Reducing CL to help with approval?
Feb 13, 2016, 10:18 pm
#1
Original Poster
Join Date: Nov 2006
Programs: Marriott Platinum, Hilton Diamond, IHG Platinum
Posts: 3,718
Reducing CL to help with approval?
It's a common technique with Citi and Chase, to decrease existing CL before applying for new cards. I've never needed to with Amex, since they've always given me puny CLs but approved anything I ask. However, a family member currently has 15k CL on a biz card. They only need maybe 2k and don't want it to adversely impact future apps (personal and business). They also prefer not have to call in to shuffle CL.
What's the recommended course of action in this case? Does reducing biz CL help with personal app?
What's the recommended course of action in this case? Does reducing biz CL help with personal app?
Feb 13, 2016, 10:30 pm
#2
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Join Date: Sep 2014
Posts: 3,072
I started a thread here about this a few weeks ago and there doesn't seem to be much of a consensus.
In my case, I have about $15,000 in excess CL on a couple of co-branded cards, which I suspect hurt me when I applied for the Platinum. Unlike with Chase and Citi, however, it's not at all easy to get a credit analyst on the phone to discuss the matter or request a reduction or reallocation.
In my case, I have about $15,000 in excess CL on a couple of co-branded cards, which I suspect hurt me when I applied for the Platinum. Unlike with Chase and Citi, however, it's not at all easy to get a credit analyst on the phone to discuss the matter or request a reduction or reallocation.
Feb 14, 2016, 2:07 am
#3
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If you have only one American Express (USA) credit card, and you intend to apply for another there is no apparent benefit to reducing the limit. If the credit exposure is too high American Express will likely just reduce the limit on the old account when opening the new one, and notify you after the fact that this was done.
If you already have two or three credit cards, and if you prefer the limit be reduced on a specific card when opening another, it may work to reduce the limit before applying, but I wouldn't bother. Just apply and negotiate the reallocation on approval.
If you already have two or three credit cards, and if you prefer the limit be reduced on a specific card when opening another, it may work to reduce the limit before applying, but I wouldn't bother. Just apply and negotiate the reallocation on approval.
Feb 14, 2016, 2:03 pm
#4
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Agree. I had mine adjusted before upon approval automatically.
Agree. I had mine adjusted before upon approval automatically.
Feb 14, 2016, 3:23 pm
#5
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Join Date: Sep 2014
Posts: 3,072
Anyone have experience with the CL on their Amex credit card(s) being reduced as part of an approval for a charge card? I'd like to add a Plat to my PRG, but I feel like my credit allocation with Amex might be out of whack. Amex gave me a ~$20,000 limit on a Delta card that I only use with Delta (and sometimes not even with Delta).