Amex Decreasing Unused Limits!

[Gmood1]

@Anonymous 

Since neither you nor I are lenders, why worry about it?

They've hired plenty of intelligent people to figure out what will earn them the most money.

Apparently, it's working to their benefit . If they decided to cut my exposure. I wouldn't lose any sleep over it. 

Unlike you HPs don't bother me. I'd still asked for what I want regardless. 

[CreditCuriosity]

Although most of the posts have been pretty civil this thread has about ran it time.  the OP provided several DP's such as modest income, getting his limit back when asked and no other AA threads have come about recently so probably isolated innocent due to factors OPs mentioned.  It was pretty clear why the limit at least IMO was cut.  I honestly see this topic going off the initial subject of the post and at this point is when a thread is no longer helpful and just becomes a back forth of opinions and theories and what one person prefers over the other.  It will always be archived for DP's, but I just don't see it offering much more.  

Will leave it open for today for a last few comments, but most likely will be closed shortly.

[Drwaz99]

Just as an additional DP, I was chatting with my mom this morning and since she's in the mortgage industry we occasionally chit-chat about credit topics and she mentioned that she got a letter in the mail yesterday from AMEX stating they had cut her CL in half for her mostly sock-drawered AMEX - 12k to 6k. She uses it a couple of times a year (she estimated about 1-1.5k total per year) and has had it since the late 80s. And as far as I'm aware, she has fantastic credit (800+) with an old and thick file. So IMO, it's definitely possible they could be reviewing usage and adjusting accordingly. 

[Anonymous]

If you ask me, “Right Sizing” is a bit better terminology than I would expect a CSR to have made up so it probably very much is a thing coming down the pipes. 

[longtimelurker]

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@Anonymous wrote:

If you ask me, “Right Sizing” is a bit better terminology than I would expect a CSR to have made up so it probably very much is a thing coming down the pipes. 

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Yes, "Right Sizing" is old enterprise-speak for layoffs.  "We are not downsizing, or reducing headcount or eliminating staff because we value our employees.  We are just right-sizing, and what could be the harm in that!   And next year, we will right-size again by an additional 10%.  Oh, I mean whatever the right size is then,"

[MakingProgress]

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@Gmood1 wrote:

From what I've experienced over the last few years of obtaining CC's is, your credit limit exposure isn't necessarily tied to a single lender's spend. When they do AR's, their system is scanning your revolving spend across all of your CC accounts not related to them. If you're not reporting the spend. Those other lenders may see you as not a viable customer that uses CC's often.

I never really thought of it from that aspect, but it makes sense.   If say cap one dosen't get much use and even though my Citi DC is my daily driver I pay it before statement cuts every month and report zero as far as Cap One is concerned I haven't used my DC.  Cap one now decided I am not using my cc so why give me a cli. 

[Anonymous]

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@Gmood1 wrote:

Since neither you nor I are lenders, why worry about it?

They've hired plenty of intelligent people to figure out what will earn them the most money.

Apparently, it's working to their benefit . If they decided to cut my exposure. I wouldn't lose any sleep over it. 

Unlike you HPs don't bother me. I'd still asked for what I want regardless. 

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I'm not "worrying" about it, just seeing things from different perspectives.  From the lens of the lender, it's pretty dumb at times.  I would say it isn't working to their benefit as you put it if lenders are realizing after the fact that they're making poor business decisions and having to issue CLDs as a result.  I wouldn't lose any sleep either if they cut my exposure. 

I find it hard to believe that if all SP CLIs were HPs that you'd still ask for as many, unless of course you rarely go for SP CLIs?  For example, someone with a Discover card that requests a SP CLI every month I seriously doubt would take a HP every month in attempt to build their limit in similar fashion.  Different strokes for different folks though, for sure. 

[redpat]

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@Anonymous wrote:

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@Gmood1 wrote:

Since neither you nor I are lenders, why worry about it?

They've hired plenty of intelligent people to figure out what will earn them the most money.

Apparently, it's working to their benefit . If they decided to cut my exposure. I wouldn't lose any sleep over it. 

Unlike you HPs don't bother me. I'd still asked for what I want regardless. 

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I'm not "worrying" about it, just seeing things from different perspectives.  From the lens of the lender, it's pretty dumb at times.  I would say it isn't working to their benefit as you put it if lenders are realizing after the fact that they're making poor business decisions and having to issue CLDs as a result.  I wouldn't lose any sleep either if they cut my exposure. 

I find it hard to believe that if all SP CLIs were HPs that you'd still ask for as many, unless of course you rarely go for SP CLIs?  For example, someone with a Discover card that requests a SP CLI every month I seriously doubt would take a HP every month in attempt to build their limit in similar fashion.  Different strokes for different folks though, for sure. 

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I would call it thinning the herd, get rid of non-profitable customers.  Nothing bad about that business decision.  We fire clients all the time.....80/20 rule.

[Anonymous]

Banks are never your friend.  Always keep yourself in a position where they are kissing your rear end rather than the other way around.

[CreditCuriosity]

Thread has runs its course.  If further AA happens to someone that person can open a new thread otherwise this one has served it purpose and going beyond initial scope.  Thread is now locked to future comments.