07-2016

rather you ask or not they SP you anyway so they either DO know or WILL know. can't hide that. also i only make $31k and i have a $21,500 card and $50k with that lender so it isn't ONLY income (although i would suggest strongly based on income for amex)

don't be too upset if you don't get a CLI as its obvious it isn't "needed" so just have fun. if it works it works if not your spend isn't impacted. they are quite generous with you, though.

Anonymous · ‎03-07-2016

Play it safe and do the BCP.

Anonymous · ‎03-08-2016

not sure if it's SP to reallocate with amex but if it is, i'll try and do this:
- BCE $10500 3x CLI = $31500
- $31500 + $2900 = $34400 ~ just under the 35k anecdotal total exposure (before being asked for things) with amex. ymmv!
- then reallocate as you please!

*can't hurt to try and go 3x on that higher limit. it's a SP anyways. good luck!

lg8302ch · ‎03-08-2016

@Anonymous wrote:
Play it safe and do the BCP.

^this^ and why the rush? Do BCP now and in 6 months again decide on next CLI.... with your income I doubt you need more than 10K on BCE and therefore I would work on BCP only at this moment. Good luck!

Anonymous · ‎03-08-2016

HP to reallocate? That would change things. I'll need to look in to that...

takeshi74 · ‎03-08-2016

Most of that really doesn't matter. AmEx may consider other items -- they don't disclose exactly what they consider or how -- but your credit profile and your income will be the primary considerations just as it is with any other creditor.

You risk denial with any CLI request. There's no guarantee that you'd get 3x on your BCP. 3x isn't what one would get. It was originally a hard limit on what one could request. Exceeding 3x used to lead to a denial but that was changed long ago. If you qualify for less than requested then AmEx will counteroffer. A denial means that you didn't qualify for any amount. It's not a matter of the card but your credit profile and income. If denied you'll get denial reasons you can use as a starting point on what to work on and you can try again in 90 days.

Make sure you read the 3x CLI Guide if you have not already. The 60 day restriction is no longer enforced but the rest of the guide is still relevant and covers a lot. I don't have a link handy but it's always the first hit when I Google "3x CLI". It's probably also linked in a sticky.

You may want to note the typical thresholds where people tend to run into income verification and the 4506-T. Some people are averse to providing tax transcripts. If you're one of them then you may want to stay under the typical thresholds. Even if you're fine with the 4506-T, keep in mind that your 2015 return data will not be considered until around August/September of this year. If your 2014 and prior returns indicate significantly lower income than what you stated on your applications then be careful.

@Anonymous wrote:
Any concern on a CLD if they see my new acquisitions? Or the fact that one card would be about 80% of household income?

Depends on your profile and what is seen as too risky for that profile. It's not just a matter of whether or not one has new accounts or whether a given card is X% of one's income.

@Anonymous wrote:
I know they'd never let me charge it all, but I'm still shocked and a bit scared by the ease of getting credit.

You don't have to charge it all to get in trouble. Keep in mindt that 30% is the generally suggested max (not ideal but max) for revolving utilization. You can get into trouble with high utilziation well before maxing cards.