American Express Membership Rewards - credit lines with amex

Can anyone tell me which amex card they are the most lax with in regards to credit standards, and I can get the highest line just by applying. I already have an amex, which they won't raise the credit line for six months on. I am trying to apply for another amex (optima) which I will cancel immediately upon approval and combine the two credit lines. Thanks!

I'd certainly think they apply the same initial credit line formula to all personal credit cards . . . The DSM card shouldn't give you a higher limit than a standard Optima.

I have a DSM Platinum and had their Blue card (for cash access on the C card) . . . The Blue one had a paltry limit of $1,200 (I think) and I'm not sure how they came up with that.

Eddie Whitman

I had a UK Gold AmEx Credit Card a while ago, I was given a low limit of £2k, I asked for it to be raised to £5k as I needed to buy something and was told that I would have to wait 6 months, I mentioned that I had a Platinum Charge card and it was raised to my desired limit a day later. I scrapped the card earlier this year and replaced it with the new BA AmEx Premium Plus card and my 2 credit limits were combined and also raised at the same time to a more than adequate limit, shame I never use it as I always use my Platinum Charge card instead nowadays and have a significantly higher limit available without question. But it is always handy to have the backup credit card, never know when it may come in handy.

Thanks,
Richard

Three words: Amex isn't stupid.

Even if you succeed in pulling off the combine-credit-lines thing (and who says they'll let you do that?), you will have a black mark on their record.

I venture to say it's not worth it. Just IMHO.

May well depend on the amex you already hold. If its a charge card, you're more likely to get a higher limit on a credit card but if its already a credit card they're unlikely to give you anything.

When I had a Platinum card I took a Gold Credit and was given a 5K limit. I never used it and replaced it with a BA Amex earlier this year and mentioned that I had Centurion (so as not to pay the fee mainly!) and hey presto a "would a £20K limit be sufficient sir....?" nothing in my credit had changed other than Amex had upgraded me internally.

I think you'll probably have to wait.

dnw

<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by pynchonesque:
Three words: Amex isn't stupid.

Even if you succeed in pulling off the combine-credit-lines thing (and who says they'll let you do that?), you will have a black mark on their record.

I venture to say it's not worth it. Just IMHO.</font>

Actually, I have already done it with no consequences. Its a fairly simple procedure. I am just trying to figure out the best way to do it. I currently have a starwood optima.

This is my first post in the AMEX forum, I don't normally care about payment cards, but this thread suprised me:

I have an AMEX Green; two Golds a Platinum and a Travel Account (no physical card) all issued in The Netherlnds (no Centurian card in Holland as yet, sadly). I have never had any problems with a 'credit limit' and thought the whole point of AMEX was that there was no pre-set spending limit?

When ever I have asked about a credit limit, they always tell me that if I intend to spend more than 50% more than my highest normal spend (not sure what that means!), to let them know and they will simply contact my bank for a 'postive reference', just to make sure there are no problems. But they also tell me they will never refuse a payment without advising me first.

Is this just a Dutch thing, or am I misunderstanding and there is really a credit-limit?

Also, do you think all the cards I have share the same limit (with pooled balance) or do they all work seperatly? They have been issued over the years as I have crawled up the pecking (colour) order - with the exception fo the Travel Account, which is billed direct to my employers, although it is a personal and not a corporate account.

Thanks,
Nick

<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by Merry:
This is my first post in the AMEX forum, I don't normally care about payment cards, but this thread suprised me:

I have an AMEX Green; two Golds a Platinum and a Travel Account (no physical card) all issued in The Netherlnds (no Centurian card in Holland as yet, sadly). I have never had any problems with a 'credit limit' and thought the whole point of AMEX was that there was no pre-set spending limit?

When ever I have asked about a credit limit, they always tell me that if I intend to spend more than 50% more than my highest normal spend (not sure what that means!), to let them know and they will simply contact my bank for a 'postive reference', just to make sure there are no problems. But they also tell me they will never refuse a payment without advising me first.

Is this just a Dutch thing, or am I misunderstanding and there is really a credit-limit?

Also, do you think all the cards I have share the same limit (with pooled balance) or do they all work seperatly? They have been issued over the years as I have crawled up the pecking (colour) order - with the exception fo the Travel Account, which is billed direct to my employers, although it is a personal and not a corporate account.

Thanks,
Nick

</font>

merry, I think you are confused by the different types of cards Amex provide.

they have the charge cards which comes with no limits (but you have to pay the balance in full each month) and they have the credit cards which has a credit limit and you can make a min. payments each month.. just like Visa,MC. All the cards you have they look like a charge cards and not credit cards.

hope that helps.

