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So back in November of 2017, I was reading up quite a bit on the Amex FR. I guess all of the talk and articles about it got me worried so I took a preemptive measure to make sure it didn't happen to me by decreasing my credit limit with them. Here was my thought process.
I got the Amex Delta in October of 2016 with SL of 1K. 6 months later I got an auto-cli to 3K followed by ANOTHER auto-cli to 9K exactly 6 months after the first. At this rate, I figured the next CLI would follow suit and I would be sitting at 27K which is in the range for an FR.
In an effort to prevent this, I lowered my credit line with them from 9K to 7K and was told by the rep that I would not be receiving any auto-cli's any more but can still apply for an increase on their site if needed. Somehow I thought this would prevent me from an FR but in hindsight it just looks like a dumb move on my end because my stated income was like 20K so there's no way they would increase me past that.
The 7K is currently my highest limit and I really don't utilize much of my CL across any of my cards anyways so there isn't a need for a CLI right now, but I was just curious to know what you guys think and whether my action made sense or it was just plain dumb.
Your hindsight was 20/20.
Consider turning this into an opportunity for you to apply for a BCE in a couple of months, since it has no AF and you're now at least $2K below the threshold they're comfortable in extending you.
@Anonymous wrote:So back in November of 2017, I was reading up quite a bit on the Amex FR. I guess all of the talk and articles about it got me worried so I took a preemptive measure to make sure it didn't happen to me by decreasing my credit limit with them. Here was my thought process.
I got the Amex Delta in October of 2016 with SL of 1K. 6 months later I got an auto-cli to 3K followed by ANOTHER auto-cli to 9K exactly 6 months after the first. At this rate, I figured the next CLI would follow suit and I would be sitting at 27K which is in the range for an FR.
In an effort to prevent this, I lowered my credit line with them from 9K to 7K and was told by the rep that I would not be receiving any auto-cli's any more but can still apply for an increase on their site if needed. Somehow I thought this would prevent me from an FR but in hindsight it just looks like a dumb move on my end because my stated income was like 20K so there's no way they would increase me past that.
The 7K is currently my highest limit and I really don't utilize much of my CL across any of my cards anyways so there isn't a need for a CLI right now, but I was just curious to know what you guys think and whether my action made sense or it was just plain dumb.
I think it's a bit harsh to call your action 'dumb'; I would just say it was perhaps misguided.
Of course, all that really matters is your own comfort level. If the voluntary CLD helps you to sleep at night it was definitely worth it no matter what I say, or anybody else for that matter.
As for dodging an FR, well, it was likely overkill. People have been FR'ed with relatively modest credit lines, and some with massive credit lines have never heard a peep out of Amex, and likely won't.
Most likely had you left things as they were and continued your responsible spending habits you would have been fine with your previous higher credit line. There's also always a chance you could be FR'ed at your current (new) credit line... my point is you can drive yourself crazy trying to anticipate these things. Also keep in mind that usually when an FR is done, there's a reason... if you're not doing anything 'weird' (and if you were, you would know it) you will likely be fine.
In a nutshell, just treat this as a learning experience and unless you're spending habits are odd for someone at your income level don't fear the infamous Amex FR.
I think you are also confusing an FR with an income verification request. As others have said, an FR can happen at any income/CL level, when Amex get concerned about something. Income verification can happen when you request a CLI and Amex needs more information to justify it. While many report it happening around $25K, there is lots of variability, some never get them, others might get them at lower levels.
While income verification is also part of an FR, on its own it is harmless. You can refuse to submit the form and then you just don't get the CLI. With an FR, failure to comply will generally lead to card(s) closure. Also, when requesting an CLI, if asked for income verification, you can cancel and try again with a lower amount until you are no longer asked. Sometimes the "allowed" increase will be too small, and you can then decide to go big again and submit the info.
The 3x CLI is not guranteed. I got a 3x increase at 2 weeks. And then six months later I got a 2x increase. I think 3x is just the max. Also can't you just ask what you want your limit to be? So couldn't you just ask your next CLI to be to 20k?
I wish they’d auto increase me!
There is absolutely no risk in a financial review if Amex increases your credit limit. They like you, your profile, and want you to have a higher limit because they trust you with it. I’d say use it, give them a call and withdrawal your request for no auto clis, hell, I’d ask for one imho. But that’s me.... 🙃