In Leiu Of The Recent AMEX CLDs Lately...

[FinStar]

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@Anonymous wrote:

AMEX CLDs?  I have not heard about any.  You have links to the threads?

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https://ficoforums.myfico.com/t5/Credit-Cards/AMEX-credit-limit-decrease-Updated/m-p/5547096

https://ficoforums.myfico.com/t5/Credit-Cards/Amex-chopped-CL-50/m-p/5542847

[kdm31091]

Honestly I don't use anywhere near my limit anyway so while a CLD would be annoying, I would understand why they did it.

In general, I find it not useful to stress over it. Worst case scenario you get a CLD at some point after requesting an increase which may or may not have happened anyway, so what's the point of worrying about it? I would use caution in asking for excessive or unnecessary CLIs though, relative to your spend, unless a possible CLD doesn't bother you.

The general population is probably not requesting 3x CLIs and are likely sticking with the limit they were assigned unless it is auto increased. My guess is Amex sees too many people going for huge limits that aren't justified with the spend level and simply wants to reduce their exposure.

[CreditInspired]

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@Anonymous wrote:

My last two Amex approvals were at 30k each. I don't see the need for more than that.  I spend around 6k a month on cards but pay off bi-weekly.  I mean other than to tell people on here I have a 60k limit on a card I don't the point to ask for an increase.  The interest rates on the cards are so ridiculously high that it would make zero sense to ever carry a balance.  Also if they decrease my limits I wouldn't care.  

High limits are great the first time you get them. But once they are the norm high limits lose their appeal. Really unless you are early in a rebuild you should never be in a position where a CLD is going to hurt you. 

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+1

For me, you have hit the nail on the head. 

[CreditInspired]

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@Anonymous wrote:

AMEX CLDs?  I have not heard about any.  You have links to the threads?

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It’s about 4-5 threads over the last week or so. Search AmX CLD. 

Edit: I see @FinStar provided the links. Thanks 😁

[Caught750]

My EDP is at $12k currently. I’ll likely ask for an increase to $20-24k and move some of it to my Hilton card putting them both over $10k. At that point I won’t ask for more as I don’t need it right now. I’d have $25k, at the most, exposure (besides my gold card) with just sub 6 figure income.

[Anonymous]

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@K-in-Boston wrote:

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@Anonymous wrote:

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@K-in-Boston wrote:

That’s a bit of a broad statement. I’m in no stage of any rebuild, and a CLD on certain cards would certainly hurt me.

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Why would it hurt you?  

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Cash flow, potential loss of my preferred rewards, increased utilization.

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You have 3 Delta cards with 69k of total limit. If they decreased your limit by 20k total you could move all the Delta limits but $500 to one card and be back at 48k on one Delta card.  I dont'  think it would really affect you.  And honestly why would they decrease the limits on people who are using their cards a lot with good credit and income?

[xaximus]

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@Anonymous wrote:

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@K-in-Boston wrote:

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@Anonymous wrote:

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@K-in-Boston wrote:

That’s a bit of a broad statement. I’m in no stage of any rebuild, and a CLD on certain cards would certainly hurt me.

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Why would it hurt you?  

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Cash flow, potential loss of my preferred rewards, increased utilization.

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You have 3 Delta cards with 69k of total limit. If they decreased your limit by 20k total you could move all the Delta limits but $500 to one card and be back at 48k on one Delta card.  I dont'  think it would really affect you.  And honestly why would they decrease the limits on people who are using their cards a lot with good credit and income?

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I think the CLD's are more towards people that have high limits and aren't using the limits whatsoever. For someone to have a 20K card and use 500 a month on it, is a waste and there would be no point in having a 20K limit. In @K-in-Boston situation where a card with 25K on it, and gets used around 10-20K a month, this would most definitely be detrimental. It's a broad statement that CLD won't hurt because in some situations it can. I think the simpler way of putting this is, CLDs are going to happen to those that don't actually utilize their high limits. For those that do, it's always a possibility but a much lower chance of it happening. For someone like @K-in-Boston where the card usage is high, AmEx most likely won't do anything, they may do the opposite and possibly increase the limit instead. For others, it may be CLDs.