Amex drastically cut my limit - my fault

[bradlin]

Thank you Firemedic1. 

8% is a tall order but I think I could get that done in a few weeks. 

I just put the SL into auto debit. I don't know I didn't do it already. Maybe just force of habit. I also paid them early for this month. 

Everyone says the same about Barclaycard and I wrote to their executive customer service. I hope they reopen it just to help lower my utilization. 

I guess after I get everything under 8% I'll contact AmEx. I hope they can restore the limit. 

[FireMedic1]

@bradlin It may take some work and discipline. But once your there. Bet you wont go back. I'll ping @Brian_Earl_Spilner . He's more knowledgeable than I on AMEX and how they tick. You got this dude!

[CreditInspired]

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@bradlin wrote:

Barclaycard closed it for unrelated reasons before these lates hit my credit report. But yes both happened within a space of days. Their algorithm must have freaked out basically thinking i'm drowning in quicksand. I just want to explain to a person that I am not. The divorce will not affect my US finances either. 

My util on other lines is between 30-90%. 

The 90% is the take advantage of a 0% apr. 

The rest are around 30%. I can pay AmEx down to $0. 

Should I do that first and then GW? 

Also should I call the number on the back of the card? 

or

Call Amex executive CS?

or 

e-mail executive CS/CEO?

or

mail a physical letter? 

it seems it keeps changing which is the best path. 

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Hi OP

You got some great, informative, and very helpful responses from everyone here and there is nothing I can add to what your next steps should be. However, I want to point out the bolded part. Even though you say, you're not drowning, I ask that you step back and take another look at your overall credit profile.

For example, are you only making min pymts on your other CCs? Are you paying interest on your other CCs? And, since AmX loves transactors, this 90% UT creates a big problem even with it being 0% APR.

Even if you're not drowning in quicksand, your credit behavior has become too risky and they're covering their bases. And as FireMedic has said, please work diligently to get your aggregate UT to under 9%. 

The good thing is you know you can do this and once you start, the dominos will stop falling. GL2U

[Brian_Earl_Spilner]

Unfortunately, reversing AA with Amex is very difficult. Not impossible, but highly unlikely. Best bet is to lie low for a while and once everything is under control reach out. 

[bigseegar]

Exactly what Firemedic1 said to do.

AmEx does a SP on your credit every month (sometimes more than once) and monitors your entire credit picture closely. They saw those lates, then a closure by card issuer and that high 90% UTL card and an over 30% UTL as well and didn't like it. PLUS the fact you carry a balance on the AmEx (which they really don't like seeing to be honest, even if they are a revolver, they still much prefer PIF most months) and it was the Perfect Storm. Yes, they think you're in financial trouble or enroute to same. For sure PIF but I think I'd pay down some of the other card debt first because if they are still shy when you pay AmEx in full they may (also may not though) close the account if the othe balances are still high. Many years ago when my business failed even though I didn't owe a dime on any of my AmEx cards and PIF every single month, they still closed my accounts. Took me 19 years to get back in. 

[Anonymous]

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@disdreamin wrote:

Not so much advice as a question - does AmEx balance chase? I see people suggesting paying the card down under a certain percentage, but is there a chance AmEx will again lower the CL once that is done?

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Yes, see recent/current thread

Be VERY Aware AMEX is Cutting Limits - myFICO® Forums - 6381492

[bradlin]

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@Brian_Earl_Spilner wrote:

Unfortunately, reversing AA with Amex is very difficult. Not impossible, but highly unlikely. Best bet is to lie low for a while and once everything is under control reach out. 

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It's really funny today they sent me an email inviting me to apply for an Amex gold card. Like salt on a wound. Haha. 

They have been very patient with me. I've had that card at the limit for quite a while maybe 3 years ago. They saw me drop spending on it and paying off that spending while still being close to the limit. I then paid it in full and kept it at PIF until the marriage/divorce drama started. I suppose since it is a credit card instead of a charge card they were okay with it.  

This time I was under 17% util which became over 85% when they dropped the limit. 

Another crazy thing is after I came back from my overseas drama was all the 0% apr credit card offers in the mail I had. I have a stack of them. Of course I know not to apply in my current condition. 

One other thing about my relationship with Amex. That card started pretty high. But they kept letting me CLI to a point i did not expect. The limit reached a point that I had no idea I could obtain. It seemed like even if I applied for another Amex they would want to take from that limit to give to the new card. 

I anticipate getting my balances below 8% total in a week or 2. Would I then wait for that to get reflected in my reports and then contact Amex? 

Also I feel weird asking considering I've been on credit forums for so long. What is AA? 

[bradlin]

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@bigseegar wrote:

Exactly what Firemedic1 said to do.

AmEx does a SP on your credit every month (sometimes more than once) and monitors your entire credit picture closely. They saw those lates, then a closure by card issuer and that high 90% UTL card and an over 30% UTL as well and didn't like it. PLUS the fact you carry a balance on the AmEx (which they really don't like seeing to be honest, even if they are a revolver, they still much prefer PIF most months) and it was the Perfect Storm. Yes, they think you're in financial trouble or enroute to same. For sure PIF but I think I'd pay down some of the other card debt first because if they are still shy when you pay AmEx in full they may (also may not though) close the account if the othe balances are still high. Many years ago when my business failed even though I didn't owe a dime on any of my AmEx cards and PIF every single month, they still closed my accounts. Took me 19 years to get back in. 

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Yes they clearly watch the other accounts. As I have mentioned elsewhere they have tolerated some risky behavior from me before. But my payment history was spotless. Even as their card was close to the limit other cards also had a balance. 

I suspect a part of what's going on is some kind of macroeconomic forecast they have. I really don't want to get into market talk but seriously how high and for how long can a bull market last? 

[W261w261]

AA = Adverse Action

[bradlin]

Thank you. We will see. I suspect in the worst case even if they deny restoring the line they will let me CLI it back up over time. As long as I get back to and keep it under 8% again. 

It seems Barclays actually reopened my account. I was able to add it to Apple Pay. I want to test it further. I just contacted executive CS via email. 

I appreciate everyone's advice and truly I was getting complacent with these credit cards and balances. It's best to just not utilize these very much if possible. Especially in these uncertain times. 

Edit: Yes! confirmed! I made an Amazon purchase (Amazon doesn't charge immediately) and now I see the usage on the Barclays app. They did reopen it and clearly without checking my new credit score. 

I really want to GW those SL lates. Do it myself or through a service? I suspect trying via a simple CS call might not hurt. They are private loans so legally they have the ability. 

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@W261w261 wrote:

AA = Adverse Action