Help me understand - The Amex strategy

[Anonymous]

Hi All,

So I am new to Amex.  I applied for the Business card (gold card via extra rewards) and the personal  - BCP with an initial 7000 limit.  I have read the Amex CLI faithfully and some other posts on how to be on your best behaviour to get the credit increase.  My BCP was approved on the 17th of Nov and when I logged in a few minutes ago, it said the statement closing date is today 27th Nov.  That is just 10 days.....  I have used the card so I quickly paid it to prevent it from reporting.

My question is, should I pay before the statement cut to qualify for the increase or should I let the balance report to the CRA and then pay by the due date?  My UTL is 1% and going to be this way until the increase and then up it up a little.  Thank you.

Current Scores - EX FICO (727) EX FICO( 717) TU FICO (728)

[VirtualCuriosity]

The only non-expert response I can offer is that I would probably just keep doing what you're doing.  Keep UTL very low and use their card, paying it off before statement closes.  I can assume that they want us to use their cards well and show we don't have to carry balances.  

[bada_bing]

Paying before statement cut will influence what other creditors see as a reported balance

if they pull your report. It doesn't influence what Amex sees for your Amex account activity.

Amex is driven by their own internal risk models, not by FICO score.

If its more convenient, just pay the balance off on the due date. Having a zero balance

at the time you request a CLI is appropriate, any other time not so much. If you need to

get a human underwriter involved, I think that having used autopay from your bank account

consistantly can be a positive influence. Issuers like to have access to your bank account,

especially if it has always been funded for what you owe them. Early and multiple payments

aren't necessarily a positive influence, as that is out of the norm behavior. Even though it could

be argued you're just being extra vigilant.

You shouldn't have an issue with your first 3x CLI.

[B335is]

My advice:

1)  Don't apply for new cards.

2)  Put the majority, if not all of your spend on Amex.

3)  Don't worry about how much it reports - especially if you're paying it off in full. 

[Anonymous]

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@VirtualCuriosity wrote:

The only non-expert response I can offer is that I would probably just keep doing what you're doing.  Keep UTL very low and use their card, paying it off before statement closes.  I can assume that they want us to use their cards well and show we don't have to carry balances.  

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Thank you for clarifying..

[Anonymous]

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@bada_bing wrote:

Paying before statement cut will influence what other creditors see as a reported balance

if they pull your report. It doesn't influence what Amex sees for your Amex account activity.

Amex is driven by their own internal risk models, not by FICO score.

If its more convenient, just pay the balance off on the due date. Having a zero balance

at the time you request a CLI is appropriate, any other time not so much. If you need to

get a human underwriter involved, I think that having used autopay from your bank account

consistantly can be a positive influence. Issuers like to have access to your bank account,

especially if it has always been funded for what you owe them. Early and multiple payments

aren't necessarily a positive influence, as that is out of the norm behavior. Even though it could

be argued you're just being extra vigilant.

You shouldn't have an issue with your first 3x CLI.

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Thanks you and will do as stated.

[Anonymous]

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@B335is wrote:

My advice:

1)  Don't apply for new cards.

2)  Put the majority, if not all of your spend on Amex.

3)  Don't worry about how much it reports - especially if you're paying it off in full. 

---

Thank you.  This is great.. I will do just that

[scenery_guy]

I'm the nay sayer on this subject. I'm pretty sloppy with Amex, I typically PIF the a few day before the bill is due and sometimes the day before it's due. In the past I used to PIF before the statement posted under the same thought you had about "best behavior" thing but I'm bust enough with my business I don't have time to micro manage all my cards. I have autopay set to PIF so I don't "forget" to ever pay. 

I decided I would try something and went online a few minutes ago for a CLI on my Reserve card. Instant approval from $15K to $30K. Yes I know about the 3x CLI but I have 5 Amex cards with 4 of them credit and one charge, no need to try to get huge limits on all my Amex cards. All of them see all sorts of activity and a couple of them run near the limit monthly (thankfully all business purchases earning points and miles). As I mentioned I do PIF but for this request I wanted to try asking for a 2x with this card at 70% UTL. Seems it did not matter. 

I believe Amex likes usage. Activity does not bother them so showing ULT seems to be fine. They like PIF.

Hope this helps guide you. 

[Anonymous]

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@scenery_guy wrote:

I'm the nay sayer on this subject. I'm pretty sloppy with Amex, I typically PIF the a few day before the bill is due and sometimes the day before it's due. In the past I used to PIF before the statement posted under the same thought you had about "best behavior" thing but I'm bust enough with my business I don't have time to micro manage all my cards. I have autopay set to PIF so I don't "forget" to ever pay. 

I decided I would try something and went online a few minutes ago for a CLI on my Reserve card. Instant approval from $15K to $30K. Yes I know about the 3x CLI but I have 5 Amex cards with 4 of them credit and one charge, no need to try to get huge limits on all my Amex cards. All of them see all sorts of activity and a couple of them run near the limit monthly (thankfully all business purchases earning points and miles). As I mentioned I do PIF but for this request I wanted to try asking for a 2x with this card at 70% UTL. Seems it did not matter. 

I believe Amex likes usage. Activity does not bother them so showing ULT seems to be fine. They like PIF.

Hope this helps guide you. 

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Thank you Secenery_guy.  It does help as I didn't know you can have that many Amex cards personally

[takeshi74]

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@yesi-ts-me wrote:

My question is, should I pay before the statement cut to qualify for the increase or should I let the balance report to the CRA and then pay by the due date?

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It really isn't going to be a make-or-break factor for the CLI.  The CLI will depend on your credit and income.

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@bada_bing wrote:

Having a zero balance at the time you request a CLI is appropriate, any other time not so much.

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Same thing here.  My CLI's were granted with balances on the cards.  Reducing reported utilization can help one's credit, however,