Would deposit to Amex High-Yield Savings increase my Amex card limits?
Jun 12, 2010, 5:32 pm
#1
Original Poster
Join Date: Feb 2010
Location: Disney World
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Posts: 321
Would deposit to Amex High-Yield Savings increase my Amex card limits?
Has anyone opened up an American Express High-Yield Savings account with a recently advertised APY of 1.30%? I am curious if making a large deposit (six figures) to an Amex savings account would get Amex to increase my card limits. Has anyone opened up an Amex savings account and then observed changes to their card limits?
I have several Amex cards. Unfortunately, the limits on some of these are too low to be useful, even though I like the rewards and would use it otherwise. I have requested credit limit increases but this is maddeningly slow, and I seem to have requested enough of these increases that I am now on their double secret probation list for the next 6 months. I have enough taxable income each year to warrant higher limits but much of my income is variable so I suspect that is one reason why some of the limits are unreasonably low. I am considering opening up an Amex savings account because (1) 1.30% is a decent rate and (2) maybe it will help with my credit card limit problem.
I have several Amex cards. Unfortunately, the limits on some of these are too low to be useful, even though I like the rewards and would use it otherwise. I have requested credit limit increases but this is maddeningly slow, and I seem to have requested enough of these increases that I am now on their double secret probation list for the next 6 months. I have enough taxable income each year to warrant higher limits but much of my income is variable so I suspect that is one reason why some of the limits are unreasonably low. I am considering opening up an Amex savings account because (1) 1.30% is a decent rate and (2) maybe it will help with my credit card limit problem.
Jun 13, 2010, 9:47 am
#2
In memoriam
Join Date: Jan 2006
Posts: 4,020
IMHO, (this is a question I doubt anyone except those in power at Amex can answer with authority), no way.
IME, there is no connection between deposits and credit limits at the big card issuing card companies. All is separate, except, perhaps, if you really have a lot (way over a 100K, closer to a $million) and have a private banker connection.
You are, most likely, the "victim" of Amex's response to the credit crunch and its stupendous fears of not getting paid back--which you are not likely to be able to do anything about.
Perhaps it would be best to look for another issuer which has loosened up a bit lately. UAL cards from Chase or AA from Citi come to mind. Not quite as good as the Starwood Amex--if that is one of the cards you are talking about--but, what can you do with Amex--at least, right now ...
By the way, IMHO, 1.3% is not such a good rate.
IME, there is no connection between deposits and credit limits at the big card issuing card companies. All is separate, except, perhaps, if you really have a lot (way over a 100K, closer to a $million) and have a private banker connection.
You are, most likely, the "victim" of Amex's response to the credit crunch and its stupendous fears of not getting paid back--which you are not likely to be able to do anything about.
Perhaps it would be best to look for another issuer which has loosened up a bit lately. UAL cards from Chase or AA from Citi come to mind. Not quite as good as the Starwood Amex--if that is one of the cards you are talking about--but, what can you do with Amex--at least, right now ...
By the way, IMHO, 1.3% is not such a good rate.
Jun 13, 2010, 3:34 pm
#3
Original Poster
Join Date: Feb 2010
Location: Disney World
Programs: Fairmont Lifetime Platinum, Hyatt Globalist, AA Lifetime Gold
Posts: 321
IMHO, (this is a question I doubt anyone except those in power at Amex can answer with authority), no way.
IME, there is no connection between deposits and credit limits at the big card issuing card companies. All is separate, except, perhaps, if you really have a lot (way over a 100K, closer to a $million) and have a private banker connection.
You are, most likely, the "victim" of Amex's response to the credit crunch and its stupendous fears of not getting paid back--which you are not likely to be able to do anything about.
Perhaps it would be best to look for another issuer which has loosened up a bit lately. UAL cards from Chase or AA from Citi come to mind. Not quite as good as the Starwood Amex--if that is one of the cards you are talking about--but, what can you do with Amex--at least, right now ...
By the way, IMHO, 1.3% is not such a good rate.
IME, there is no connection between deposits and credit limits at the big card issuing card companies. All is separate, except, perhaps, if you really have a lot (way over a 100K, closer to a $million) and have a private banker connection.
You are, most likely, the "victim" of Amex's response to the credit crunch and its stupendous fears of not getting paid back--which you are not likely to be able to do anything about.
