Trying to figure out a strategy to get away from AMEX. Experts, can you please help?

[Anonymous]

Let me start by saying I used to be a credit nightmare.  I used plastic for years while simultaneously wearing blinders. I was in denial of my debt and didn't know how to get out of the hole, so I just got in deeper.

I have a large amount of revolving debt (currently *gasp* 38K).  I made a pledge 2 years ago to face it and have made some strides.  I don't have a lot of $ to throw at the debt but I created a DOLP chart and have slowly been picking away at things. We also don't ever use plastic now unless we can transfer money from our checking right that moment to the card (ie, booking a hotel, etc. we use the card and then pay it immediately on the spot from checking).  So I'm not accrueing new debt, I'm just swimming in the old.

I used to be in the high 700s before Amex started playing with me.  Now that they're chasing my balance I guess I look undesireable to other lenders because nobody's making offers and they haven't since about 2007.

So my quandry.  I want to take the business away from Amex.  I lose sleep over this chasing game.  I used to have a $25K line with about 10K on it.  I was picking away at it.  Then they CLD and starting chasing.  Now every time I get ahead they CLD down to just a few $ over my balance.

I have 4 other accts (plus my husband has a few) that have enough available cred and BT offers to move the money away from Amex.  But if I do this, will it make the utilization change?  I assume Amex will close my acct if I moved it.  Would that mean that, even though I have the same debt, it'll show in different proportions and fudge my fico even more?

I belong to a credit union and have an installment loan that is down to $2k. When I took this loan I was a golden customer, but now, not so sure.  Should I wait for that to be paid and then re-apply and see if I can get 10K to move the amex to them?  ie, moving revolving to installment, would it help?

I am trying to figure out which way to head, and I'm a little lost and overwhelmed.

[Anonymous]

Seems to me the best way to fight AMEX at this point is pay them as little as possible and pay down everyone else as fast as you can so they don't CLD you. You have to ask yourself if you want one card(amex) maxed out. or pay amex and have all others maxed out. Pay amex but I would pay them last. IMHO I'm sure others will chime in!

[rom828]

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@Anonymous wrote:
  Pay amex but I would pay them last. IMHO I'm sure others will chime in!

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I couldn't agree more!    Amex is already chasing...don't risk that happening with the others!!

I'd do just as so-con says.....pay Amex last....and pay the minimum.  Throw everything  else at the others. 

We're doing exactly that  after they CLD DH's  Delta card.  The reason:  balances too high on other cards.  He has 3 cards and only 1 is even approaching 30% so go figure!  Overall util is 21% and going down.  And they didnt change his Gold...it's still no pre-set limit.  Really think CLD may have been because he's only used the card a couple of times   The last time was for a hospital co-pay and he used it just to use it.  Maybe they're afraid he's sick and won't pay!   It was actually non-life threatening toe surgery....though DH says after going through it that people have probably died feeling less pain! 

But we decided if that's how they wanna play, and they're so worried about the other cards' balances, we'll pay all those down first and instead of paying the Delta off in a month like we'd planned on,  we'll let it ride for a few and throw the diff at the others.

Sorry to hear you're going through this, but I'm sure if you read about all the Amex drama on this forum, you'll surely find you're not alone!!

[Anonymous]

Agreed with above to an extent.  I would not BT unless you can do so at a much better rate and with capped fees.  I think you are better off taking what a BT would cost and using that money to pay down the balance (unless you get a very good BT offer). 

Here is a strategy if you are willing to take a little risk - I would recommend if AMEX is a high APR and you have a lower APR card that you start charging that card for your monthly purchases and you start charging everything.  Then pay the minimum on that card and use your now freed up cash to pay AMEX off ASAP. If your monthly chargeable expenses are 1-2K you would quickly flip AMEX bill to other CC bill with no BT fees.  You would save interest on the reduced APR, which you shoud immediately use to further reduce your debt.  Finally if the lower APR CC give you rewards, you might generate some additional cash for principle reduction.  Obviously you need a lower APR card with a decent CL to make this work

This would hurt your FICO short-term but I think it would help you to rebound faster and stronger as well as save you money overall.  However to do this you have to not fall back into old habits.  Also you have to forget your FICO for a few months or longer as you will show a higher utilization as AMEX keeps CLD'ing you.  I would consider calling them any telling them you can/will pay more tham minimum if they will stop CLD'ing you, but you won't if they will.

Don't lose sleep over the chasing game.  Only lose sleep over what you can reasonably expect to control. 

[Anonymous]

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@Anonymous wrote:

I would consider calling them any telling them you can/will pay more tham minimum if they will stop CLD'ing you, but you won't if they will.

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Calling them ain't gonna do diddly, but thanks for that suggestion.  This Amex (I should have mentioned) has a very low apr (it was a balance transfer offer with a fixed low apr, life of balance).  I always pay more than minimum, I have written letters, I have reported to better business bureau (just because it was FUN!) and in my opinion, they're not going to work with me in the slightest.  Each letter they send explaining the new lower credit line they give a new pathetic reason.  They've branded me with a Scarlett letter and they don't want me anymore. That's fine, I don't want them!! 

Thanks for the suggestions everyone, I have moved them on my spreadsheet to the bottom of the pile.  I am going to pretend they're not a part of my life.  I'll send all our extra $ to everyone but them.

Have a great day!!

[oracles]

Hi Cheezy

Because it has the lower apr, definitely pay the other cards first

[Anonymous]

Thanks Oracles.  I think because I feel so much disdain for AMEX that I just wanted to stop paying them $ in interest every month, but I realize that I have to just suck it up and play through.  I just hope my other cards don't see the 99% utilization on the AMEX as a sign that I am in hot water and start doing the same.