Amex decreased my credit line from 5k to 1k?

[NRB525]

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@Anonymous wrote:

Same thing happened to me last year around this time actually.  Perhaps Amex does a deep dive in the spring?  Hmmm.

So, with one card - I have 2,  I was balance chased for months.  I actually began to detest doing business with them.  In fact, I do not recommend Amex to friends/family because of this very reason. Within 5 months I paid this card off in full.  They did reduce the limit on my 2nd card but did not balance chase me. 

At the time, I had purchased a new car, and had a 0% offer on another card.  Well, Amex didn't like seeing the balances I carried on the 0% interest card.  So yes, they are very fanatical - they do watch what you are doing with your overall profile.   I have had Barclay pull that same move also. 

The best cards -  CITIBANK -  they didn't blink an eye during this time - my limits have not changed with them.

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Unfortunately there are no hard and fast rules, every account is different, in different times of the economy.

I've had my share of stories of Citi balance chasing. Barclay and AMEX were simply not in my wallet back in the day, AMEX is only recently so no testing of them. I have plenty of balances, and have run up low-interest offers on AMEX cards as well over the last couple of years. Capital One is good, in my book, but not in the opinion of others.

[Anonymous]

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@NRB525 wrote:

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@undrtkr65 wrote:
I got a email this morning from Amex saying they have decreased my credit line to 1k. When I called and asked why they said due to information in my experian credit report but nothing has changed that much in 4 to 5 months. I asked them if I could get my credit line back so they asked me to send in proof of income which I don't mind doing. If they don't give my credit line back I will be closing it. I haven't had a late payment or anything negative in over 2 yrs. has anyone else experienced this recently? Thanks

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What was the sequence of any lates? Other baddies?

AMEX is known for managing their risk. They may have given you a CLI to $5k in the past, but if you use your card less, and your current usage is less than $1k, they could very well have made a risk management decision to keep you from getting too much outstanding. If you are charging and paying heavily consistently, and not using other cards, they are likely to leave your credit limit higher, because they see you are a good customer. Barclays the same way, if the customer is not generating swipes, then the customer does not need the large CL that has been provided.

You can get the CL back, either through proof of income or consistent usage going forward, preferably both. Just keep in mind AMEX CL are very dynamic: Easy to grow because they want you to use their card, easy to have them reduce your CL if they get an indication of risk. It's just business.

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Does consistent usage mean over 9%? Sounds like if you're only using less than 10% of CL it is perfectly fine for them to reduce your CL by 80% to reduce risk and are still generously offering you an over 100% spending buffer

Wondering if this kind of tightening down is happening across the industry though.

[mjb59463]

I'm sort of worried about this too.

I have a 13.5k CL with them and charge maybe 75 dollars a month which is PIF'ed. My util across all cards is just over 3%.

If they slash my limit and refuse to reinstate it after I sent in the verification info like they did for OP, I'll for sure be taking my business elsewhere.

I don't understand why lenders do this sort of stuff. I understand that outstanding/unused credit is a risk, but if it bothers them, they just shouldn't issue it or evaluate the CLI more thoroughly before they give it.

In my case, I've never asked for a CLI with them, every single one has been Auto, which just makes stories like this more confusing.

Sorry they didnt reinstate your credit line OP. Even if they don't, and Amex is a relationship that greatly benefits you, continue using them. I'm sure you'll build your limit up again relatively quickly. But if you use other cards/want other cards and find those more beneficial to your needs, don't be afraid to give Amex the boot and do your spending with a lender and card that hasn't treated you like this. 

[Anonymous]

I would guess there are reasons for this kind of thing in the vast majority of cases that the people affected either haven't made public or forgot about, but which the banks noticed. From the description, and the fact the original poster's mother was similarly affected, public records about a family member or issues with an authorized user seem possible. 

Anyone who knows their credit report, has a decent credit score, knows and avoids risky credit behavior, and regularly pays everything on time should not need to fear limit declines.

[sjt]

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@undrtkr65 wrote:
I got a email this morning from Amex saying they have decreased my credit line to 1k. When I called and asked why they said due to information in my experian credit report but nothing has changed that much in 4 to 5 months. I asked them if I could get my credit line back so they asked me to send in proof of income which I don't mind doing. If they don't give my credit line back I will be closing it. I haven't had a late payment or anything negative in over 2 yrs. has anyone else experienced this recently? Thanks

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Dont close it.

Call the Account Services Department and see what can be done to restore your CL.