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Amex reduced credit limits. Are we back in 2008?

Saeren
Mega Contributor

Re: Amex reduced credit limits. Are we back in 2008?


@Remedios wrote:

@Superduper2014 wrote:

@HeavenOhio Good advise. 

 

Let's say Amex wants a $300 minimum payment. What is the amount you should pay to apiece them if you want to pay the minimum possible during the promo? 

 

Also, which other banks/lenders are sensitive to this off the top of your head. 

 

Thanks


@Superduper2014  you cannot negotiate to appease them. Whatever amount they give you is what you need to pay. If you continue with minimum payments, Amex is going to do Amex things. 

 

As far as which lender would allow you to make minimum payments while continuing to rack up balances, outside of the credit unions, I cannot think of any lender who is comfortable with the situation you're describing. 

The only difference is that other lenders wont "negotiate" or re-open cards if they decide to close them. 

 

If you use card for BT, or to take advantage of 0%, balance must go down, not up for a year. 

 

I dont want to sound too preachy (moderately preachy is okay), but there is a lesson to be learned here. 


I think OP is asking about going forward, after they pay what AMEX has asked, what amount they should be paying over the minimum to avoid the problem again.





Message 51 of 61
Remedios
Moderator

Re: Amex reduced credit limits. Are we back in 2008?


@Saeren wrote:

@Remedios wrote:

@Superduper2014 wrote:

@HeavenOhio Good advise. 

 

Let's say Amex wants a $300 minimum payment. What is the amount you should pay to apiece them if you want to pay the minimum possible during the promo? 

 

Also, which other banks/lenders are sensitive to this off the top of your head. 

 

Thanks


@Superduper2014  you cannot negotiate to appease them. Whatever amount they give you is what you need to pay. If you continue with minimum payments, Amex is going to do Amex things. 

 

As far as which lender would allow you to make minimum payments while continuing to rack up balances, outside of the credit unions, I cannot think of any lender who is comfortable with the situation you're describing. 

The only difference is that other lenders wont "negotiate" or re-open cards if they decide to close them. 

 

If you use card for BT, or to take advantage of 0%, balance must go down, not up for a year. 

 

I dont want to sound too preachy (moderately preachy is okay), but there is a lesson to be learned here. 


I think OP is asking about going forward, after they pay what AMEX has asked, what amount they should be paying over the minimum to avoid the problem again.


All of it, given the history? 

Undead Danny Trejo looks strangely like dead Danny Trejo, who looks exactly like alive Danny Trejo. Thanks, Netflix!
Message 52 of 61
Saeren
Mega Contributor

Re: Amex reduced credit limits. Are we back in 2008?


@Remedios wrote:

@Saeren wrote:

@Remedios wrote:

@Superduper2014 wrote:

@HeavenOhio Good advise. 

 

Let's say Amex wants a $300 minimum payment. What is the amount you should pay to apiece them if you want to pay the minimum possible during the promo? 

 

Also, which other banks/lenders are sensitive to this off the top of your head. 

 

Thanks


@Superduper2014  you cannot negotiate to appease them. Whatever amount they give you is what you need to pay. If you continue with minimum payments, Amex is going to do Amex things. 

 

As far as which lender would allow you to make minimum payments while continuing to rack up balances, outside of the credit unions, I cannot think of any lender who is comfortable with the situation you're describing. 

The only difference is that other lenders wont "negotiate" or re-open cards if they decide to close them. 

 

If you use card for BT, or to take advantage of 0%, balance must go down, not up for a year. 

 

I dont want to sound too preachy (moderately preachy is okay), but there is a lesson to be learned here. 


I think OP is asking about going forward, after they pay what AMEX has asked, what amount they should be paying over the minimum to avoid the problem again.


All of it, given the history? 


I don't really think that's necessary. AMEX doesn't expect to be paid in full right away, they just don't want to be holding the bag on a balance that isn't shrinking. 3X minimum seems to be commonly quoted as safe for AMEX. OP probably shouldn't be using the card if they're unable to pay off their new charges PLUS the 3X though.





Message 53 of 61
Superduper2014
Frequent Contributor

Re: Amex reduced credit limits. Are we back in 2008?

Sorry for my horrible spelling of "Appease" (yikes)

 

Yes. this if for going forward.

 

Thanks guys for the insights!

 

Message 54 of 61
Andru123
Valued Member

Re: Amex reduced credit limits. Are we back in 2008?

Just heard on a local chicago station, that 50 mil. credit cards got their credit cards limits decreased last months. 

Message 55 of 61
Revelate
Moderator Emeritus

Re: Amex reduced credit limits. Are we back in 2008?


