Balance for AMEX 3x CLI

[Anonymous]

My AMEX credit limit is currently at $24K. My 180 day wait is right around the corner. If I’ve been keeping a balance between $700-1200 each month, do you think that will count against me when I do request my CLI? I have been using it a lot, but I figured as long as I kept my utilization under 5%, I’m good. However, I’m wondering if AMEX actually wants to me have a 0 balance? And would it hurt my chances of getting approved for a CLI if I had a balance? I’ve never had any late payments with them.

[Anonymous]

You'll be fine although I question the utility of carrying a balance if you could pay it off.  Amex wouldn't care since you're generating interest income for them and your balance is nowhere near the 30% recommended utilization benchmark of "responsible credit card use>"

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@Anonymous wrote:
My AMEX credit limit is currently at $24K. My 180 day wait is right around the corner. If I’ve been keeping a balance between $700-1200 each month, do you think that will count against me when I do request my CLI? I have been using it a lot, but I figured as long as I kept my utilization under 5%, I’m good. However, I’m wondering if AMEX actually wants to me have a 0 balance? And would it hurt my chances of getting approved for a CLI if I had a balance? I’ve never had any late payments with them.

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[redpat]

What”s wrong w/ 24k?  Depending on your income level and other cc limits there could be a CL wall you hit with Amex and they might request form 4506t and then you would have to play the back out game until cli request doesn’t ask for the form.

There is nothing wrong with the limit you have, but if you want to have 35k, 40k or higher limit for esthetics purposes then go for it.

Probably what you didn’t want to hear but someone had to be the right side of your brain......

[HeavenOhio]

There's no need to have a balance of zero. What you're doing is more than fine.

We generally haven't seen increases in the range of 24 to 72K. Recent data points indicate that when going for a substantial increase, 35K will likely generate a request for income verification (IV), but 34K likely won't. As mentioned, if AMEX requests IV, you can hit your browser's back button and try a lower amount. After about a week, you'll receive IV forms in the mail that you can ignore.

Once limits are above 30K, AMEX generally grants increases of 5K or so without the need for verification.

[Anonymous]

Thank you! No I totally understand. But if I’m not mistaken, it appears that the Equifax model also takes the ratio between types of debt/available credit. So I’m thinking a higher CL lowers the “weight” of my installment debt such as auto loan? Or am I wrong? On Equifax it shows me a Debt/Credit ratio which combines my debt (outstanding balance on auto loan + cc usage)/(original loan amount + available credit).

For example, let’s say I have a $24K auto loan balance and my Credit card limit is at $24K. Wouldn’t increasing my credit card limit to $35-40K help?

[Anonymous]

Total revolving credit does not affect the Auto loan. The auto loan is still an anchor around your neck, until the balance is paid down.

A higher CL on CC, only affects utilization on said CCs.

[Anonymous]

Based on historical anecdotal evidence shared on these forums you have nothing to worry about carrying the balance you are. I had a negative balance and still got my 3x. Balance only comes into play once you edge into the 2 digit percentage range of what you're carrying

[HeavenOhio]

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@Anonymous wrote:

Total revolving credit does not affect the Auto loan. The auto loan is still an anchor around your neck, until the balance is paid down.

A higher CL on CC, only affects utilization on said CCs.

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The auto loan isn't likely to be much of an anchor, though. It might even be providing a slight benefit for the OP.

[rsl1313]

Hi,

 I’m confused again! Are we talking about cards Amex cards you can carry a balance on or can you request a CLI after 180 days on all Amex cards?

[HeavenOhio]

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@rsl1313 wrote:

Hi,

 I’m confused again! Are we talking about cards Amex cards you can carry a balance on or can you request a CLI after 180 days on all Amex cards?

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You can request a CLI on AMEX revolvers. There's technically no limit to increase on charge cards.