<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by pynchonesque:
Three words: Amex isn't stupid.

Even if you succeed in pulling off the combine-credit-lines thing (and who says they'll let you do that?), you will have a black mark on their record.

I venture to say it's not worth it. Just IMHO.</font>

can you explain more please. i have 3 Amex accounts i closed one acc. and requested the credit line to be transfered to my other Amex acc. No problem at all. actually the agent filled a credit line transfer form while i was on the phone. they call it something like accomodation of a credit line.

KSA_USA: Many thanks. Confused I was. AMEX do not issue credit cards in The Netherlands (to the best of my knowledge), so I did not know these existed.

Again thanks,
Nick

Careful - the charge cards have "no pre-set spending limit", but there is a level at which your charge will be refused, or you will be called.

The best guess of the board is that figure is 50% higher than your highest charging month's statement. There has also been a link posted to the AMEX web site where you might be able to try test amounts and see if the amount would be approved.

If in doubt, you can call and infrom AMEX in advance of a large charge that you are going to make (car) and you will be told what the options are, such as paying in advance.

<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by Merry:
KSA_USA: Many thanks. Confused I was. AMEX do not issue credit cards in The Netherlands (to the best of my knowledge), so I did not know these existed.

Again thanks,
Nick</font>

As far as I understood, the blue card is a credit card, and it should be available in the Netherlands.

Maybe it's mainly a terminology problem - e.g. in German there is only one word for "credit card", which does not distinguish between credit cards and charge cards. So, I had the same problem before.

<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by eMailman:
Careful - the charge cards have "no pre-set spending limit", but there is a level at which your charge will be refused, or you will be called.

The best guess of the board is that figure is 50% higher than your highest charging month's statement.</font>

eMailman is correct in saying "the charge cards have "no pre-set spending limit", but there is a level at which your charge will be refused". This limit is set by Amex and is determined by their credit scoring system.

Merry wrote "will simply contact my bank for a 'postive reference". This takes some time to get done and you have to contact your bank and authorise Amex to obtain a reference before they can do this.


[This message has been edited by criscokid (edited 08-01-2001).]

Here's my 2c... or should that be 5p... ;-)

Amex Credit Card:- eg BA Amex, Gold Credit, Blue. These are just like any other credit card with a pre-set credit limit, £xK max that you can spend each month. Usually you are not expected to pay the balance off in full and are charged a pre-defined interest rate.

Amex Charge Card:- eg Green, Gold, Platinum, Centurion. This differs from a credit card in that you are expected to settle the balance in full each month. It also has "no pre-set limit". This is not the same as "no limit" (despite what everyone thinks!). It just means that Amex doesnt say "dnw can spend £xK" in one month in writing. Its like a credit limit that gets revised repeatedly. Their general formula for this is usually 50% more than the previous maximum paid off balance. The rational being "dnw was ok for £yK this month, so he's probably ok for £1.5yK..." it goes on. The higher the balance you settle, the higher the pre-approved limit goes. Again, think of it as an incredibly flexible credit limit- even if you do exceed that pre-approved level, they will try to accomodate you, whether that means contacting your banker or looking at transaction history.. etc etc. The most important thing is that difference between "No pre-set limit" and "No limit". In fact they usually follow this up with "...what you have shown us you can afford"... i.e. what you were able to pay off last month!

dnw

[This message has been edited by dnw (edited 08-02-2001).]

When I view the details of my Amex account online, there is a link to "Will my charge be approved?" Apparently if you have a question about how much you can spend, you don't even have to call.

AMEX cards DO have a credit limit. However, that limit is secret to the user.

AMEX...the card with the secret credit limit

A few months ago I asked AmEx to raise the 20k limit on my Starwood/Sheraton Optima Card and was advised that this was not possible for the 1st 6 months. I then called AmEx again and applied for their "Blue" card which does not have an annual fee. The card was granted with a 24k credit limit. As soon as the card was activated, I called AmEx and asked to have 15k of the 24k credit limit of the "Blue" card transferred to the Starwood Optima card, which the did.

This satisfied my original requirement to raise the credit limit of the Starwood Optima card.

I have not cancelled the "Blue" card since it does not have an annual fee and may come in handy one day.

Yes Clanson, that is exactly what I am trying to do (and have done before)! You applied for the blue which they are realtively stingy with about giving decent credit lines, which card of theirs are they lax enough to give you an even higher credit line than the 24k they gave you?

<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by Merry:

Also, do you think all the cards I have share the same limit (with pooled balance) or do they all work seperatly? They have been issued over the years as I have crawled up the pecking (colour) order </font>

OK, so I get that AMEX also issue credit cards now, but are my charge cards independant of each other or are they linked. In other words if I reach my 'limit' on one card, is it reached on the others as well?

