CLD season has arrived. Amex AA

[Anonymous]

I'm seeing a lot of people being afraid right now. It kind of reminds me of 2008-2009, when the wheels fell off and we went into a recession. I wonder if the banks are foreseeing things that we don't yet understand. Fortunately, I'm in good with 3 good credit unions and have revolving credit lines with all of them. My Penfed Amex and Visa Sig are the highest rates, which are 15.99%. I'm running about $4500 on BT balance right now at 0%. My other two cards are $8k and $10k with 6.25% and 8.9% from small credit unions in Washington. Those, I owe nothing on. If I got AA tomorrow, I would be fine. The first cards I would start dumping would be everything recently opened, mostly Sych and Comenity cards. Losing them would put my AAoA up quite a bit. I have around $240k in revolving credit, including store cards. Even if I went down to only $50k in CLs, I could make adjustments that would still keep me at 5% or less utilization. I think it's good we're discussing this and it's always good to consult for strategy. I've gained much information here that has helped me immensely and am grateful for everyone here.

[longtimelurker]

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@Anonymous wrote:

 Losing them would put my AAoA up quite a bit.

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No it wouldn't!  FICO AAoA counts open and closed cards, so it won't impact AAoA until the closed cards fall off about 10 years from now

[takeshi74]

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@Anonymous wrote:
CLD season has arrived

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Has nothing to do with the season and everything to do with your credit profile.

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@Anonymous wrote:

Does this mean that Amx doesn't like balance transfers either?

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No, it does not.  Person X getting AA doesn't mean the Creditor A "doesn't like Y".  It means that Creditor A has concerns with Person X's profile which includes recently activity.

Never rely on gross oversimplications like "AmEx hates balances", "AmEx hates BT's", etc.  Any creditor will consider one's entire credit profile versus the creditor's risk tolerance.  A given activity may be the straw that broke the camel's back for a given person's credit profile but that doesn't mean that the creditor "doesn't like" the activity.    The next person with an entirely diffferent credit profile could be just fine with the same given activity.  Context always matters.

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@baller4life wrote:

Put it to you like this ML. I've had a promo apr of 6.99% since March of this year good till March of 2016 and I refuse to carry a balance with Amex. I have read way too many horror stories of these AA's from carrying a balance too long with Amex. Now before the naysayers chime in, I am well aware that many have carried a balance without incident. However, I personally choose to put Amex in the pif category.

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Put it to you like this B4.  I got all my CLI's with AmEx while carrying balances on their cards.

Certainly do whatever works for you but be careful relying on memes like "AmEx hates balances".  Always carefully consider your sources.  The horror stories aren't just due to balance carrying itself but the credit profiles of those who experienced the adverse action as well.

I'm not advocating balance carrying.  I'm just cautioning people from relying on oversimplified causality.  There's nothing wrong with taking the safest apporach possible and not carrying balances with AmEx but even that itself doesn't guarantee anything as, again, one's entire credit profile matters -- not just balances with AmEx.

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@creditguy wrote:

You know what would be nice? If a Card would just lay out up front with their terms and conditions what behaviors they prefer and what the consequences are if you stray from their wants and needs. 

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It would be nice but it won't happen.  All you can do is work with what you've got.  We know the usual suspects and there's always a cause even when people say that there was "no reason".  It's always based on risk assessment and not simply random.  Now, a person may not agree with a given creditor's risk assessment but the reason certainly exists.

[Anonymous]

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@baller4life wrote:

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@Anonymous wrote:

Does this mean that Amx doesn't like balance transfers either? Even though they encourage you to do it?

So sorry, OP. Very disappointing.

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Put it to you like this ML. I've had a promo apr of 6.99% since March of this year good till March of 2016 and I refuse to carry a balance with Amex. I have read way too many horror stories of these AA's from carrying a balance too long with Amex. Now before the naysayers chime in, I am well aware that many have carried a balance without incident. However, I personally choose to put Amex in the pif category.

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I was going to make a post but this here sums up my feelings 100%. 

[kdm31091]

I pretty much agree with takeshi. We cannot rely on memes or oversimplifications. "Amex hates balances, Amex hates BTs, etc etc". I've carried a balance on BCP and the world didn't end. AA always has many factors involved, and we are likely not always informed of everything going on in someone's profile. So while stories like this can be helpful, they also do not need to be extrapolated into "rules" such as "don't carry a balance with amex" etc.

[Anonymous]

I really think this crap should be illegal under federal law. They should have no right to instantly change the terms or credit limit without just cause or a dam good reason. 10 percent total utilization and they AA'D you?? That's just retarded. I would be on the phone immediatly with there EO I would skip regular customer care completely. I would write a physical letter to there worldwide CEO. If they don't replace your limit I would close all cards. I will never ever let a company make profit off me for years and then they get spooked for one little thing and then screw me over. Wended more credit protection rules in this country like it is in Germany or Canada. Our laws here are so weak and never ever benefit the consumer. Just like the card act was written by the Big Banks. LOL it's a joke. 

[longtimelurker]

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@Anonymous wrote:

I really think this crap should be illegal under federal law. They should have no right to instantly change the terms or credit limit without just cause or a dam good reason. 10 percent total utilization and they AA'D you?? That's just retarded. I would be on the phone immediatly with there EO I would skip regular customer care completely. I would write a physical letter to there worldwide CEO. If they don't replace your limit I would close all cards. I will never ever let a company make profit off me for years and then they get spooked for one little thing and then screw me over. Wended more credit protection rules in this country like it is in Germany or Canada. Our laws here are so weak and never ever benefit the consumer. Just like the card act was written by the Big Banks. LOL it's a joke. 

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I suspect that for most people here who get AA'd, the banks could make a good case for increased risk, compared to the general population.   Most of us show way too much credit seeking, new accounts etc.  

[scottwagnon]

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@Anonymous wrote:
Just received email citing CLD from $5 to $1.9k on BCE. I have a $1500 balance - 0% intro rate. Oh well

I hope they don't touch my Delta at $13.5

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it is a lie that amex doesn't want consumers to carry balances; in fact they encourage (i've receive several emails from them encouraging me to do just that) those with good standing and history to do this. the difference however is that unlike almost every other credit card company and bank, amex is paticular HOW you carry the balance. if they see only minimum payments or small payments over a long period of time, then they will CLD the card until you pay it off. any payments under 150 a month on a sizable balance will probably trigger something in their system. so its a fine line with them as they want to profit from you only if you are paying off sizable amounts on a balance.

however, with this in mind, i perfer to carry a balance with discover or capital one.

[NRB525]

CLD Seasons Greetings everyone!

Merry CLD!

I'll be home for CLD

Here comes Santa Claus, here comes Santa Claus, right down CLD lane...

Rudolph the red-nosed reindeer, had a very shiny nose, and if you ever saw it, you would get a CLD.

[UncleB]

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@NRB525 wrote:

CLD Seasons Greetings everyone!

Merry CLD!

I'll be home for CLD

Here comes Santa Claus, here comes Santa Claus, right down CLD lane...

Rudolph the red-nosed reindeer, had a very shiny nose, and if you ever saw it, you would get a CLD.

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LOL... I love your song, but instead of Santa, I would substitute in Krampus - CLD is much more his 'style'...