American Express Membership Rewards - LOC increase rejection makes no sense -- Advice?

American Express has approved me for the lowest LOC of anyone....only 7,700 http://www.flyertalk.com/forum/frown.gif Some credit cards are approved for 30K!

Right now, almost every card is paid off except American Express.

For the second time I asked for an increase, for the second time, they said NO http://www.flyertalk.com/forum/mad.gif

Why? Because my LOC is fully used right now. WHAT???? I am 'using' my American Express card.......so increasing my LOC is a 'bad' idea???? Ridiculous! To me, anyway...

Worth complaining to them? Wait a couple of weeks and send in another electronic request? Or Plan C -- get my bonds and bonuses and CANCEL the personal + business American Express?

It's silly to have to keep making payments mid cycle to get a higher LOC when my good payment history and credit clearly support a LOC increase.

Sooooooooo frustrating!

<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by ALadyNCal:
American Express has approved me for the lowest LOC of anyone....only 7,700</font>

Lowest I've read is $1,200.

Amex wants to see income vs. outstanding credit - they don't give a rat's butt about your assets or how much of your LOC you use (unlike Citibank). You have to wait at least six months between requests for a credit limit increase. There have been a few threads on this. For starters:

http://www.flyertalk.com/forum/Forum69/HTML/001934.html
http://www.flyertalk.com/forum/Forum69/HTML/001894.html

I meant they gave ME the lowest LOC of any of my credit cards -- not of other AX users (btw).

They rejected me last time because I had too many outstanding balances... So, I figured now that I have NO OUTSTANDING balances....they should be happy. But NO, they're not and it's silly.

<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by ALadyNCal:
I meant they gave ME the lowest LOC of any of my credit cards -- not of other AX users (btw).

They rejected me last time because I had too many outstanding balances... So, I figured now that I have NO OUTSTANDING balances....they should be happy. But NO, they're not and it's silly.</font>

If some of your cards are up to 30k as you indicate, you prolly have too much LOC total outstanding. Close some of the other cards and I'm sure Amex will give you a different response....

<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by ironmanjt:
If some of your cards are up to 30k as you indicate, you prolly have too much LOC total outstanding. Close some of the other cards and I'm sure Amex will give you a different response....</font>

As noted by Ironmanjt, Amex (and other credit grantors) look at the total credit available to you from other cards/accounts, even if you are not using it. This was the reasoning I was denied a mortgage years ago.
I hate those cards that keep sending you the letters congratulating you on your credit usage and as a "thank you" up your line...this causes more problems than you realize. Call these issuers and tell them to reduce the limits if you don't use them.
Amex is one of the toughest, and will only do increases every 6 months.