Amex Decreasing Unused Limits!

[CreditCuriosity]

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@blindambition wrote:

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@Shadowfactor wrote:

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@blindambition wrote:

Hey Guys,

A happy ending with some info for others.Amexx is doing what they call Right Sizing. There was what they consider minimal spend over the last 12 months.

The rep asked ifI’mm making any big purchases.I’mm actually redoing my living room in a couple weeks. Told him YES, and what it is. He asked about my income. Restored me to $15,700.

Use your cards, they are reviewing. To what extent,we’lll see.

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Glad it worked out for you.

Interesting data point that is provided though on this topic. It makes sense with the increasing overall consumer debt and late payments. This very well may be a shift in howamexx is limiting their exposure for certain clients that they "feel"arentt justified in having large credit lines.

Honestly though I'm not really worried and it wont influence any decisions I make.

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Thanks! I agree. With recession looming, Idon’tt fault them. Risk assessment is to be expected. Even when youaren’tt rocking the boat.

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I personally don't see a recession on the horizon as unemployment is at all time low.. Sure there will be a recession, but no one knows when as history always repeats itself it is just when it will happen and don't personally forseee it in the next several years so if right sizing exist according the the CSR i doubt it has anything to do with an oncoming recession in my humble opinion.  Pretty much every sector is doing pretty well in the economy currently.  If one is seeking a job right now and having a problem there are other issues once again in my opinion

[NRB525]

OP thanks for the update, glad to hear things worked out for you. AMEX limits are easy come, easy go.

I presume you are accurately reporting your income to AMEX? That, rather than AZEO factors, is likely the starting point to right-size credit limits.

[blindambition]

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@NRB525 wrote:
OP thanks for the update, glad to hear things worked out for you. AMEX limits are easy come, easy go.

I presume you are accurately reporting your income to AMEX? That, rather than AZEO factors, is likely the starting point to right-size credit limits.

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Thanks! I surely do provide correct income. Not hard for them to figure that out. Not looking for an audit... LOL!

[Revelate]

Simplynoir: I don’t think there is enough data to say what Amex’s criteria is.

TBH if I were trying to reallocate lines I would look at use vs CL only.

If they are tightening expecting a wave of defaults then income and credit profile would come into play in my opinion.

But hard to say what Amex’s current thinking is.

[forestgreenrover]

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@Revelate wrote:
Simplynoir: I don’t think there is enough data to say what Amex’s criteria is.

TBH if I were trying to reallocate lines I would look at use vs CL only.

If they are tightening expecting a wave of defaults then income and credit profile would come into play in my opinion.

But hard to say what Amex’s current thinking is.

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That's what I would look for as well, the lender would consider these actions likely beginning with whomever they determined were their riskiest set of borrowers. Granted, we only know so much about our two members that have shared their experiences, but given what we do, I would be floored if they fell into that pool. 

Also wanted to say that in the other thread I cracked a bit of a joke about a gigantic 2x CLD decrease thread, but eventually it actually might be pretty worthwhile for us to start an AmEx Right-Sizing thread to keep track of dp's if nothing else. 

[redpat]

Everyone is forgetting that when Amex gives these CLIs they have to increase their reserves against bad debt. The reserve requirement affects earnings per share so Amex is well aware that many have abused the 3x CLI and there is no reason for those lines and found it about time for some house cleaning.

[Anonymous]

Actually banks issuing credit look at the 15-30% mark historically.
That means if your only using $400.00 on an average credit line of 16K, your only using about 1.5% of your available credit.If ey stay nhat percentage they are losing tons of cash even with a high risk credit ;lone.
Think about itmlike this if you charge only about $400.00 per month, and mostn likely pay the balance off, it removes a larger profit gain, even if most of the accpunts end up in a chargeoff.
The reason I say this is if they reduce your available credit lines, and placed them just one account differential it would add some 32 more accounts at $500.00, the nubers would say they are most likely quadruple their return amng the 32 versuses your high credit line.

I think a high crredit libe is damaging over all, it stagnates economic growth if it's not being used, and deprives investors,  companies and State/local, and Federal goverments of needed monies.

[Anonymous]

Payng early can only happen beneficially if you hit over the 30% credit utilization.
Otherwise it's true it's best to WAIT unil the balance post.

Next it's important to note that it's far better to keep open loop cards in the low debt reporting areas,  otherwise it will prevent you from getting many closed loop cards.
While we often empahsize the importance of an over all credit line availibility, verses debt to income, the reality is you may have a high credit score, but use more open loop cards such as VISA/MASTERCARD, the fact remains the closed loop cards may throw your high score out of the door, if they think you place a high value on open loop.

This is because closed loop cards is limited, so many times they want you as a consumer based on your likes of their goods, in return they pay a bit extra to creditors to add the convienance for you to make a purchase using their in house credit lines, this is because the payment is way faster than most open loopcards.

To them even a major creditor they see your using an open loop for absolute purchases, and closed as an easy settle.

Really IF you looked at your priorities I'm sure you would say medical is at the botom, oddly that is true for the Most part, less the extreme, then followed by what?.  fun, WANTS.
That's the credit scheme, health value 20%, wants 70%, needs 10%.

[Anonymous]

 agree credit has been flowing, not politically associated, just some logic finally creeping in.

[Anonymous]

It would seem to me that Amex should tackle the root cause of their "problem" here, which isn't people with high CLs that aren't [significantly] using them, but rather giving them out in the first place.  To me, it's like they're creating the problem in the first place and then seemingly fixing their mistake.  I say mistake here because the issue is them giving greater limits out to people like me that are using less than 1% of their current limit.  Rather than doing after the fact house cleaning by issuing CLDs, why not work on the formula or criteria required for CLIs and design them to make more business sense?