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Amex transferred my Credit from One card to Another????

Your FICO® Scores can impact your loan interest rates, terms, approvals and more.
Valued Member

Amex transferred my Credit from One card to Another????

I applied for Amex Cash Magnet... they approved it for 10,000 but I already have Amex Blue cash preferred with 30K limit 

 

and when I login to my Amex account my Amex Blue cash preferred limit is slashed by 10K to 20K, and the customer service rep says they moved my credit to new card

 

 

AMEX BLUE CASH Preferred 20000 DISCOVER 10500 CHASE SLATE 5000(Closed) BOFA 10600 CITI Thank you Preferred 12820 CITI Double Cash 14000 Citi Simplicity 12500 DCU 5000(Closed) Amex Cash Magnet 10000 CapOne Silver 6000 WellsFargo 2500 Macys 5300
8 REPLIES 8
Valued Member

Re: Amex transferred my Credit from One card to Another????

Welcome to the unhappy club.  Smiley Sad

 

My experience with this

Message 2 of 9
Senior Contributor

Re: Amex transferred my Credit from One card to Another????

Both Amex and BofA will do this when you're at the current max exposure. You can call or go into your online account and move some of the credit limit back.

Or wait 181 days and request a CLI.

Message 3 of 9
Community Leader
Super Contributor

Re: Amex transferred my Credit from One card to Another????

This happens when you at the max credit the lender is willing to extend you at the time of application. Rather than deny your request, they open up your requested card with some of the credit they have issued you on the another card you may have. It does stink but its alwsys a possibilty when soliciting credit from a lender.
Message 4 of 9
Established Contributor

Re: Amex transferred my Credit from One card to Another????

It happens more often than people realize, sorry it happened to you though.





~~ Former Royal Navy Submariner - Proud to have served ~~
Message 5 of 9
Moderator

Re: Amex transferred my Credit from One card to Another????


@Gmood1 wrote:

Both Amex and BofA will do this when you're at the current max exposure. You can call or go into your online account and move some of the credit limit back.

Or wait 181 days and request a CLI.


+1

 

Wells Fargo will do this as well, specifically if you haven't used your existing card in six months and it has a zero balance.

 

https://www.wellsfargo.com/credit-cards/platinum-visa/terms/


Credit limit reallocation

If you have a credit card with Wells Fargo, have no current balance on that card and have not used your card for any purpose in the past six months and you are applying for an additional card, you agree to allow Wells Fargo to allocate your credit limits between your existing and new credit card accounts, to allow for use of both cards.  Please note that you can change or reallocate your limits on your own by calling Customer Service at any time, with certain restrictions.

Message 6 of 9
Moderator

Re: Amex transferred my Credit from One card to Another????

And to piggyback on what mentioned above, AmEx and WF aren't the only ones that do this. Chase, BoA, Commerce, Discover, etc. Some do pretty good about communicating any potential changes, but it's not a requirement on their part since it's covered in the CCA.

Most folks don't think that having exposure with a variety of products would impact obtaining future ones or even CLIs. So, always be aware that a lender reserves the right to limit unsecured exposure by reducing and/or reallocating access lines at their discretion and as appropriate.
Message 7 of 9
Valued Contributor

Re: Amex transferred my Credit from One card to Another????

The same thing happened to me back in late October when I was approved for my SPG business card. I was all ecstatic about the $18k approval...until I saw they busted my BCE by 1/2. I called and had it moved back + netted a $3k approval on SPG. I guess in my case they took my 5 years and good payment history with AMEX and made the exception to approve me manually w/o a reallocation. But this also means the next CLI I ask for will have to be on my BCE b/c if I ask for one on any other revolver they'll likely rob BCE again--in that case I'd rather have a denial.

BUSINESS
Message 8 of 9
Super Contributor

Re: Amex transferred my Credit from One card to Another????

Yes, I have seen this on apps in the last two years for AMEX and BofA. The good news is total credit does not decrease, in my cases increased a bit, and you don’t get an outright denial on the new app.

OP your siggy needs updating. Congrats on the new card.
High Bal Jan 2009 $116k on $146k limits 80% Util.
Oct 2014 $46k on $127k 36% util EQ 722 TU 727 EX 727
April 2018 $18k on $344k 5% util EQ 806 TU 810 EX 812
Jan 2019 $7.6k on $360k EQ 832 TU 839 EX 831
Message 9 of 9