Would Amex CLD for low usage?

[SouthJamaica]

If I use an American Express credit card regularly, but at a very low utilization, would they reduce the credit limit, assuming all other things are OK?

[Anonymous]

Nope.

[Anonymous]

I have had my Blue for eons and I rarely use it. They have never touched my $10,500 credit line; either to raise it or to lower it. That doesn't mean other factors won't cause them to CLD us in the future if the economy has another downfall. For now though, you should be fine. They are pretty easy, easy like Sunday morning and Capital One. 

[SouthJamaica]

Thanks, Nixon and Co_Native

[kdm31091]

No one has a crystal ball but generally you don't hear of Amex doing this very often

[accidentalpancake]

AmEx is only likely to do it if they have a reason to be proactive. They are one of the companies that would rather make sure that you are happy and have as much available credit as they're comfortable with, regardless of whether you're using it.

That's one of the bizzare things about some companies. If you reduce someone's CL because they don't use the card often, does that make them more or less likely to then begin using it in the future? I'd argue less likely, depending on the overall impact on CL and utilization. If I expect to make a large purchase, even if I'm going to PIF, I'm more likely to use a high limit card to minimize utilization impact in the case that it reports before PIF occurs. Besides, if I'm not using my CL, there's no impact to the company extending the credit. There's always a measure of risk that I might charge up $200k across all my accounts and move to Bolivia suddenly, but it's not very likely.

AmEx seems to understand this. Barclay's does not.

[Anonymous]

If I knew exactly how Cenurion and Barclays reinvest their money globally, would be able to work for a competitor find the niche and be very successful. They operate completely differently and what they give and take away to the end user follows their own philosophies. Apparently with Barclay the low man on the totem pole is much more important.
I've said it multiple times Barclays act like a jealous girlfriend or jealous ex-girlfriend. When you have new accounts before Barclays or get them after you start your relationship… she go CRAY

[kdm31091]

Lenders only have so much money to allocate. Someone who never uses anywhere near their limit becomes a candidate for CLD with many lenders because they can then allocate the money to someone else. Not saying I always agree with it but that's the viewpoint of the lender

[Anonymous]

Highly dependent on history with the bank.

Barclaycard is especially notorious for this, but the OP is asking about AX. -- I've personally been stringing along a Blue Sky with a 24K limit 2 for years with no sign of a CLD or even an attempt at one. I put the occasional CCT trial for $1 on it.

[Revelate]

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@Anonymous wrote:
Highly dependent on history with the bank.

Barclaycard is especially notorious for this, but the OP is asking about AX. -- I've personally been stringing along a Blue Sky with a 24K limit 2 for years with no sign of a CLD or even an attempt at one. I put the occasional CCT trial for $1 on it.

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Think it's more dependent on the bank and their financial picture as KDM alludes to (fractional reserve banking and all), not sure user history really factors that much as it seems unlikely anyone would just start using a card heavily out of the blue unless their other cards got taken away from them... and is that the sort of consumer you really still want at that point?

I doubt we'll see CLD's from Amex anytime soon unless their financial picture is a lot worse this year than expected.