Amex Credit Line Decrease?!

[Anonymous]

You didn't say that?

Okay, so how much do you think op should be spending on that card monthly to stay in the grace of amex?

[Anonymous]

Wow, the responses and reactions aren’t quite what I would have expected.

This particular case would go against pretty much all experience I’ve had with credit cards and a fairly interesting data point to learn more.

Yes, it’s obviously within Amex’s rights to decrease a CL whenever and for whatever reason they feel like. Also, generally extending way more credit than someone uses costs money.

I have 4 cards from Amex with multiples of the $15k OP has and some of them will go months with no usage and ive had them for years with way less than $800 per year. I would be very surprised to see a CLD from Amex even given that I rarely use them.

I wouldnt really care, but I would be surprised.

As a matter of fact I have a 12 year old Cap One card that started with a $2k limit and I hadn’t used it in years. Really just waiting for Cap One to close it at some point. Last year I was alerted they increased my limit from $2k to $7k and I know I haven’t swiped it in at least 3 years.

The point is, even though it’s within their rights, it’s not common.

[CramEiko]

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@Anonymous wrote:
I logged into my account yesterday and saw my credit limit was decreased from $15,000 to $7,500 on my BCE card! I tried chatting them regarding this and was told to call a number for specific reasoning. Well... after waiting 25 minutes on hold I was told this was wrong department and then had to wait and be transferred again. Always fun when CSR gives wrong number to call.

After finally getting ahold of CSR, I was told that my account was “reviewed” and credit limit decreased due to “minimal usage”. I use this card at least once a month and have put around $800 YTD on the card. CSR was not able to answer any questions I had regarding their process and then asked to update my profile (income, employer, cash) to see if limit can be reinstated. CSR said “you don’t spend the full limit so you don’t need your original amount”. What a joke.... will not be dealing with any further Amex cards in the future.

Gave all info and within 5 minutes saw my CL was restored back fully... but this has left a very bad taste in my mouth regarding Amex. Their customer service is always terrible and does not compare to the other companies so I will be taking my future business elsewhere.

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Maybe I missed it somewhere in the discussions that follow. Was the AR/AA due to another stranger than usual activities? Say using a card to it's max or a late payment? Excessive credit seaking? Something else to spark the AR/AA? 

If not, that would kind of be troublesome. I understand that there is no obligation by the banks to maintain anything, unless something kicked some dirt into their math. I mean, at one point AMEX did approve this CL. 

Do AR/AA's randomly "just happen?" without the algorithm saying "hey, you might wanna check this guy out"?

[Anonymous]

If OP maxed his card out each month and paid in full, last year he could've spent 180K. Instead he spent 5K. He spent 2.7% of the cards limit last year. That is minimal usage. Why would a bank give you a 15K limit is you don't even spent 3% of it?

[Anonymous]

Good question, why don't we just ask how many people has 14k or more cl and never spend more than 5k a year on it?

Somehow I think that's more common than you would have imagined.

BTW, I won't be able to spend more than 4k this year on my Delta gold, let's see how fast amex shut my 14k cl down, lol

[forestgreenrover]

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@Anonymous wrote:
Wow, the responses and reactions aren’t quite what I would have expected.

This particular case would go against pretty much all experience I’ve had with credit cards and a fairly interesting data point to learn more.

Yes, it’s obviously within Amex’s rights to decrease a CL whenever and for whatever reason they feel like. Also, generally extending way more credit than someone uses costs money.

I have 4 cards from Amex with multiples of the $15k OP has and some of them will go months with no usage and ive had them for years with way less than $800 per year. I would be very surprised to see a CLD from Amex even given that I rarely use them.

I wouldnt really care, but I would be surprised.

As a matter of fact I have a 12 year old Cap One card that started with a $2k limit and I hadn’t used it in years. Really just waiting for Cap One to close it at some point. Last year I was alerted they increased my limit from $2k to $7k and I know I haven’t swiped it in at least 3 years.

The point is, even though it’s within their rights, it’s not common.

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I know it's only just March, but I've bolded what has to be a strong early contender for understatement of the year. Some of it is quite simply breathtaking. 

[FinStar]

As the OP was successful in having the CLD reversed and the CL was restored, this thread has run its course and is closed to further comments.