Chicago Wine Geek

So I've never had a financial review. But I got notice last week that AE lowered my credit line on my two cards. Third time this has happened in about 4 years. As soon as I get to about $5K available credit, they lower my limit to $100 above my balance. Can't wait to pay them off and cancel them.

mia

Does this mean you have been carrying a balance?

Chicago Wine Geek

Yes, I've been carrying a balance...

mia

I suggest you look at your credit reports and compare the aggregate reported balances to the aggregate reported credit limits, and also compare the aggregate reported balances to your personal income that American Express knows about. Reducing credit lines typically means they think you are over-extended based on the available information.

Chicago Wine Geek

Thanks for the tip!

austin_modern

From the looks of it, they cant wait either....

Chicago Wine Geek

Never had a late payment since 1992. Usually did pay my balance off every month. But stuff happened and I ended up with a decent balance on each. Always pay double the minimum payment. I still feel like they are just screwing with me since they can.

Often1

Always possible, but this stuff is all automated and Amex has better things than to mess with individual customers for no particular reason.

You may want to do some significant research to figure out what's gone wrong here. They are basically firing you as a customer and that's a bad thing if you need credit, a security clearance or auto insurance down the road.

austin_modern

having a "decent balance" on multiple charge cards (per the OP) would probably do it....

dssxxxx

Never been late and have $350K line.

Just had the umptint email offering me Plat and waive the $450 yearly fee and I no longer get the Cent. invite, since I have turned it down every time (no waiver of fee).

Pay your bills every month and charge a lot and every time they turn down your purchase, ask for a credit release...........that's how I got to $350K. Been as high at $500K but only needed it twice.

Often1

This explains it. A $350K total credit limit isn't going to stick long unless OP has an AGI upwards of $1.5 Mill.

nrr

If and when you do cancel, make sure the records show "cancelled at the request of the cardholder"--or some similar wording, it is better for future credit reviews.

Centurion

Do you have a Amex charge card (Green/Gold/Plat/Centurion card) or a Amex credit card (spg, optima,etc)?

soitgoes

It's not the OP who has a $350K credit limit.

gum

I know that a reduction of the credit limit is *really* annoying. But I am convinced that you will see the decision of Amex in another light if you think some days later.

Reallocating credit limits is a natural process for nearly all companies dealing with customers, like department stores, credit card companies and also the retail-banking. :-:

Sometimes after purchasing many things and paying them off the credit limit increases - regardless if this is communicated to the customer or only a kind of "shadow limit" within the company IT [insert a name of a company you like].

If the limit goes up no customer is annoyed. But beware if you lower your exposure, then the customers complain

And AFAIK a limit of 5,000 USD carried over month to month on a credit card is not really a low limit and unfair treatment.

You can also see that the current business climate doesn´t show a clear direction. Many companies are between the insureties of the economic development on the one hand and the road to recovery on the other hand. :-:

So I see no reason for cancelling the card just for a limit reallocation.

I have seen it (based in Germany) for many times with the limit of my current account (not at the Amex bank as they have no branch in Germany - only credit card services). Sometimes it goes up and sometimes down.

"Regular" credit line allocations without a personal interaction with the bank are approx. for one third of the previous limit.

To conclude it: Although it is not nice that a business partner/credit company tells you that they have to lower the risk it is really part of the daily business life.