Saar

There have been many questions regarding this topic, and I'll try to explain it here. This post applies to Amex credit limits set for credit cards (as opposed to exposure limits set for charge cards).

Here are some ways you can get a credit increase:

(1) With one exception (discussed below), credit lines cannot be increased more than once every 6 months. You normally cannot get an increase while the account is less than 6 months old.

(2) Other than pinpointed solicitations, Amex will not consider you for an increase unless you ask for one.

(3) This is what happens when you call customer service to get an increase. The rep will check your account, to see if you're preapproved for an increase. If so, he also gets to see the amount of the increase. Then, he'll ask, how much do you want. If the amount you ask for is equal to, or lower than, the amount on his computer screen, he can approve you on the spot. If the amount you ask for is higher, or if you're not preapproved for any increase, he'll either transfer you to the Bank (where an account manager will pull your credit report, ask for your income and make a decision); Or, the CS rep may simply put in your request without letting you talk to the bank, ask for the same info, and tell you to expect a decision in 2 business days.

(4) The exception discussed in (1) is this: During the first 30 days of your account, you can ask for an increase without talking to customer service. Call Amex, ask to speak with New Accounts. Ask the New Accounts rep to put in a request for a re-evaluation of your credit line. No further credit check or information is needed. You'll get a response in 2 business days.

(5) You can get an indirect credit increase by applying for another Amex credit card. Wait at least 90 days between the issuance of card A and application for card B. Once you get the new credit card, call Amex New Accounts (at this time you can request re-evaluation as in (4)). Then, ask to speak with the MORE team. When you get a MORE team member, ask him to move the credit line from the new card to the old one. By doing this, you lose the new card but get the combined limit attached to the old one. No credit check is required.

(6) Do not ask to close your account as a means to pressure them into submission. Amex retention agents cannot bend the rules of credit increase.

(7) Sometimes you get to talk with an anal rep who'll tell you it can't be done (even though it can). If that happens, simply hang up and call again. Chances are, the next rep you talk to would be much nicer.

I hope our inquiring minds find this helpful


Saar

[This message has been edited by Saar (edited 04-09-2002).]

ILUVCITIBANK

saar,
fascinating post. I have never seen such a lucid explanation of amex's credit procedures and chronology.

thanks for taking the time to post this.

Counsellor

Re: #5 in the original post - As I just posted elsewhere a few minutes ago, I did this in reverse some time back. In order to keep all the information in this one thread, I'll quote here what I said there:

ILUVCITIBANK

counsellor, it should also be noted that I also called AMEX and explicitly asked them to shift some of my corporate card loc to my personal optima....amex made it clear that locs between the colored charge cards (gold, plat, and centurion) and their optima cards cannot be moved back and forth.

[This message has been edited by ILUVCITIBANK (edited 04-11-2002).]

Gaucho100K

Great thread, thanks for posting this, Saar. Do you or does anybody else perhaps have something similar on how the exposure limits are managed for the charge cards?

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Gaucho100K

eMailman

Thanks, Saar you are a treasure trove of information.

RDY3238

Observations on low Starwood amex loc's.
I am considering the Starwood Amex, but was concerned at the low credit lines reported by some FT cardholders. It seems that you can't ask for an increase until 6 months has elapsed. A low line would really render the card pretty useless to me as I want it to replace my main business card. I called customer service to enquire whether there is an Amex policy of low credit lines for new Amex customers, and was told no. Its all contingent upon your personal history etc. Makes me wonder though why so many people report unuseable credit lines. Maybe everyone has a zillion cards. I don't - only two. I certainly don't want another open account thats unuseable for 6 months.
Does anyone know any alternative ways for paying off a balance half way thru a billing cycle, and will that free up the full loc?
Thanks

ILUVCITIBANK

> Does anyone know any alternative ways > for paying off a balance half way thru a
> billing cycle, and will that free up the full > loc?

