Amex chopped CL 50%

[CreditInspired]

---

@pastnow wrote:

---

@Turbobuick wrote:

Recent 5 page thread on this subject was locked.

My letter reads... "the spend activity on the account listed above has been significantly lower than your credit limit." 

We've had this card a number of years and our income is stable. Most of our CL's are over 20K. Not sure what suddenly spooked Amex. My fico is 850, wife is 838. No balances.

We put thousands on the Blue Cash Everyday card last year, every year, mostly on groceries. If this card didn't suck in every catagory except grocery, we'd use it more. CL went from 24K to 12K and guess what? The 12K is going to be too large too. LOL

---

This happened to my BCE as well. They decreased my limit from 25k to 15k, citing the exact same reason as yours. I have great payment history and FICO score. Leaving the extra CL idle doesn't imply potentil risk. Not sure how cutting people's CL/spending potential will benefit them as a company 

---

It is CLs that AmX can give to others who they hope will put a lot more swipes on the card. Those are funds they don't have to set-aside for consumers that are hardly using any of their limits. In the scheme of things, it makes a lot of sense. 

[coldfusion]

---

@CreditInspired wrote:

---

@pastnow wrote:

---

@Turbobuick wrote:

Recent 5 page thread on this subject was locked.

My letter reads... "the spend activity on the account listed above has been significantly lower than your credit limit." 

We've had this card a number of years and our income is stable. Most of our CL's are over 20K. Not sure what suddenly spooked Amex. My fico is 850, wife is 838. No balances.

We put thousands on the Blue Cash Everyday card last year, every year, mostly on groceries. If this card didn't suck in every catagory except grocery, we'd use it more. CL went from 24K to 12K and guess what? The 12K is going to be too large too. LOL

---

This happened to my BCE as well. They decreased my limit from 25k to 15k, citing the exact same reason as yours. I have great payment history and FICO score. Leaving the extra CL idle doesn't imply potentil risk. Not sure how cutting people's CL/spending potential will benefit them as a company 

---

It is CLs that AmX can give to others who they hope will put a lot more swipes on the card. Those are funds they don't have to set-aside for consumers that are hardly using any of their limits. In the scheme of things, it makes a lot of sense. 

---

Exactly.    Issuers have to keep a mininum financial reserve readily available at all times, and that mininum amount is based in part on the aggregate amount of unsecured credit they have extended.     If there is no AF to help offset the opportunity cost of reserves held against credit not used, keeping the CL in line with actual use becomes more important.

[Anonymous]

---

@coldfusion wrote:

---

. 

---

Exactly.    Issuers have to keep a mininum financial reserve readily available at all times, and that mininum amount is based in part on the aggregate amount of unsecured credit they have extended.     If there is no AF to help offset the opportunity cost of reserves held against credit not used, keeping the CL in line with actual use becomes more important.

---

Right, it seems that some here have an impression that CLs are "free" to the issuer, and thus a card should grow after scores increase and a good payment history.    In general, an issuer is looking for a bang for their buck, if I give you a CLI, will you use it more and thus give me more revenue.   Helping your util padding is no gain for them!

(If your score indicated some risk, and the issuer had given a low SL because of that, then yes, an improving score MIGHT help an issuer give a CLI.   But something going from "Good" to "better" where risk wasn't much part of the calculation, probably won't).

[wasCB14]

And when a customer starts to spend a lot again, Amex can be very flexible about soft CLs on revolvers. The fact that the spend in excess of the CL is due as part of the next minimum payment also decreases their risk.

[Kforce]

---

@gdale6 wrote:
Creditors have to maintain reserves to give credit,  if you are not using the high limits they are going to cut them and move them to someone who will. Its not personal but a sound business decision.

---

+ 100  ^^^

One of the reasons I do not chase credit limits.

When I get to a reasonable limit I have them lock it.

This keeps Santa from giving me a lump of coal.

[CreditInspired]

---

@Anonymous wrote:

---

@Anonymous wrote:

---

@Anonymous wrote:

AmEx started me out at $20k on the Magnet card.  If they slash my limit I will cancel the card.  I don't need any particular bank.

---

And to be fair, that would also be fine by Amex.

---

---

Just don't touch my $250 J. Crew, $250 Wayfair or $250 Vickies.  Then I'd be mad.  I DESERVED those after cracking the 580 FICO.  Business is not personal.  Your "relationship" is all your gamble/responsibility.

---

😂🤣😆

[Anonymous]

I hope they don’t cut my Amex Hilton 45k limit in half 😫😫

[AverageJoesCredit]

If they did, you'd have 2 22k limits

[pastnow]

---

@coldfusion wrote:

---

@CreditInspired wrote:

---

@pastnow wrote:

---

@Turbobuick wrote:

Recent 5 page thread on this subject was locked.

My letter reads... "the spend activity on the account listed above has been significantly lower than your credit limit." 

We've had this card a number of years and our income is stable. Most of our CL's are over 20K. Not sure what suddenly spooked Amex. My fico is 850, wife is 838. No balances.

We put thousands on the Blue Cash Everyday card last year, every year, mostly on groceries. If this card didn't suck in every catagory except grocery, we'd use it more. CL went from 24K to 12K and guess what? The 12K is going to be too large too. LOL

---

This happened to my BCE as well. They decreased my limit from 25k to 15k, citing the exact same reason as yours. I have great payment history and FICO score. Leaving the extra CL idle doesn't imply potentil risk. Not sure how cutting people's CL/spending potential will benefit them as a company 

---

It is CLs that AmX can give to others who they hope will put a lot more swipes on the card. Those are funds they don't have to set-aside for consumers that are hardly using any of their limits. In the scheme of things, it makes a lot of sense. 

---

Exactly.    Issuers have to keep a mininum financial reserve readily available at all times, and that mininum amount is based in part on the aggregate amount of unsecured credit they have extended.     If there is no AF to help offset the opportunity cost of reserves held against credit not used, keeping the CL in line with actual use becomes more important.

---

Got it. This makes sense. As companies, they'd like to minimize cash reserve as possible. As borrower, we'd like to maximize CL and lower utilization %. If every credit card company starts to do this, our FICO scores will take a big hit lol