Thanks,
Nick

PS: In The Netherlands for a positive guarantee, they just 'phone your bank and it is done in 5 minutes.

My guess is that they are not pooled. Here is why.

Until about 1995 your Optima was linked with your charge card. You had to have a charge card to apply for Optima. When I got the Gold card, a Gold Optima followed the next week. Likewise for PLAT. Then in 1995 (If memory serves), the PLAT Optima was replaced by a normal one with the same credit limit.

They were stubburn about the credit limit increase on the Optima, or the new PLAT Optima that came out in the late '90s until I finally called and said that I could walk into an AMEX travel office with my PLAT card and walk out with 10K USD in cash no question. If your credit card does less than your charge card, what purpose does it serve?

Got he credit increase and new PLAT Optima about 10 days later. It is still almost worthless and about time to cancel.

FWIW, I had thought that they were effectively pooled - or at least an Amex rep once told me that!

It's kinda' tough to figure out what Amex is doing this days, IMHO! They do seem to be doing a fast fade, and I really need to just perhaps give 'em up it seems! http://www.flyertalk.com/forum/frown.gif

Well Mileageman, I believe all the charge cards as opposed to the "pay in full every month" cards, are issued by Centurion Bank (a wholly owned subsidiary of AmEx). I suspect they use the same evaluation model for setting a credit limit on all these cards since AmEx is at 100% risk.

From AmEx, I have a Blue card, a Hilton card, a Starwood card and an original Optima card. I suppose I could ask AmEx to transfer most of the available credit on all of them to only one of these. By far the best one of course is the Starwood card because of Starwood's superior program.

<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by clanson:
Well Mileageman, I believe all the charge cards as opposed to the "pay in full every month" cards, are issued by Centurion Bank (a wholly owned subsidiary of AmEx). I suspect they use the same evaluation model for setting a credit limit on all these cards since AmEx is at 100% risk.

</font>


I don't believe that you are correct. I know people who ere turned down for the blue card, but were accepted and given generous credit lines for the starwood card.

quote:

Originally posted by Merry:

Also, do you think all the cards I have share the same limit (with
pooled balance) or do they all work seperatly? They have been
issued over the years as I have crawled up the pecking (colour)
order


OK, so I get that AMEX also issue credit cards now, but are my charge cards
independant of each other or are they linked. In other words if I reach my 'limit' on
one card, is it reached on the others as well?
=============================================
Merry:
Each card has it's own limit - shown on the account statement. I am not talking about that "green card", which has a "hidden" limit?!

I have several different Amexco cards. When I wanted another one (wanted the Hilton bonus), I was told I would get a low limit on THIS CARD because I had several other cards with a pretty high limit.
==========================================
Yes, the Starwood is a fine card. No fee and a mile per dollar. However, the US Delta SkyMiles Amexco is even better: 2 miles per dollar on most purchases (gas, supermarket, postal service etc.)

Here's a tip regarding Amex credit line increase policy.

If your account is still new (during the first 30 days since activation), there's another credit increase tactic available.

Call their New Accounts department (1-800-962-7227) and ask for a re-evaluation of your new card's credit line. In most cases, you'd see an increase within 2 business days.

This is also recommended when you intend to combine 2 cards. First have the new card's limit re-evaluated, and only then combine.


Saar

Thanks for the tip saar.

The internal term for your 'credit limit' on an AMEX charge (pay off in 30 days) card is called the 'exposure limit'. I think ya'll are right about it being 50% over the highest settled account balance, with an exception. If one needs to go over the 'pre-set spending limit' they have to 'update your banking information'.

What I was told at one time by a rep is that when they call to 'update your banking information' what that's really for is to verify funds. They contact your bank and ask for the average daily balance over the lifetime of the account. AMEX authorizes you for 150% of that amount. This is a fairly painless process and every time I've had to do it it was handled in 2 minutes with the AMEX rep and I on a conference call. AFAIK it's not just bank accounts that will work, you can use brokerage accounts, etc... in my case one time I used my Merrill Lynch account.

As far as I know, any personal cards one has pool from the same line of credit, while the business cards have their own separate line.

You can pretty much figure out what your exposure limit is by using the "Will my charge be authorized?" feature on the AmEx website... just keep putting in higher numbers until the charge declines. Add that amount to your currently outstanding charges and you've got your exposure limit. Amazing how a one cent difference on a $30k charge can make the difference between no problem and no dice.

[This message has been edited by kanebear (edited 08-25-2001).]