AMEX credit limit decrease (Updated)

[06GTS197]

Hi, just logged in to Amex and noticed my limit got cut from 30k to 15k. Nothing on my profile has changed. The only thing I can think of is I haven’t used the BCE in a month because another card has been serving my grocery needs for cash back.

Any idea why Amex would do this?

[Anonymous]

it does seems a trend now, this is the 5th reported case in the past week?

Amex is now probably in line with CL from other lenders.

[CreditInspired]

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@06GTS197 wrote:
Hi, just logged in to Amex and noticed my limit got cut from 30k to 15k. Nothing on my profile has changed. The only thing I can think of is I haven’t used the BCE in a month because another card has been serving my grocery needs for cash back.

Any idea why Amex would do this?

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Oh no, another one bites the dust (so-to-speak). I think you’re the 4th or 5th one that this CL slashing has happened to in as many days. 

Was the other card another AmX card?

Wow, just one month of nonuse and AmX is cutting limits. Now this is worrisome. 

[FlaDude]

Looks like they are doing this quite a bit lately.

https://ficoforums.myfico.com/t5/Credit-Cards/Amex-chopped-CL-50/m-p/5542847?collapse_discussion=tru...

https://ficoforums.myfico.com/t5/Credit-Cards/AMEX-AA-Reversal/m-p/5542949?collapse_discussion=true&...

[06GTS197]

Yea 1 month. I’m a little upset about the cut. Gonna call them tomorrow and ask for it back.

[pinkandgrey]

Hmm this seems to be happening a lot lately. Sorry about that! Hopefully you can rectify the situation

[wasCB14]

OP, how much spend would you put on the card in a busy month?

[Chelow]

I'm sorry hear that Op !  How long have you had this card for?  

Hopefully you can rectify that with a phone call tomorrow.! GL

I hope this new "trend" doesn't affect the 3x 61days CLI system. 

[Anonymous]

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@06GTS197 wrote:

Any idea why Amex would do this?

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100% because they feel you aren't using a significant portion of the $30k limit they've given you.  My question to you is how much use you've been giving the card over the past 6-12 months?  I know you said you had a light/$0 month due to using another card (likely Discover, I did too) for groceries, but what about the months before that?  Can you give us the average spend you put on the card monthly, but also and perhaps even more important the single largest spend you've put through the card in any given month in the last 12 months?

[Kforce]

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@Anonymous wrote:

it does seems a trend now, this is the 5th reported case in the past week?

1 ) Amex is now probably in line with CL from other lenders.

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No one likes to see a reduction, however when looked at from the the side, this should not be shocking.

Amex has been overly generous with CL increases and inflated CL's for a long time.

One reason they are so popular and recommended for every new user.

3x CL increases at 90+ days, higher than average CL's on cards !

They have decided that they need to reverse some of the inflated limits they have issued.

1)

Still at least 50% higher than OP's second largest CL.

The limit reduction puts the Amex at 4.5 times other cards average CL, started at 9 times CL.

$15,000 is a good CL for a capped grocery card.