Question regarding Amex 3X cli strategy

[cobbson]

I was just instant approved on-line for an Amex BCE card. This is my first AMEX card so I am quite happy . I read the "Definitive Amex 3XCLI Guide" here on myFICO. It says in big red letters  "Amex clearly dislikes carrying balance" when one is shooting for these cli's which seems reasonable and understandable. It also mentions keeping utl low on the Amex and other cards during this period.

My question is about what does Amex prefer as far as paying off balances, paying in full before statement cuts so balance on the statement is -0-, or letting a small balance remain and paying in full after the statement cuts.

Does anyone have any experience with this one aspect of the 3Xcli or am I overthinking it and it doesn't really matter?

Thanks in advance for your thoughts,

Cobbson

[burghpa]

I recently got approved for Amex Everyday , i would like to know as well, I read thru  3x CLI guide as well.

This is how i understood, we should wait for Amex to cut a statement with some amount (no point in paying before due amount/date), then pay off that amount in full  before the due date.  

Pay the amex before cutting statement. 

So amex will be reporting it to zero, and your other 1 card should be reporting small amount (1-9% util),  rest of the cards should be reporting zero as well.

Waiting for others to chime in.

[cobbson]

---

@burghpa wrote:

I recently got approved for Amex Everyday , i would like to know as well, I read thru  3x CLI guide as well.

This is how i understood, we should wait for Amex to cut a statement with some amount (no point in paying before due amount/date), then pay off that amount in full  before the due date.  

So amex will be reporting it to zero, and your other 1 card should be reporting small amount (1-9% util),  rest of the cards should be reporting zero as well.

Waiting for others to chime in.

---

If you wait until after the statements cut, AMEX will report the balance on the statement, not zero. 

[burghpa]

---

@cobbson wrote:

If you wait until after the statements cut, AMEX will report the balance on the statement, not zero. 

---

Thanks for the correction, so we have to pay before the statement cut to report it to zero then.

[Fico2Go]

PIF before or after statement determines if your balance gets reported or not. But approval of the client will base on usage of account more than the method of your payment.

My wife was recently approved with about a year credit history. She went over limit on Amex a couple times and she hadn't PIF in a few months. Her utility has been over 35% since recent ST by Amex from three months ago.

All she did was used her card and paid > 10% of current balance.

[Marcos8]

People have had success using both payment methods. I personally let my Amex report full balances every statement and then PIF. Had zero trouble getting my 61 and then 180 day CLI approvals. They will utilize a soft of undetermined age for your CLI requests though so still be conscious though of your overall picture. If you let Amex cut with a balance makes sure some other cards are cutting at zero... or vice versa. And still others have had CLI success when multiple accounts were showing balances anyway. Its all about your profile and usage and that specific to you. YMMV

[takeshi74]

---

@cobbson wrote:

I read the "Definitive Amex 3XCLI Guide" here on myFICO. It says in big red letters  "Amex clearly dislikes carrying balance" when one is shooting for these cli's which seems reasonable and understandable. It also mentions keeping utl low on the Amex and other cards during this period.

My question is about what does Amex prefer as far as paying off balances, paying in full before statement cuts so balance on the statement is -0-, or letting a small balance remain and paying in full after the statement cuts.

---

That's just a broad generalization that is frequently bandied about around here.  People can provide anecdotal evidence that really won't prove anything one way or another.  Balances and payments aren't the only factors that matter for CLI's regardless of creditor despite how many threads ask about balances and payments with regard to CLI's.  FWIW, I've received CLI's with AmEx while carrying balances and never paid prior to statement end.  However, that doesn't mean that everyone will or that no one would benefit from not carrying a balance or reducing reported utilization.

It's really not a black-and-white matter as "balance=denial" but "no balance=CLI".  If you want the best possible odds then you probably don't want to carry a balance and you want utilization optimized (only 1 balance reporting at 10% or less) when you request the CLI.

