Seeking AmEx CLI advice

sterlingrose1 · ‎08-21-2015

Hello all,

I'm asking about my chances for a CLI on my Am Ex cards, or whether you guys think I should hold off for a couple months.

Background: I am in the garden and working on my scores for a future home remodel in 2016, followed by selling in 2017 and moving into another home purchase. This year I've gotten quite a few new cards and am strategically carrying balances, transferring balances to better rates, and paying off higher interest balances. Result: lots of inquiries and shifting utilization have put my scores on the roller coaster. (At the same time, I have had several significant CLI's on other cards, and I got a raise and my income has gone up a bit.)

When I first got my 2 Am Ex cards, I applied for CLI and was denied. I'm eligible to apply again tomorrow and am wondering if it's worth it to try; my EX score has been the least volatile of the three, but it's currently below where it was when I originally got the cards. (I think it was at 683 when I was approved, and this morning it is at 667.) I have paid off one of my AmEx cards in full every month, and the other one I have carried as high as 70% utilization one month but paid in full at the last statement. Both cards are at a 0 balance now.

Sidebar: one of these cards is a Costco, and it only has a $2000 limit. From my own analysis & no inside info whatsoever, I am pretty confident AmEx is going to PC us into another card, and as we already heard, Citi will also buy the portfolio and issue cards. For that reason I'd like to get my limit on that card up as high as I can while I still have the time.

What's the advice from you all? Apply tomorrow, or cool my jets?

takeshi74 · ‎08-21-2015

First off, we can't tell you your odds. We're not AmEx underwriters. We can make educated guesses based on the standard credit and risk factors.

Regardless of that (and I admit I didn't go into reading your details before replying), IMO it's always worth requesting a CLI with AmEx. The decision is based on the most recent SP that AmEx performed so there's no HP. Even if denied you can request again in 90 days and you have a list of denial reasons to use as a starting point on what to work on with your credit profile.

@sterlingrose1 wrote:
I have paid off one of my AmEx cards in full every month, and the other one I have carried as high as 70% utilization one month but paid in full at the last statement. Both cards are at a 0 balance now.

Ok -- now I've taken a look but it's not just your AmEx accounts that matter. For any creditor your credit and income are the primary factors that will determine what you qualify for versus the creditor's underwriting critieria. If you want our feedback you need to give us a better idea of what's going on with your entire credit profile.

If your score is lower then when you applied then why is it lower? What has changed? What has improved? What has become worse? What's your revolving utilization like? What's keeping your scores down? Do you have derogs? Have you done any work to address them? If not, hit Rebuilding and carefully research as well as use other tools out there.

sterlingrose1 · ‎08-21-2015

Thanks for the quick reply! I realize I won't be getting guaranteed answers, but I know I'll get great advice.

I had 2 derogs when I was approved. One has been removed. The other one is a 30 day late that is almost 3 years old.

My payment history on all credit is perfect.

The only reason my scores are roller coastering now is new cards hitting my report, and my utilization going up and down as I have been transferring balances. (Example: I transferred a $667 balance from Macy's card to a 0% PenFed card, and the timing was such that they both reported the $667 so it looked like my utilization had increased). Overall my utilization is about 20%, and I have two cards that are 0% interest where utilization is over 50%. I have about 21 inquiries over the last 2 years, but at least 8 of them are mortgage or car loan related.

Anonymous · ‎08-21-2015

21 inquires is a LOT in my opionion in 24 months.

But it doesnt hurt to ask. And AMEX will counter offer so thats good!

Request a CLI and see what happens. If denied its okay. No the end of the world and not a wasted hard pull.

I would stop applying for cards that result in hard pull and work on getting utliziation down

Best of luck! Let us know!

I plan to do my 3x CLI in 8 days!!!

Anonymous · ‎08-21-2015

Why would you assume Amex would automatically PC that TE card? Its going to be converted to the citibank version, it would be up to you to call and PC it or add another account to keep the relationship open...

Right?

sterlingrose1 · ‎08-21-2015

@Anonymous wrote:
Why would you assume Amex would automatically PC that TE card? Its going to be converted to the citibank version, it would be up to you to call and PC it or add another account to keep the relationship open...

Right?

Well, I wouldn't go so far as to assume, but I do feel reasonably confident - only based on my own research- for three reasons.

1. Am Ex is still issuing Costco cards, as far as I know.

2. I read an analysis that said the revenue from the TE card represents $80 billion a year for AmEx, and something like 70% of that is spent outside Costco. (Sorry I can't put my hands on the link right now, so I'm doing this from memory, but I think I'm remembering right). My personal non-expert analysis based on these facts s that AmEx would not want to lose that much business.

3. When I ask AmEx CSRs about the future of the TE, they always say the same thing in the same words, which are probably scripted - that AmEx will make an announcement about the matter when the effective date gets closer.

I deduce from these three factors that AmEx wouldn't want to lose $56 billion of business that is being done via the TE outside of Costco. I'm also deducing that the reason they are continuing to issue new TE's is because it is growing their business outside Costco by a pretty solid margin. I'm therefore guessing they will proactively try to retain TE cardholders with an offer a new product or by PC'ing us to an existing product with comparable terms without our having to be the ones to ask.

But I'm keeping my day job as I don't have a crystal ball and wouldn't know how to use one, and also big businesses act in mysterious ways... ;>)

Anonymous · ‎08-21-2015

I guess I don't see what the big deal is with the card. Using the fidelity Amex yields higher return at Costco. It's no different than me using double cash at Sams.

I feel it's a good easy choice for simplicity though.

sterlingrose1 · ‎08-21-2015

For me, the big deal is only that I have it in my wallet, and I don't want it to go away

Anonymous · ‎08-21-2015

Not sure what the odds of a CLI on your Amex are, but I did want to note one thing. When Citi takes over the portfolio, there is no guarantee that they will issue a card to existing TE users. If the cardholder does not meet their underwriting criteria, they will not issue a card.