Amex gold card spending limited

[SouthJamaica]

I just had a $3k charge on my Amex Gold Card declined, because I usually only spend $500 month on it, and never went higher than $1700 in a month.

I called, thinking there was a fraud block or something, but the guy said I could only get approved for $1700, because the card is based on prior spending patterns.

I cancelled the card. Can't see paying $250 a month for a piece of garbage like that.

[Caught750]

It’s odd that they wouldn’t approve a charge for $1700 if you’ve always PIF. I’m shocked to hear that and, honestly, I’d have likely closed it as well.

I’ve heard that spending limits are based off of the last 6 months but that still seems like an issue to me.

[simplynoir]

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@Caught750 wrote:
It’s odd that they wouldn’t approve a charge for $1700 if you’ve always PIF. I’m shocked to hear that and, honestly, I’d have likely closed it as well.

I’ve heard that spending limits are based off of the last 6 months but that still seems like an issue to me.

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It was $3k charge they wouldn't approve, $1700 was the max they would allow based on previous spending patterns

[Caught750]

My mistake. I still think that’s a bit odd. Unless their concerns come from the Util issues (or DTI issues) discusses elsewhere.

I understand SJs annoyance and would likely react the same way

[SouthJamaica]

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@Caught750 wrote:
It’s odd that they wouldn’t approve a charge for $1700 if you’ve always PIF. I’m shocked to hear that and, honestly, I’d have likely closed it as well.

I’ve heard that spending limits are based off of the last 6 months but that still seems like an issue to me.

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Agreed. After he told me the charge had been declined because of my prior spending patterns, I fully expected him to say "but now that you are confirming that the charge is authorized, we can go ahead and approve it". Instead he said "we can only approve you for $1700, because this card's limit is based on prior spending". 

What a way to do business.

[SouthJamaica]

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@SouthJamaica wrote:

I just had a $3k charge on my Amex Gold Card declined, because I usually only spend $500 month on it, and never went higher than $1700 in a month.

I called, thinking there was a fraud block or something, but the guy said I could only get approved for $1700, because the card is based on prior spending patterns.

I cancelled the card. Can't see paying $250 a month for a piece of garbage like that.

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Now I can stop going to Shake Shack each month trying to make use of my $10 meal credit.

[Anonymous]

Still, charge cards like this are meant for instances when you actually need to use it for a big purchase. I get that they would rather you put all your spend or significanty more that $1K per month. But to say you can't charge $3K because of 6 monhs of only $1K spend seems ueselsss to me. Especialy if you're PIF and pattern fluctuates.

If they want people to pay the AF, they should be a little more agreeable/trustworthy to be there when you need them. I mean we're not talking $15K here, and $3 would likely be PIF on next statement. Could have at least approved the transaction, then sent the friendly email to pay it down

If this ever happens to me, i will probably do the same. My spend has decreased recently due to becoming more budget mindful, and it being early in the new year. But i want to know that if something ever comes up and i need to charge it, I can. 

[K-in-Boston]

"Declined because of [my] prior spending patterns" sounds like the CSR giving the blanket answer.  NPSL is determined by much more than that.  I'll go ages without making a big charge on my charge cards and then suddenly there's 4 or 5 digits in one shot.  Unfortunately, I think it's sympomatic of the other AA you've seen.  While recent charges do certainly factor into the decision-making, they're not the sole factor and most people with an established history should not encounter an issue like this.  I believe the more truthful statement would be "due to other issues we've identified, your spending limit has been set at the highest previous monthly statement you have had with us."

No pre-set spending limit on purchases does not mean unlimited spending. Your purchases are approved based on a variety of factors, including current spending patterns, your payment history, credit record, and financial resources known to us.

Edit:  Janus's post came in while I was typing this, and addressed the reason I felt the need to type this reply out.  I don't want this to sound like I'm blaming SJ, but it's not the norm and I think he was just given an incomplete reasoning for the limit being imposed.  Again, many years of experience tells me that I can go months or even a year or two without making a huge purchase and then when I do, there is no question in my mind that the charge will be approved.

[wasCB14]

I'm not sure what to think. At first, I thought it was a matter of overall utilization...but Amex hasn't slashed OP's significant revolving lines with them, or put OP through FR or demanded POI.

I thought I had broken the "three times highest paid balance in the last 6 months" rule (or however Amex defines it) on Schwab in 2018, but by a hair I stayed within 3x. I've definitely done major BBP spend out of the blue, but that's a revolver and not a charge card.

[FinStar]

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@K-in-Boston wrote:

"Declined because of [my] prior spending patterns" sounds like the CSR giving the blanket answer.  NPSL is determined by much more than that.  I'll go ages without making a big charge on my charge cards and then suddenly there's 4 or 5 digits in one shot.  Unfortunately, I think it's sympomatic of the other AA you've seen.  While recent charges do certainly factor into the decision-making, they're not the sole factor and most people with an established history should not encounter an issue like this.  I believe the more truthful statement would be "due to other issues we've identified, your spending limit has been set at the highest previous monthly statement you have had with us."

No pre-set spending limit on purchases does not mean unlimited spending. Your purchases are approved based on a variety of factors, including current spending patterns, your payment history, credit record, and financial resources known to us.

Edit:  Janus's post came in while I was typing this, and addressed the reason I felt the need to type this reply out.  I don't want this to sound like I'm blaming SJ, but it's not the norm and I think he was just given an incomplete reasoning for the limit being imposed.  Again, many years of experience tells me that I can go months or even a year or two without making a huge purchase and then when I do, there is no question in mind that the charge will be approved.

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Agree. 

Yes, the card is definitely not "garbage" as OP has had historical use of it without any grievances.  Yes, it makes it a bit more restrictive, but this restriction is periodically reviewed and when AmEx is more comfortable with an overall profile, it can be lifted.

OP, my gut feeling tells me they've been watching the increase utilization and score deterioration (amongst other factors) to limit their exposure.  I wouldn't take it personally.