I'd suggest just keeping in mind the general 30% max utilization recommendation (and rule of thumb that lower is generally better) but that really applies in general and isn't specific to AmEx.

---

@cobbson wrote:

Does anyone have any experience with this one aspect of the 3Xcli or am I overthinking it and it doesn't really matter?

---

IMO you're putting too much weight on this one thing but it does play a part.  Any creditor will prefer to see lower utilization and utilization is the second biggest factor with credit scoring (Amounts Owed in the link):

http://www.myfico.com/crediteducation/whatsinyourscore.aspx

 AmEx doen't need to refer to your reports to see your utilization with their own accounts so it really doesn't matter if you pay prior to statement end or after.  It may help, however, with other creditors when AmEx looks at your utilization on their accounts.

Use your AmEx reponsibly, optimize your utilization and then request the CLI.  If denied you can try again in 90 days and work on the reason(s) for denial in the meantime.

[cobbson]

---

@takeshi74 wrote:

---

@cobbson wrote:

I read the "Definitive Amex 3XCLI Guide" here on myFICO. It says in big red letters  "Amex clearly dislikes carrying balance" when one is shooting for these cli's which seems reasonable and understandable. It also mentions keeping utl low on the Amex and other cards during this period.

My question is about what does Amex prefer as far as paying off balances, paying in full before statement cuts so balance on the statement is -0-, or letting a small balance remain and paying in full after the statement cuts.

---

That's just a broad generalization that is frequently bandied about around here.  People can provide anecdotal evidence that really won't prove anything one way or another.  Balances and payments aren't the only factors that matter for CLI's regardless of creditor despite how many threads ask about balances and payments with regard to CLI's.  FWIW, I've received CLI's with AmEx while carrying balances and never paid prior to statement end.  However, that doesn't mean that everyone will or that no one would benefit from not carrying a balance or reducing reported utilization.

It's really not a black-and-white matter as "balance=denial" but "no balance=CLI".  If you want the best possible odds then you probably don't want to carry a balance and you want utilization optimized (only 1 balance reporting at 10% or less) when you request the CLI.

I'd suggest just keeping in mind the general 30% max utilization recommendation (and rule of thumb that lower is generally better) but that really applies in general and isn't specific to AmEx.

---

@cobbson wrote:

Does anyone have any experience with this one aspect of the 3Xcli or am I overthinking it and it doesn't really matter?

---

IMO you're putting too much weight on this one thing but it does play a part.  Any creditor will prefer to see lower utilization and utilization is the second biggest factor with credit scoring (Amounts Owed in the link):

http://www.myfico.com/crediteducation/whatsinyourscore.aspx

 AmEx doen't need to refer to your reports to see your utilization with their own accounts so it really doesn't matter if you pay prior to statement end or after.  It may help, however, with other creditors when AmEx looks at your utilization on their accounts.

Use your AmEx reponsibly, optimize your utilization and then request the CLI.  If denied you can try again in 90 days and work on the reason(s) for denial in the meantime.

---

My thanks to all of you for taking the time to respond to my questions.

BTW, I checked out the effect of adding this one credit card on the FICO simulators on this site. Looks like EQ and TU will.take about a 20 point score hit and EX will take a 30 point hit which is where AMEX actually did the HP, but the simulation doesn't know that so I don't think my scores will take that much of a hit. Will just have to wait and see.

I expect a short FI CO Score recovery period.

Cobbson

[Fico2Go]

Fyi, I described how my wife who append for Amex a month before me received auto click from Amex last month. She carried a balance the past few months and high util. Above 40%.

She got a month after receiving auto click she requested 3 click and was instantly approved.

Well yesterday the same happened to my accounts. Just one day before my 6th statement due date I received auto cli.

Let's hope this trend continues when I request 3 cli in a month or two

Currently my util is 48%. Carried balances for past two months. 5 of 7 cards have balances.