@Andru123 wrote:

Just heard on a local chicago station, that 50 mil. credit cards got their credit cards limits decreased last months. 


Sigh, I am so sick of terrible data surveys.

 

CompareCards commissioned Qualtrics to conduct an online survey of 1,039 credit cardholders, with the sample base proportioned to represent the overall population. The survey was fielded April 22-24, 2020.

 

On their own site with the prominent LendingTree logo displayed.  Yeah, people looking for more credit during this time, that's a sign of financial stability.

 




        
Message 56 of 61
MaizeandBlue
Senior Contributor

Re: Amex reduced credit limits. Are we back in 2008?


@Superduper2014 wrote:

@HeavenOhio Good advise. 

 

Let's say Amex wants a $300 minimum payment. What is the amount you should pay to appease them if you want to pay the minimum possible during the promo? 

 

Also, which other banks/lenders are sensitive to this off the top of your head. 

 

Thanks


Let's say you have a 12-month 0% APR balance transfer period.  Divide the amount you transferred by 11 and pay that amount plus whatever charges you made for the month.  That's your minimum payment each month.  That way you'd have the balance paid off one month before the BT period ends.





Message 57 of 61
Janus
Senior Contributor

Re: Amex reduced credit limits. Are we back in 2008?


@Saeren wrote:

I don't really think that's necessary. AMEX doesn't expect to be paid in full right away, they just don't want to be holding the bag on a balance that isn't shrinking. 3X minimum seems to be commonly quoted as safe for AMEX. OP probably shouldn't be using the card if they're unable to pay off their new charges PLUS the 3X though.


Agreed. My very first card with Amex, a revlover, had a 0% promo so I carried a balance to take advantage of it. I also made more than minimums and paid it off within 6 months rather than dragging it out a whole 12. So I've practiced both methods of PIF and balance carrying, and haven't ever recieved any type of AA from them. 

 

I can't imagine what the balance would have to be for there to be a $300 minimum payments anyways, so that $300 should in most cases be the 3X minimum.  MaizeandBlue offered up a very good BT strategy.

 

 






Message 58 of 61
RSX
Established Contributor

Re: Amex reduced credit limits. Are we back in 2008?

another note is that as much as 0% is awesome, you still have to pay it off

i never put more than 50% utilization on a BT offer/card - this way it is useful but will drop below 29% in a short period of time

 

also, if you BT to another card, then 11 months later to another BT card, it does keep your interest payments low/zero, but you do have to pay off the debt eventually - and i think the BT kind of hides this fact

 

in the OP's case i would pay the card down to 30% and then make bigger than min payments until it is gone

 

and i agree with the Don't Mix BT and regular spend - it causes convoluted interest strategies - better to keep them separate

 

 

Dec 16/2019. EX. 721. EQ. 723. TU 746
Dec 29/2020 EX. 729 EQ. 723 TU 746
Apr 12/2021 EX. 735 EQ. 738 TU 759
Inq. EX 4 EQ 2 TU 5 - - CC 5x24, 3x12
Amex BCP $25k - Apple GS $17k - BMW/Elan $5k - Cap1 QS $16.7k - Chase Amazon $13.6k - Chase Bonvoy Boundless $10k - Chase United Club Infinite $26k - Citi DC $14.5k - CreditUnion1 $9k - DiscoverIT $23k - HSBC Gold - $10.5k - Penfed Gold - $12.5k - USBank Cash+ -$20k
Message 59 of 61
Brian_Earl_Spilner
Community Leader
Mega Contributor

Re: Amex reduced credit limits. Are we back in 2008?


@Janus wrote:

@Saeren wrote:

I don't really think that's necessary. AMEX doesn't expect to be paid in full right away, they just don't want to be holding the bag on a balance that isn't shrinking. 3X minimum seems to be commonly quoted as safe for AMEX. OP probably shouldn't be using the card if they're unable to pay off their new charges PLUS the 3X though.


Agreed. My very first card with Amex, a revlover, had a 0% promo so I carried a balance to take advantage of it. I also made more than minimums and paid it off within 6 months rather than dragging it out a whole 12. So I've practiced both methods of PIF and balance carrying, and haven't ever recieved any type of AA from them. 

 

I can't imagine what the balance would have to be for there to be a $300 minimum payments anyways, so that $300 should in most cases be the 3X minimum.  MaizeandBlue offered up a very good BT strategy.

 

 


In a previous thread, OP mentioned a $13k BT. Since Amex charges 1% of the intrest and balance, the card would have to be nearly maxed out to get close to $300. If the payment (I didn't read the thread) is at $300, there's probably some plan it payments involved because maxed out at 0%, is only $250.




Message 60 of 61
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