Re: Paid off AMEX to rebuild my credit. Limit increased?
Inferred in the posted scenario is that the debt was delinquent, and was assigned for collection when it was paid.
Delinquent credit cards that have become seriously delinquent, such as by taking a charge-off or referring to a debt collector, are almost always closed by the creditor at or before that time. Closing of a credit card means the creditor has terminated the ability of the consumer to make additonal charges, and thus increase the debt.
The amount of "available credit" is the difference between the credit limit on the card and its current balance.
It is not a statement of the current balance, and thus does not reflect any credit being given.
After you pay a collection,the current balance on both the collection and original creditor account would be reduced to $0.
If the card is closed, then you effectively no longer can make charges, and thus there is no available credit.
It is likely that the creditor continued, even though the account was closed to further charges, to report the prior credit limit.
The available credit that was then stated was likely the difference between the current balance and the prior credit limit.
That is both academic and meaningless if the account is closed, as you would have no available credit.
Does your report continue to show a credit limit on the card?