cancel
Showing results for 
Search instead for 
Did you mean: 

Does Amex really decrease limits for changes in credit reports?

Auto Loans for ANY Credit Situation. Immediate Response.
Advertiser disclosure
Highlighted
Valued Member

Does Amex really decrease limits for changes in credit reports?

I was planning on going on a spree this month for new credit accounts so I can get rid of some bad cards I have.

I wanted to start getting into Amex but I heard Amex chop's limits in half if you have balances with your outside credit accounts??? How true is that?

21y/o trying to become an elite credit queen by 25.
Current: June 2019 EX 715; TU 723; EQ 720
Starting Score: TU 748; EQ 743; EX 739
Goal: 760 all round

Discover IT: (3.9k) Cap 1 QuicksilverOne: (4k) WF College Visa: (1700) Alphaeon: (14k) Credit One: (500) Nordstrom: (10k) VS Angel: (1.5k) BMW Financial Auto Loan (35k) ~ (Paid in full & Closed)
AAoA: 1y 11m
AoOA: 3y 9m
5 REPLIES 5
Valued Contributor

Re: Does Amex really decrease limits for changes in credit reports?

Every file is different, but there is no way Amex drop limits just because you have managable debt with other cards and no other issues.

Rebuild started in 2014  -  $100k+ unsecured credit in 2017  -  $250k+ unsecured credit in 2019.

DON'T WORK FOR CREDIT CARDS ... MAKE CREDIT CARDS WORK FOR YOU!

10% Rotating - Discover                    5%-20% - Amazon & Lowes                3-6% Groceries - NFCU & Amex Preferred
3-5% Gas - NFCU & Ducks Unl         4% Dining & Entertain - Savor            3% Travel & Hotels - Flagship, Propel, & Uber
2% Everything Else - Flagship          1% Cancer Charity - Fifth Third          0% Finance Promos - Venture & QuickSilver





    
Message 2 of 6
Super Contributor

Re: Does Amex really decrease limits for changes in credit reports?


@RoseGoldSam wrote:

I was planning on going on a spree this month for new credit accounts so I can get rid of some bad cards I have.

I wanted to start getting into Amex but I heard Amex chop's limits in half if you have balances with your outside credit accounts??? How true is that?


It is not true that Amex is going to automatically chop limits just because you have balances. That is not an absolute rule or truth at all. Yes, if something does dramatically change on your report and any lender (including Amex) doesn't like it, they could and do sometimes take action such as lowering credit limits. This could include escalating balances, numerous inquiries, new accounts etc. But there is no hard and fast "do this and Amex will do that" rule. Merely having balances on outside accounts is not enough to cause adverse action in most cases. Escalating large balances, perhaps.

Message 3 of 6
Moderator

Re: Does Amex really decrease limits for changes in credit reports?

If you applied for a bunch of cards and suddenly had huge balances all around, it's possible.  We got hit really hard with balance chasing and APR jacking about 12 years back when the markets crashed, and had tons of cards that suddenly had 80-95% utilization and they stayed there for years.  Amex is actually one of the very few lenders that never tightened the purse strings on us.


Message 4 of 6
Super Contributor

Re: Does Amex really decrease limits for changes in credit reports?

Once they establish a history and pattern for you, they could care less.







Message 5 of 6
Senior Contributor

Re: Does Amex really decrease limits for changes in credit reports?

Keep in mind that a lot of people here constantly push the envelope with their credit in one way or another. When someone reports getting adverse action "just because of X", there may be some behavior Y or risk factor Z that played a role. Y and Z may be common here but less common in the general population.

 

Think about it...Amex's limited acceptance means most customers have at least one non-Amex card. Most customers let balances report.

 

Amex wouldn't stay in business for long if they constantly irritated and inconvenienced their customers for such normal behavior.

Most spend: CSR, CFU, BBP
Rewards/AAoA ballast: CF, Discover, Costco, ED, Arrival
Perks: Schwab Platinum, IHG49, Hyatt75, Brilliant, Delta Platinum
Potential closures/downgrades: Savor, BCP, Double Cash
Message 6 of 6
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.