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Decreased credit limit when paying off Amex

wanting2swagger
Established Contributor

Re: Decreased credit limit when paying off Amex

We use fico, no he has 4 cards the other three have zero balance 

EQ: 812 TU: 823 EXP: 826
Message 11 of 18
Remedios
Moderator

Re: Decreased credit limit when paying off Amex

Last question, I promise (from me at least)

What is the balance of the American Express card right now, and what did they reduce limit to? 

When someone asks you *What's wrong*, and you're not sure if you want to start listing it in alphabetical or in order of importance.
Message 12 of 18
wanting2swagger
Established Contributor

Re: Decreased credit limit when paying off Amex

Zero balance, they reduced it by 6000

EQ: 812 TU: 823 EXP: 826
Message 13 of 18
Remedios
Moderator

Re: Decreased credit limit when paying off Amex

If all of his credit cards have a $0.00 balance, there is a penalty for that (yeah I know 😒). 

As soon as one card reports a balance, points will be back 

When someone asks you *What's wrong*, and you're not sure if you want to start listing it in alphabetical or in order of importance.
Message 14 of 18
K-in-Boston
Moderator

Re: Decreased credit limit when paying off Amex

Thanks for sticking with us and giving us further info.  Yes definitely all accounts reporting zero would explain a score dip like that; since there are no balances to divide by credit limits reducing that card to $5000 or $50 or increasing it to $50,000 would make no difference on scoring in any scenario.  Reporting a balance doesn't mean one needs to be carried and interest paid, of course.  FICO just needs to see that credit is being used and being used responsibly.

 

In this case, it may actually be worth a call to Amex to see if they will reconsider the CLD since it's not really balance chasing and your husband's circumstances have changed.

Message 15 of 18
MyDataMyChoice
Valued Contributor

Re: Decreased credit limit when paying off Amex

Did you call and ask for the credit limit to be resored?

I know this happened to me with Amex on my Blue card many years ago and they were balance chasing me... they were able to restore my limit if I paid the balance in full.  (I know you already did... doesn't hurt to ask )

 

Credit Balances over 30% raise a risk indicator... 19,000 Credit Limit shouldn't have more than $5,700 revolved... 

 

 



+AU on: 2008 Sears MC $2,001 | 2016 SEARS Store Card $2,001 | 2011 Synchrony Home $5,500 | 2003 FNBO Visa $9,900 | 2008 Macys Amex $3,400 | 2008 Kohls $2,000 | 2008 JC Penny $500 | 2016 TJX Mastercard $1,500 | 2018 AAdvantage Aviator MC $5,600 | 2018 HSN $4,500
Member of: Andrews FCU | PENFED CU | SDFCU | Alliant CU | NASA FCU | NWFCU | Ally Bank | BofA | Merrill | Greenwood CU | Elements Financial CU | Ocean State CU | Wells Fargo | Citizens Bank | Chase Bank | RI Credit Union | US Financial FCU
Message 16 of 18
Taurus22
Frequent Contributor

Re: Decreased credit limit when paying off Amex

Not trying to jack the thread, but I have a very similar circumstance with AMEX and had an additional question to ask....

 

Since I got my AMEX BCP back in April '20, I took advantage of the 0% promo. My SL was only $2000 (substantially below my other limits) and I have maintained a balance between $1400-1800, paying off slightly more than the minimum each month, then adding more, etc. I haven't attempted my first 3x CLI because I have planned to pay the balance to zero by March this year with a couple of large payments. Now, I intend to simply BT the balance over to Discover ( Disco is offering me a 12/mth 0% BT). I'm wondering, given the current climate and experiences like the OP has mentioned, "IF" they don't CLD my poor little $2k limit, how that might affect the 3x CLI attempt after I clear the balance?

Current Wallet
Sock Drawered


Message 17 of 18
MyDataMyChoice
Valued Contributor

Re: Decreased credit limit when paying off Amex

Taurus22 They will see the increase in the Discover Balance. What is the limit on Discover?

Rule of thumb never go over 30%

Also, what you are doing is known reason for CLD/Adverse
That is Pyramiding Debt



+AU on: 2008 Sears MC $2,001 | 2016 SEARS Store Card $2,001 | 2011 Synchrony Home $5,500 | 2003 FNBO Visa $9,900 | 2008 Macys Amex $3,400 | 2008 Kohls $2,000 | 2008 JC Penny $500 | 2016 TJX Mastercard $1,500 | 2018 AAdvantage Aviator MC $5,600 | 2018 HSN $4,500
Member of: Andrews FCU | PENFED CU | SDFCU | Alliant CU | NASA FCU | NWFCU | Ally Bank | BofA | Merrill | Greenwood CU | Elements Financial CU | Ocean State CU | Wells Fargo | Citizens Bank | Chase Bank | RI Credit Union | US Financial FCU
Message 18 of 18
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