Perhaps it would be best to look for another issuer which has loosened up a bit lately. UAL cards from Chase or AA from Citi come to mind. Not quite as good as the Starwood Amex--if that is one of the cards you are talking about--but, what can you do with Amex--at least, right now ...
By the way, IMHO, 1.3% is not such a good rate.
Regarding the 1.3%, I thought it was a pretty decent rate for an account that does not require any minimum number of debit card transactions. I am not quite ready to try doing those types of accounts. Were you saying there are regular savings accounts yielding much better than 1.3%? I did not find any.
Jun 13, 2010, 4:00 pm
#4
In memoriam
Join Date: Jan 2006
Posts: 4,020
I prefer SPG, too. But, right now, I wouldn't try to get Amex to raise my credit limit--cause it ain't gonna happen.
I have a friend who has a very successful electronics consulting/systems biz. He runs a $mil or so through credit cards every year, has excellent credit. Amex offers him cards with $1000 line of credit. Others, $20K.
Just glad I got my Amex cards a long time ago.
As to interest rates, there are some better ones out there. Check the various sites that compile them. for example, http://www.moolanomy.com/1333/how-to...interest-rate/ or bankrate.com.
Personally, this is not the time to put any sizable amount in the bank.
I have a friend who has a very successful electronics consulting/systems biz. He runs a $mil or so through credit cards every year, has excellent credit. Amex offers him cards with $1000 line of credit. Others, $20K.
Just glad I got my Amex cards a long time ago.
As to interest rates, there are some better ones out there. Check the various sites that compile them. for example, http://www.moolanomy.com/1333/how-to...interest-rate/ or bankrate.com.
Personally, this is not the time to put any sizable amount in the bank.
Jun 14, 2010, 2:42 pm
#5
Join Date: Jun 2002
Location: California USA
Posts: 652
Has anyone opened up an American Express High-Yield Savings account with a recently advertised APY of 1.30%? I am curious if making a large deposit (six figures) to an Amex savings account would get Amex to increase my card limits. Has anyone opened up an Amex savings account and then observed changes to their card limits?
I have several Amex cards. Unfortunately, the limits on some of these are too low to be useful, even though I like the rewards and would use it otherwise. I have requested credit limit increases but this is maddeningly slow, and I seem to have requested enough of these increases that I am now on their double secret probation list for the next 6 months. I have enough taxable income each year to warrant higher limits but much of my income is variable so I suspect that is one reason why some of the limits are unreasonably low. I am considering opening up an Amex savings account because (1) 1.30% is a decent rate and (2) maybe it will help with my credit card limit problem.
I have several Amex cards. Unfortunately, the limits on some of these are too low to be useful, even though I like the rewards and would use it otherwise. I have requested credit limit increases but this is maddeningly slow, and I seem to have requested enough of these increases that I am now on their double secret probation list for the next 6 months. I have enough taxable income each year to warrant higher limits but much of my income is variable so I suspect that is one reason why some of the limits are unreasonably low. I am considering opening up an Amex savings account because (1) 1.30% is a decent rate and (2) maybe it will help with my credit card limit problem.
I know that you can secure a Corporate Card under certain conditions (You still need to meet the basic criteria.)
Jun 14, 2010, 6:01 pm
#6
Original Poster
Join Date: Feb 2010
Location: Disney World
Programs: Fairmont Lifetime Platinum, Hyatt Globalist, AA Lifetime Gold
Posts: 321
- There is a 6 month wait between credit limit increases. I had an increase recently on another Amex account so I am stuck until Oct 7. The wait period seems to be inflexible but if this really does apply to everybody, then I am dumbfounded. The rep essentially was saying that if I was Bill Gates and I had asked for an increase in April, and then I wanted to bump it by another $1k today, it would be no dice. If anyone has had actual experience to the contrary, feel free to chime in.
- The deposit into an Amex Savings account does not seem to have an impact on the limit decision. It certainly won't override the 6 month rule, according to the rep. The rep claimed the savings and the credit limit departments are separate. I offered to deposit 100x my credit limit in a savings account and let that account be used as collateral. The rep didn't seem to know what to make of that. She wouldn't say if it would help and was more interested in trying to transfer me to a rep in the savings acct department who coudl help me open up an account.
- Providing balance sheets and tax return data does not speed anything up. It wasn't clear to me if Amex would accept that info unsolicited. I offered several times during the call. The response was (in various forms): if you apply for a credit increase, Amex might ask for those supporting materials, which would then be factored into the decision.