With the OPTIMA series (Starwood, Hilton, Delta, and several other co-branded products) there is NO BENEFT WHATSOEVER to pre-paying mid-cycle. I foolishly did this twice w/ AMEX/OPTIMA thinking it would free up my starwood/amex for more mid-cycle charging after hitting my max...no go. Wasted that fedex money twice. Now...I load it up...and let it sit until it's time to pay the bill. AMEX has lost out on as much as $50K of my business last four months because of this very weird policy. All my overflow went to Citibank.

In fact, I found that when I expedited my payment (FedEx), amex could not manage the quick payment and it took several days LONGER into the new cycle for my cl to re-appear and be useable than I think it might have had I just mailed the silly thing in; thus I am convinced the only "safe" thing to do with amex is pay it by us mail...and wait for it to post.

Opposite is true for the gold/play/cent....mid-cycle payments DO post there relatively quickly and DO free up credit lines (ok, amex coyly calls it "exposure limits").

Several ways to get quick payments to amex (remember - my experience thus far has been that amex DOES NOT handle expedited payments well and, in at least once case, took them over a week to post an expedited payment, ie it caused me major grief instead of quickly freeing up cl as I had thought it should):
1) FedEx it (or air carrier like UPS, USPS ExpressMail, etc)
2) Wire transfer
3) Electronic Funds transfer

Put another way - almost every major-name v and m/c (Citibank, Chase, 1st USA, etc) banks that I have cards with....can and do manage expedited payments w/ skill...and mid-cycle payments "can and do" post quickly and free/release cl back to the cardholders...amex blows it in several aspects.

skofarrell

Don't forget Amex web site payments (linked to your checking account). they've been posting within 1-2 days for me.

nhy

Re: AMEX web site payments -- not only do they reliably post in 1-2 days for me as well, but they post with the date the payment was initiated, even if it was a weekend day... handy if you are cutting it really close to the end of your billing cycle. In contrast, payments I've made initiated from my bank's online banking feature generally take 2-4 days to post at AmEx.

toddpate

Questions for Saar or others:

1 - Can you change the billing cycle on your Starwood AMEX, or other AMEX Optima products? My current billing cycle is not favorable for maximizing the float for T Bond purchases, and I have been told by front line AMEX reps that is unchangeable. Is that true? Soes that mean that all *Wood AMEX holders are on the same billing cycle?

2 - You mentioned consolidating credit amoung multiple cards to maximize the limit on one card. Can you consolidate the DL AMEX card into a *Wood credit line? I get the impression that the DL AMEX is treated differently than the Hilton and *Wood AMEX.

RobertS975

I have an AMEX Platinum Card, two DL Platinum SkyMiles cards each with about a $14,000 credit line and a brand new Starwood Card which came with a measley $3600 credit line. I also recieved a letter basically saying that the credit line was low due to the number of cards that I had, and I could move the credit lines around between the Optima cards with a simple phone call.

VolleyballFerd

I doubt we are all on the same billing cycle - mine closes on the 24th, which is perfect for Savings bond purchases. My guess is that they are saying once yours is set, then it is unchangeable.

Steve M

There's nothing particular to Starwood Amex or other Optima products that causes them to get unusually low limits. The issue that many of us have run into is that Amex considers all of your Optima cards together when deciding what credit limit you'll get. For example, if you apply for a Delta Amex, and they decide that they're willing to give you a $10,000 credit limit but not more, it's not really reasonable to expect an additional $10,000 of credit from Amex just because you apply for a Starwood card. This is why people are getting unworkably low credit limits when applying for additional Optima cards.

Although it's true that they won't reconsider your credit limit for 6 months, they are more than willing to move available credit between cards. So, if you want to transition from, say a Delta Amex to Starwood, it's not really a problem. As soon as you get the Starwood card, call them up and ask them to move things around to your liking.

If you don't already have an Optima card, then there's no reason to expect that Amex would give you any lower of a limit than you'd get from any other bank.

RDY3238

Thanks to everyone for the replies, and to Steve for the insight on the 'Optima family card relationships' and his well explained answer.
- A little closer to Amex -