Delta Amex card - 180 degrees, getting BAD

 
Old Mar 4, 09, 2:40 pm
  #1  
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Delta Amex card - 180 degrees, getting BAD

First, they remove "always double miles" (except on Delta purchases). Then, they reduce my credit from 35000 to 4000 without a satisfactory explanation: "we have reviewed your credit history and have adjusted our policies, blah blah blah..."

This has caused the card to be declined at retail locations and also on recurring payments! Basically, more headaches and less rewards.

Has this happenned to anyone else?

I think I will cancel this card very very soon...
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Old Mar 4, 09, 4:11 pm
  #2  
 
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Amex has been pulling back on credit across the board. They've been getting burnt on all the credit they were dolling out over the past couple years and are trying to get back to servicing customers who pay their bills every month. I know when I picked up my business Amex cards two years ago they gave me way more credit than was probably justified on a business case at the time. They haven't touched my limit yet, but I also pay them off every month, which is Amex's stated 'ideal' customer.

Hell, Amex cards you could carry a balance on at all are a fairly recent introduction.
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Old Mar 4, 09, 4:24 pm
  #3  
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Originally Posted by raehl311 View Post
They haven't touched my limit yet, but I also pay them off every month, which is Amex's stated 'ideal' customer.
I did not mention it originally, but I have also paid in full every month since I became a member in 2001. Oh well...
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Old Mar 4, 09, 5:07 pm
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Originally Posted by silkworm87 View Post
I did not mention it originally, but I have also paid in full every month since I became a member in 2001. Oh well...
this its happening a lot lately one of my cards was lowered from 38k to 13k same explanation bla bla bla and i do pay every month never carry balance or been late charge around 35k to 45k per month between all my 4 amex
also i just cancel my delta amex bussines i was usingit for a lot of gas and hardware stores no reason to paying for 2 cards
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Old Mar 4, 09, 5:32 pm
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Not as ideal as you might think...

Actually, the fact the you pay your bill on time does not make you an ideal customer. Those who carry a balance (thus paying interest each month), make on-time payments (consistent money stream for Amex), and still use their card (transactional revenue) are the ideal customers for all credit card issues.

I can't remember the term, but people who are responsible with their credit and do not incur any late fees or interest are considered "freeloaders!"
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Old Mar 4, 09, 5:34 pm
  #6  
 
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Citibank has been doing the same with their affinity cards. Upping the interest rates, dropping the limits, changing the grace periods, etc. I called them on one card change and they said they had notified all card members. I said BS to that and voila, five days later I get a mail message telling me they were changing some terms on my account "to reflect my valuable cardholder status"???

On the Delta AMEX side, I decided the annual fee wasn't worth it, so in late 2007 I called to cancel my long-term Skymiles Gold account. They asked why and I told them the annual fee wasn't worth it given my reduced flying on Delta. They then offered me a no fee AMEX Delta Skymiles card that gave me most of the same benefits I got on the Skymiles Gold except the useless companion tickets and bonus miles at certain spend thresholds.

I had a big chunk of United miles expiring soon and just signed up for the Chase Mileage Plus Visa. I intend to ask for a no fee version of it after about six months of activity.
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Old Mar 4, 09, 5:38 pm
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Originally Posted by silkworm87 View Post

Has this happenned to anyone else?
They moved me from 75k to 10k. I then canceled. BS... Funny thing, my DL Account still shows the Pay With Miles option.
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Old Mar 4, 09, 5:44 pm
  #8  
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I think I am going to cancel this card when it's time to renew, the miles boost is not even worth it.
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Old Mar 4, 09, 6:15 pm
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I downgraded from the Platinum card to the no fee options (or is it optima) card in order to keep the credit line (and history) open.
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Old Mar 4, 09, 6:26 pm
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Originally Posted by WBurcham View Post
I downgraded from the Platinum card to the no fee options (or is it optima) card in order to keep the credit line (and history) open.
Hmm, are you saying that canceling a credit card is harmful to credit? My wife mentioned a similar thing and I dismissed it as it seems illogical to me. But then again, credit has never been 100% logical, so there I go...
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Old Mar 4, 09, 6:29 pm
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Wirelessly posted (BlackBerry8320/4.5.0.81 Profile/MIDP-2.0 Configuration/CLDC-1.1 VendorID/100)

Yes, closing a credit card damages your score.
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Old Mar 4, 09, 6:31 pm
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Originally Posted by silkworm87 View Post
Hmm, are you saying that canceling a credit card is harmful to credit? My wife mentioned a similar thing and I dismissed it as it seems illogical to me. But then again, credit has never been 100% logical, so there I go...
Part of the score is the debt to credit ratio. If you close a credit card you have less available credit therefore your debt to credit ratio could increase.
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Old Mar 4, 09, 6:38 pm
  #13  
 
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Originally Posted by silkworm87 View Post
Hmm, are you saying that canceling a credit card is harmful to credit? My wife mentioned a similar thing and I dismissed it as it seems illogical to me. But then again, credit has never been 100% logical, so there I go...
Yes, canceling a line of credit can negatively impact your credit rating. Your score (whether it be FICO, or some other algorithm) is calculated based on a variety of factors, from payment history, account age (how long your accounts have been open), to utilization (both per-account, and overall).

When you close an account, you take two hits in this equation - first off, your account can no longer contribute to your "age of accounts." Secondly, you lose utilization on the utilization front - your percentage of outstanding debt in relation to available credit will go up.
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Old Mar 4, 09, 7:54 pm
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Originally Posted by silkworm87 View Post
Has this happenned to anyone else?
Lots of similar situations about reduced credit lines in this thread - http://www.flyertalk.com/forum/ameri...ce-1986-a.html
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Old Mar 4, 09, 8:33 pm
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They cancelled my card in October without notification. I originally thought it was because I maxed out and paid off my card 6 times in two months while purchasing tickets for the remainder of the year but that wasn't it.

Nope, instead they canceled the card due to a $22 delinquency on my credit report that in fact turned out to be a clerical error for a doctors visit back in 2007. They told me they would reopen the card if I paid off the balance within 90 days which reeeeeally got under my skin because I had just given them nearly $58,000 over 50 days, but because of a $22 mistake by some office temp, they were holding my card hostage and demanding the $7500 balance in order to reactivate the card. ... WHEN I HAD PAID IT IN FULL ALREADY SIX TIMES IN TWO BILLING CYCLES.

So I told them to screw off and left a $100 balance on the card for 100 days then paid it off.
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