Overall, I was disappointed I could not get someone with more flexibility to look at the details of the case. They sound hamstrung by their iron rules. I've never missed a payment, and have a long history with Amex, but that did not help me get out of their flowchart responses. I have had much better luck with Chase in getting a human who had leeway to look at the whole picture but unfortunately I don't love their reward programs. I was considering switching back to one of my Amex cards to use as my primary card but I guess I will continue with my non-Amex options.
Jun 15, 2010, 1:58 pm
#7
Join Date: Jun 2002
Location: California USA
Posts: 652
Well, I just spent 20 mins with Amex's credit limit department asking about this question. It was a pretty frustrating call because of the lack of real answers. Here's what little I could gather:
- There is a 6 month wait between credit limit increases. I had an increase recently on another Amex account so I am stuck until Oct 7. The wait period seems to be inflexible but if this really does apply to everybody, then I am dumbfounded. The rep essentially was saying that if I was Bill Gates and I had asked for an increase in April, and then I wanted to bump it by another $1k today, it would be no dice. If anyone has had actual experience to the contrary, feel free to chime in.
- The deposit into an Amex Savings account does not seem to have an impact on the limit decision. It certainly won't override the 6 month rule, according to the rep. The rep claimed the savings and the credit limit departments are separate. I offered to deposit 100x my credit limit in a savings account and let that account be used as collateral. The rep didn't seem to know what to make of that. She wouldn't say if it would help and was more interested in trying to transfer me to a rep in the savings acct department who coudl help me open up an account.
- Providing balance sheets and tax return data does not speed anything up. It wasn't clear to me if Amex would accept that info unsolicited. I offered several times during the call. The response was (in various forms): if you apply for a credit increase, Amex might ask for those supporting materials, which would then be factored into the decision.
Overall, I was disappointed I could not get someone with more flexibility to look at the details of the case. They sound hamstrung by their iron rules. I've never missed a payment, and have a long history with Amex, but that did not help me get out of their flowchart responses. I have had much better luck with Chase in getting a human who had leeway to look at the whole picture but unfortunately I don't love their reward programs. I was considering switching back to one of my Amex cards to use as my primary card but I guess I will continue with my non-Amex options.
- There is a 6 month wait between credit limit increases. I had an increase recently on another Amex account so I am stuck until Oct 7. The wait period seems to be inflexible but if this really does apply to everybody, then I am dumbfounded. The rep essentially was saying that if I was Bill Gates and I had asked for an increase in April, and then I wanted to bump it by another $1k today, it would be no dice. If anyone has had actual experience to the contrary, feel free to chime in.
- The deposit into an Amex Savings account does not seem to have an impact on the limit decision. It certainly won't override the 6 month rule, according to the rep. The rep claimed the savings and the credit limit departments are separate. I offered to deposit 100x my credit limit in a savings account and let that account be used as collateral. The rep didn't seem to know what to make of that. She wouldn't say if it would help and was more interested in trying to transfer me to a rep in the savings acct department who coudl help me open up an account.
- Providing balance sheets and tax return data does not speed anything up. It wasn't clear to me if Amex would accept that info unsolicited. I offered several times during the call. The response was (in various forms): if you apply for a credit increase, Amex might ask for those supporting materials, which would then be factored into the decision.
Overall, I was disappointed I could not get someone with more flexibility to look at the details of the case. They sound hamstrung by their iron rules. I've never missed a payment, and have a long history with Amex, but that did not help me get out of their flowchart responses. I have had much better luck with Chase in getting a human who had leeway to look at the whole picture but unfortunately I don't love their reward programs. I was considering switching back to one of my Amex cards to use as my primary card but I guess I will continue with my non-Amex options.
Seems to me that securing a credit line/exposure limit
with a deposit or bank guaranty would be a no brainer (win-win situation.) Even Financial/Bank Statements would be good.
Jun 15, 2010, 2:03 pm
#8
FlyerTalk Evangelist
Join Date: Aug 2001
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The only issue is that a bank deposit (even a long term cd) can be cashed out overnight. There's no protection for the bank, unless they offer a secured card product, which would truly "lock" your deposit in (and not look good on your credit report).
Jun 15, 2010, 2:43 pm
#9
Join Date: Jun 2002
Location: California USA
Posts: 652
They would most definietly put a "hold/lock" on the funds to secure the credit line, but Im not sure if it would show as a secured card product. Even if they did it would not effect anyone's credit score, according to FICO.
