35 Point Drop from Amex "Revolver" - aka NPSL!

[Anonymous]

So, I put lots of things on lots of cards, and pay them off a few times a month. When I got my Amex Delta Gold (that I shouldn't have applied for at the time), they only gave me a $1k limit, and I have an authorized user. Well, none of my Amex cards ever get declined (I put about $40k per month on my business Platinum, and various misc amounts on the other personal ones), and I know others have said that all Amex cards can technically be NPSL depending on your relationship with Amex, but I don't even try to put charges through that are bigger than the limit, and I've never once pushed the "check spending ability" button. Well, I used the card a few times last month, and my authorized user used it for a few bigger transactions I wasn't aware of that amounted to about $1600 by the time the statement cut and before I had noticed, so that I could have otherwise paid it off.

Anyway, the statement amount posted to my credit reports, and because it was $1600 on a card that's supposed to have a $1000 limit, my scores went down about 35 points with a 157% utilization on that card!

I immediately panicked and paid every card I own down to a $0 balance, and while I'm happy they never declined any charges, pleeeeeease tell me my scores will jump back up next month if I keep everything paid down.....

[Anonymous]

They should.

[inthewoods]

No worries, it’ll recover fine.

[Anonymous]

The whole random "soft pull" by other lenders just worried me for a min. But I suppose they would see it's only one card, and an Amex, and know that it's actually probably a good thing because they trust me? Or maybe it would look like I don't pay my bill and that's why it was over the limit. Anyway, what a drag to log in and see your scores drop by 35 points!

[CreditCuriosity]

Fico scores have no memories w/regards to this.  When it shows up next month paid you will recover your points

[TRC_WA]

You'll be fine OP.

I let $4800 report on Sallie Mae last month... lost 6 points.  I paid it off and then ran up $1400 in charges that reported the other day... got the 6 points back.

Contrary to rumors floating around here at myFICO the world will not end if you let a CC report a balance.

The $4800 balance was a Barclays card too... they haven't closed my account or CLD me either.

The entire 1-9% reporting game is totally unnecessary unless you are planning a big (car, house) purchase in the next few months.  Why some people get all OCD about it I have no idea.  If anything it doesn't look good to let your cards report $0 balances all the time... because if you ever do run up a big balance you have no history of being able to pay it off and THAT might spook your lenders.

My $0.02.

[Ghoshida]

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@TRC_WA wrote:

You'll be fine OP.

I let $4800 report on Sallie Mae last month... lost 6 points.  I paid it off and then ran up $1400 in charges that reported the other day... got the 6 points back.

Contrary to rumors floating around here at myFICO the world will not end if you let a CC report a balance.

The $4800 balance was a Barclays card too... they haven't closed my account or CLD me either.

The entire 1-9% reporting game is totally unnecessary unless you are planning a big (car, house) purchase in the next few months.  Why some people get all OCD about it I have no idea.  If anything it doesn't look good to let your cards report $0 balances all the time... because if you ever do run up a big balance you have no history of being able to pay it off and THAT might spook your lenders.

My $0.02.

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Agree. Barclays scare may be a bit overrated. I carried about 80-90% balance with them for about 3-4 months; they didn't blink an eye. True, the CLI came the moment I paid it all down, but they didn't balance chase me. Sometimes that kind of stuff does happen, but the CCCs do want us to spend.

[taxi818]

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@Anonymous wrote:

So, I put lots of things on lots of cards, and pay them off a few times a month. When I got my Amex Delta Gold (that I shouldn't have applied for at the time), they only gave me a $1k limit, and I have an authorized user. Well, none of my Amex cards ever get declined (I put about $40k per month on my business Platinum, and various misc amounts on the other personal ones), and I know others have said that all Amex cards can technically be NPSL depending on your relationship with Amex, but I don't even try to put charges through that are bigger than the limit, and I've never once pushed the "check spending ability" button. Well, I used the card a few times last month, and my authorized user used it for a few bigger transactions I wasn't aware of that amounted to about $1600 by the time the statement cut and before I had noticed, so that I could have otherwise paid it off.

Anyway, the statement amount posted to my credit reports, and because it was $1600 on a card that's supposed to have a $1000 limit, my scores went down about 35 points with a 157% utilization on that card!

I immediately panicked and paid every card I own down to a $0 balance, and while I'm happy they never declined any charges, pleeeeeease tell me my scores will jump back up next month if I keep everything paid down.....

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Of course they will. utilization has absolutely no memory. not only will scores bounce back. but will be where they would as growning anyway. so its not really a issue.

[Anonymous]

So let's say I want bigger limits with the cards... Obviously they are letting me charge past my limit... Wait until next score next month? Or will Amex realize it's their card that caused the problem? Also, I'm reading 61 day and amount you want to request has changed... Ask for CLI on the small limit card they let me charge higher balances on, or ask for CLI on the card with the highest limit and later call and spread the limits around?

[NRB525]

Any CL on an AMEX Revolver must be on that same card for 13 statements before it can be moved to another card.

If you want a higher limit on the Delta, ask for the CLI on the Delta. Or don't. I ran my Delta card up to near the $2k limit, this was after a year of regular PIF usage, and they auto CLI to $3k. You may not want to wait that long, but with the PIF it might be worthwhile to wait a bit and see what they do, if they give you an auto CLI. Then your base for the CLI request is higher, and there is no additional wait time.

At the very least, I would continue to charge up $900 on the Delta card then PIF because that is going to lead to good things. Don't stop using it now!