No Revolving Debt with AMEX

[TULO30]

I have read posts here about how AMEX views its customers with revolving debt.  I currently have a credit score of 727 and have a 3K balance on my AMEX Blue on a limit of $6,500.

Can someone tell me how this is viewed by AMEX and if it is view negatively what are some of the ways it will impact my AMEX Blue?

Thank you!

[Anonymous]

Do you make more than the minimum payments? How long have you been revolving for?

[haulingthescoreup]

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@TULO30 wrote:

I have read posts here about how AMEX views its customers with revolving debt.  I currently have a credit score of 727 and have a 3K balance on my AMEX Blue on a limit of $6,500.

Can someone tell me how this is viewed by AMEX and if it is view negatively what are some of the ways it will impact my AMEX Blue?

Thank you!

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You just want to be reducing it briskly. Don't make only minimum payments for month after month.

We've had members here whose accounts were frozen, and they had to fax in a lot of financial records to prove their claimed income, and then sometimes had their CL's reduced. Others didn't even get that: they just logged on one day and found that their CL was suddenly about $500 higher than their current balance. And every time they made a payment, their CL was lowered again. This is called "chasing balances," and it generally means that they want you gone.

So carrying a balance over 3 or 4 months is probably OK if you're paying it down in big chunks. So if you had a $1200 balance, pay $400/month over 3 months or $300/ month over 4 months. Their cards seem to work best for areas that you would have to pay for anyway, daily and monthly expenses, plus work expenses.

We do have members who carry balances and have gone through F/R's (financial reviews) and survived, and still carry balances. It's just pretty unnerving if it happens to you.

I don't carry balances period, so if I ever get a "revolver" in addition to my Gold charge card, it won't be an issue. I always preach at my kids that if you have balances on your credit cards, you don't have credit, you have debt. I have lots of unused credit --it's one of my forms of financial insurance.

[Anonymous]

If you don't have a plan to pay the balance off over the next few months, I'd suggest transfering it to another card. My co-worker got FR'd by Amex last week. She had been paying a little over the minimum on her Omptima card for 6 months. Her credit was otherwise excellent, and no other CC balances other than the Amex. She survived the FR, and was able to keep her CL intact, but it was a bit of a hassle, and a shock.

[Anonymous]

Well I will tell you about myself and I have read all the stuff about AMEX as well. I got my AMEX blue with a $10K limit last year and BT close to 9K from all other cards to one card because the interest rate was really low.  I pay more than the min every month and then some.  I have their gold rewards plus, green charge, optima plat ($25K credit line/$0-Balance), Clear ($25K credit line/ $0-Balance) and of course the blue with a $25K credit line.

I have been through a FR and had no ill effect.  I have not had my credit lines reduced or no drama from AMEX.  I have no problems with them and use my gold reward card from time to time.

I am working to pay off my Blue card now.  But it is what it is.  I like AMEX and they are nice to deal with.  I have read the horror stories but I can't relate.  I have ran a high balance with them for over a 1 year!!  As you can see my credit lines have increased!  I started with $10K on all of my credit cards and now up to $25K per card.  Clearly if they had a problem with me running a balance they would have shut me down.

As for problems.... I had my hubsand forget to pay a bill that landed on my credit report as a collection account,  a collection account end up on my credit report that was not mines, etc.  Every bad thing you could think of beside a BK happen.  I just knew AMEX would take my cards after reading this board. 

**EDIT** I forgot..AMEX did lower one of my limits but I forgot which card.  I think it was lowered by $3K but when this bogus collection account came off, my limit was brought  back up to $25K.  I never did get knocked down to $500.  I probably would have lost my **bleep** mind. LOL

I still carry my plat and gold cards....When speaking with a rep with AMEX about an issue I had with Equifax..she mentioned they pay more attention to how you handle your other creditors... I believe that to be true!  I do know of people who have lost their cards and limits based on how they paid other cards.  I think that sucks but that's their policy..

I was able to remove those negatives from my TU report, so now I have no baddies.  Which seems to be the report that AMEX seems to use now a days for me.

I think AMEX is dfferent for everyone.... case by case.  Hopefully they will treat you right!!

Message Edited by ragcajun on 05-23-2008 03:01 PM