Jun 15, 2010, 3:03 pm
#10
FlyerTalk Evangelist
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Lenders that offer secured products have this kind of account. Amex doesn't offer secured lending products.
Jun 15, 2010, 3:27 pm
#11
Company Representative - Amex
Join Date: Aug 2009
Posts: 221
Would deposit to Amex High-Yield Savings increase my Amex card limits?
Hi FlyerTalkers,
If you are referring to depositing money into your High Yield Savings account it would not increase the line of credit.
Normally, you are able to request a line of credit increase every six months. If there was an issue with the request, it is possible that we can review the account and see if it can be processed. We will need to be contacted directly via Secure Message to see if the increase can be processed:
www.americanexpress.com/messagecenter
Please be sure to address the email, Rachel/ Social Media so that it is reviewed by the correct people.
I hope the information provided is helpful and looking forward to assisting.
Rachel
Amex Customer Care
If you are referring to depositing money into your High Yield Savings account it would not increase the line of credit.
Normally, you are able to request a line of credit increase every six months. If there was an issue with the request, it is possible that we can review the account and see if it can be processed. We will need to be contacted directly via Secure Message to see if the increase can be processed:
www.americanexpress.com/messagecenter
Please be sure to address the email, Rachel/ Social Media so that it is reviewed by the correct people.
I hope the information provided is helpful and looking forward to assisting.
Rachel
Amex Customer Care
Jun 15, 2010, 3:39 pm
#12
Join Date: Sep 2003
Location: SAN
Programs: AA Lifetime Platinum, UA, AS, DL, SPG Gold, HH Diamond
Posts: 1,097
Hi FlyerTalkers,
If you are referring to depositing money into your High Yield Savings account it would not increase the line of credit.
Normally, you are able to request a line of credit increase every six months. If there was an issue with the request, it is possible that we can review the account and see if it can be processed. We will need to be contacted directly via Secure Message to see if the increase can be processed:
www.americanexpress.com/messagecenter
Please be sure to address the email, Rachel/ Social Media so that it is reviewed by the correct people.
I hope the information provided is helpful and looking forward to assisting.
Rachel
Amex Customer Care
If you are referring to depositing money into your High Yield Savings account it would not increase the line of credit.
Normally, you are able to request a line of credit increase every six months. If there was an issue with the request, it is possible that we can review the account and see if it can be processed. We will need to be contacted directly via Secure Message to see if the increase can be processed:
www.americanexpress.com/messagecenter
Please be sure to address the email, Rachel/ Social Media so that it is reviewed by the correct people.
I hope the information provided is helpful and looking forward to assisting.
Rachel
Amex Customer Care
Jun 15, 2010, 6:23 pm
#13
Join Date: Jun 2002
Location: California USA
Posts: 652
I have a friend who works as a Relationship Manager for a local bank. He was able to arrange for a premium credit card to be issued, by their Bankcard Center, for one of his clients. The client would not have been approved through the regular route. His department assumed liability for the credit line and the department held funds as collateral. The credit card is considered unsecured because the bankcard center has no way of knowing that the department is holding funds as collateral.
Jun 15, 2010, 6:29 pm
#14
FlyerTalk Evangelist
Join Date: Aug 2001
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Under certain circumstances Amex will issue a Corporate Account to companies with the exposure limit backed by a deposit or bank guaranty. The company must meet certain requirements such as annual revenue/sales of at least $4 million. The deposit will be on "hold" while the accounts are secured. They will review the account annually to see if they can release the deposit or bank guaranty.
I have a friend who works as a Relationship Manager for a local bank. He was able to arrange for a premium credit card to be issued, by their Bankcard Center, for one of his clients. The client would not have been approved through the regular route. His department assumed liability for the credit line and the department held funds as collateral. The credit card is considered unsecured because the bankcard center has no way of knowing that the department is holding funds as collateral.
I can give you a dozen examples of rules being bent by private and relationship banking. Local or National. That's why these types of institutions exist.
Your comments, while interesting, aren't addressing the OP's question or dilemma: How can you get Amex Consumer Lending to open up, if they won't open up?
A nicely worded letter to Kenneth Chenault (Chairman's Office), would seem to be the best/only bet for the OP.
Jun 16, 2010, 1:15 am
#15
Join Date: Mar 2004
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Amex has just recently began a program for consumer accounts in which a CD held with Amex can be used to boost credit line at 80% of CD value.