Getting balance chased because of AMEX

[recoveringfrombk7]

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@coldfusion wrote:

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@Anonymous wrote:

I had a auto loan. I had it paid to 10%. I had no inquires.

I bought a new vehicle with one inquiry from my credit union. I was at 70% LTV on the vehicle.

Total loan is $20,000

I got a personal inquiry from the PPP loan from .GOV for my business. all within a month

So two inquiries.

History on me is My credit is 788 no late payments.

I have a high income this year and last year. Gross will be very large

I made 80k 2018. 2019 I made more. Made a gross of $230k for the first six months of this year

I had a balance on my AMEX of $3,800. My limit was $25,700

I got a email from them and check my account and they dropped the limit to $3820

I paid the account in full to zero balance.

I called them and they said they would review it. I get a call back from them and they will fix it possibly but I need to provide all these income documents for all my income, assets, and business income (would cost me money to get my accountant to do it for me).Plus I really think everything they asked for is invasive for the small amount they are willing to lend me ($25,700 credit limit). So I tell them forget

I get a warning from myfico about getting balanced chased because my limit dropped.

Now I get a notice for Chase. I check my account and balance chased again. I paid in full.

I assume now discover is going to see I am getting balance chased and drop my limit (owe $2999 limit is $23,000)

What can I do to save my discover account?

Only thing that changed was the two inquires and the new auto loan.

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What about the PPP loan?   You scared the lenders with your additional loans compounded by you already carrying balances, which is why AMEX wanted to perform a financial review.

About all you can do is cross your fingers and hope that you don't get balance chased by Discover and if you do to call and plead your case.

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I'd be really surprised if the PPP loan application caused the problem.  DH has been playing the balance transfer game for about 1.5 years on a starting debt of about 30k and also took a PPP loan for our business.  We have about 1.5 years left to get to 0 on the BTs, but none of his lenders has blinked yet.  In fact, two of the 3 cards left with balances just gave him CLIs and Disco sent checks just last week.  Something is definitely odd here, seems like each of the lenders is spooking each other.  Don't think closing AMEX was ideal, I would have sent the docs.

[Anonymous]

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@recoveringfrombk7 wrote:

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@coldfusion wrote:

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@Anonymous wrote:

I had a auto loan. I had it paid to 10%. I had no inquires.

I bought a new vehicle with one inquiry from my credit union. I was at 70% LTV on the vehicle.

Total loan is $20,000

I got a personal inquiry from the PPP loan from .GOV for my business. all within a month

So two inquiries.

History on me is My credit is 788 no late payments.

I have a high income this year and last year. Gross will be very large

I made 80k 2018. 2019 I made more. Made a gross of $230k for the first six months of this year

I had a balance on my AMEX of $3,800. My limit was $25,700

I got a email from them and check my account and they dropped the limit to $3820

I paid the account in full to zero balance.

I called them and they said they would review it. I get a call back from them and they will fix it possibly but I need to provide all these income documents for all my income, assets, and business income (would cost me money to get my accountant to do it for me).Plus I really think everything they asked for is invasive for the small amount they are willing to lend me ($25,700 credit limit). So I tell them forget

I get a warning from myfico about getting balanced chased because my limit dropped.

Now I get a notice for Chase. I check my account and balance chased again. I paid in full.

I assume now discover is going to see I am getting balance chased and drop my limit (owe $2999 limit is $23,000)

What can I do to save my discover account?

Only thing that changed was the two inquires and the new auto loan.

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What about the PPP loan?   You scared the lenders with your additional loans compounded by you already carrying balances, which is why AMEX wanted to perform a financial review.

About all you can do is cross your fingers and hope that you don't get balance chased by Discover and if you do to call and plead your case.

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I'd be really surprised if the PPP loan application caused the problem.  DH has been playing the balance transfer game for about 1.5 years on a starting debt of about 30k and also took a PPP loan for our business.  We have about 1.5 years left to get to 0 on the BTs, but none of his lenders has blinked yet.  In fact, two of the 3 cards left with balances just gave him CLIs and Disco sent checks just last week.  Something is definitely odd here, seems like each of the lenders is spooking each other.  Don't think closing AMEX was ideal, I would have sent the docs.

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The docs would cost me money and time.    They requested business documents, documents on my personal income, my bank accounts, my house what I owe vs value, retirement and investment accounts, etc.  

They are not just asking for the normal form they ask for on a release of tax documents.  

they are asking me to prove net worth.  

At the end of the day....   IMO.   They are asking for to much for the "honor" of them POSSIBLY lending me 20k at a terrible rate.  

I closed the platinum.  kept the balance chasing card open(everyday card) I have another card (blue cash) with them with zero balance and it still shows $7000 limit. The original limit.  I never used that card   

It just pissed me off because it was kind of a little hobby building up these accounts and my credit    Lol. 

[K-in-Boston]

I'm sorry this happened to you.  Amex usually only takes these measures if there is fraud (including rewards abuse) involved, they have a reason to believe reported income is significantly higher than actual income, and/or they fear you will default on the account.

Was the $4000 balance being carried on a 0% promo?  How long have you had the card, and did you very recently change your reported income with them?  Going from $80k to $400K+ in 2 years is a rather drastic change.

[Remedios]

Okay, well...$27,000.00 is not small by any metric. 

Was the card that got balance chased in 0% promo?

How about Chase card?  

[Anonymous]

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@K-in-Boston wrote:

I'm sorry this happened to you.  Amex usually only takes these measures if there is fraud (including rewards abuse) involved, they have a reason to believe reported income significantly higher than actual income, and/or they fear you will default on the account.

Was the $4000 balance being carried on a 0% promo?  How long have you had the card, and did you very recently change your reported income with them?  Going from $80k to $400K+ in 2 years is a rather drastic change.

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My rate on the everyday card is 29.24.  Not sure if that changed with the update.  

they had a much lower income vs my real income.     I do not do manufactured spending for rewards.   

it's no big deal.  Because it is true. I would have never used much of that limits. Just sucks because it took me years to hit that.  

[K-in-Boston]

Was your account subject to the penalty APR because of a returned payment or because of a late payment?   Those are the only two possible ways to get a 29.24% APR on that card.

[Anonymous]

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@K-in-Boston wrote:

Was your account subject to the penalty APR because of a returned payment or because of a late payment?   Those are the only two possible ways to get a 29.24% APR on that card.

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Always on time 

[K-in-Boston]

I would check with American Express that they actually have you recorded as having on time payments without any that have been returned.  That APR is the penalty APR, which per their cardholder agreement (and federal law) can only happen when a payment is late or returned.  That would easily explain the balance chasing.

[recoveringfrombk7]

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@K-in-Boston wrote:

I would check with American Express that they actually have you recorded as having on time payments without any that have been returned.  That APR is the penalty APR, which per their cardholder agreement (and federal law) can only happen when a payment is late or returned.  That would easily explain the balance chasing.

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Have you received any credits back to the cards for travel perhaps / applied received credit as your payment?  Someone recently went through this, but I forget which lender.  Minimum payments must be made regardless of credits.  Just trying to think of ways you thought you were on time and they disagreed.  

[SFLSpotter9210]

It all started with Synchrony for me back in 2007 and the rest followed AMEX, CHASE and a few others. To be honest and this is just my opinion you make a strong income with your business. And your paying your accountant already why would it cost you money to get the data AMEX is already asking for? And from what your explaining your not carrying much of balances either I'm assuming your PIF when the statements hit? Then I'm only assuming the PPP hit on your CR is what's making them nervous. But if you supply them with the necessary financial data their requesting you should be fine. Good luck either way with your outcome and how you plan to handle it.