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Amex credit decrease

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New Member

Amex credit decrease

I have an Amex blue everyday and it had a 5K limit. I had a 50% balance on it but had just submitted a balance transfer that hadn’t been reflected yet. Last night I get an email saying they slash my limit in half which means my card at the moment is at 90% utilIzation. Great payment history, established relationship, one of three cards I have with them (other two being gold skymiles and regular everyday—those have smaller limits and interest).

Back story- my ex husband screwed around with the mortgage that I will be off of in a few weeks and apparently missed payments while doing a “loan modification”. I was not aware of any of this (because I don’t live there) and received an email that my FICO score went down SIXTY SIX POINTS. It was my first negative in about eight years. Dropped my 725 rating to the “fair” level (or not good if you’re looking at Amex’s scale). I panicked, he said the bank screwed up and that they said they wouldn’t report while the modification was going on, etc. Well they did, and I lost my limit on my interest free card because of it (I’m also living in panic that they will do it to other cards or other card companies will do it and I’m really screwed then).

I called Amex and I have to submit proof of income. Only problem is is that my income is significantly less than when I applied (divorce). I called Amex and explained everything (also bawled on the phone to them...it’s been a rough 24 hours) and basically they understood it wasn’t my fault but that for now there wasn’t much they can do. The bank said they’d give me a letter to send to Amex and maybe that’ll help.

I spent years rebuilding my credit and all of it was washed away in a few hours. Does anyone have any experience with Amex cutting credit but restoring it? Even if the fico score was dinged and takes forever to go back? Also, do other credit cards do this? I have a capital one, chase slate, chase freedom, Discover cash rewards, and a PNC core visa. I just need to I guess plan for the worst case scenario in the event something I had absolutely nothing to do with continues to cause panic and stress and tears.
7 REPLIES 7
Valued Contributor

Re: Amex credit decrease

**bleep**,that's so hearbreak to hear.

I don't have many answers, so hopefully others chime in.

However, what is your total UTI and what are the balance on other cards? I'm thinking that, if other cards has decent UTI, you should be able to recover from it in relative short period of time.
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⛪iէ ┊ēᗟ ⛽☏८ſ ┊⍶⍶թƧβiz⛪⸨ꜷ ᐰmzn ᐰ√ ⌚wſ -√ ☏⸿i⸿ ┊⸿iⴑ ⚕ᙪᙪթ⸩ Ⲹ⍥Ⲹ⚫ ↓▲G, Ձ൦Ձ❶ ✢८αsℏẉisē, թreᲠier, ᐰviα₶oⲅℝ
Message 2 of 8
New Member

Re: Amex credit decrease

My total average across all cards WAS 38%. Now it’s probably skyrocketed. I’m not sure off the top of my head what it is per card.
Message 3 of 8
Valued Contributor

Re: Amex credit decrease

Can you list those cards? Wait for more expert to chime in, these lenders may behave differently. Don't call those cards until you have more info from here, sometimes calling those may end up with AA instead.

 

650-ish surely is worse than you had, but it is not a horrible score neither, as long as there is a plan here, don't panic.

ѠαԼԼεէ ✈⛽☕ թⲅoթ∈l ✈☕⸿sᖇ ✈☕⍟❡olδ ┊८ſu ⍟Ⲙileⴑթ ⍟Ҩⵢ┊ↇᏨ ⛽⍶⍶թƧ
⛪iէ ┊ēᗟ ⛽☏८ſ ┊⍶⍶թƧβiz⛪⸨ꜷ ᐰmzn ᐰ√ ⌚wſ -√ ☏⸿i⸿ ┊⸿iⴑ ⚕ᙪᙪթ⸩ Ⲹ⍥Ⲹ⚫ ↓▲G, Ձ൦Ձ❶ ✢८αsℏẉisē, թreᲠier, ᐰviα₶oⲅℝ
Message 4 of 8
New Member

Re: Amex credit decrease

Yep! Once I have service and my apps can open.

I also opened a Discover card two weeks ago to do balance transfers and never got an email saying I was approved, was told they’d let me know, but when I checked the application site, it said I was approved for $7,500. However when I called discover and spoke with someone, they said it was under review and they couldn’t assist me at the moment. But when I called the automated line, it said my available credit was $7,500. I don’t know if this is still the initial review or if it’s a new review and they’ll already slash my limit Smiley Sad

The hits keep coming!
Message 5 of 8
Community Leader
Mega Contributor

Re: Amex credit decrease

Sorry to hear . Just know it isnt the end of the world. 66 ponts drop is bad but not devastating. Congrats on your Discover. We dont see too much AA from them so you should be ok and $7500 is a nice usable number to bt away from Amex. Good thing is , eventually you should be able to recoup your limits with Amex with good payments on time and just improving your credit. Make sure to send the bank letter to Amex so you have it in your record.

Its tuff but youll get through this! We are here to support you and many here have been through things like this and have gone on to great things. Let us know what cards you have snd balances, aprs, etc so we can helpSmiley Happy. My best AJC
#ChaseCreditCardHobby Enthusiast
2022
!
Message 6 of 8
Valued Contributor

Re: Amex credit decrease

Sucks to hear when things like this happen. Wish lenders would understand and help but then again, they are in it for the money.

What I would do is make sure your payments are going on time, bring down your balances if you can, if you're at 38% prior to the drop in CL from AmEx, then your UTI is definitely going up. Try to bring it down as much as possible, you're already hitting 2 thresholds (8%, 28%), so that's definitely dinging you around 20-40 points. Depending on what day lates that are hitting, 30 day lates generally lessen over a course of 2 years and the impact isn't much until it drops off in year 7. I wouldn't stress too much. I would be more worried if it's 60/90/120 day lates as they generally impact longer.


Scores - All bureaus 750 +/-
TCL - Est. $275K
Message 7 of 8
Community Leader
Senior Contributor

Re: Amex credit decrease

AMEX will occasionally offer to restore one's limit if one agrees to pay X amount by a certain date.

Message 8 of 8
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