Recession forcing American Express to target profiles to decrease credit limits
Awhile back I mentioned that my credit line with American Express had been cut from $30,000 to $10,000 overnight. At first I was irritated but just decided to give my other credit cards my business. Just so you know, the rate on my American Express is 3.99% for the life of the balance as long as I don’t miss any payments. So that balance will continue to just get minimum payments. The part that I feel is unfair is that by them cutting down my credit line to just above my balance, it appears that I have maxed out the card. In turn, when my FICO score is updated, that will knock some points down. I have never made a late payment with them or to any of my other credit cards. I did in fact call the credit department and I can tell by the conversation I had with the credit manager, she had a script carefully prepared for this type of call. She explained to me that they run Trans Union credit reports with all their customers and that my situation had significantly changed. I advised her I had a subscription to that particular credit report with free scores on a monthly basis which I do check every month, and that there have no been changes to my credit limit to debt ratio (with only them being an exception), no changes in my financial situation, and no late payments to any creditors listed or not listed on any of my credit reports. I did receive a comment from another cardholder whose comment was longer than my post but had shared the exact situation. At that time I googled to see if I could find the answer specifically why but was unsuccessful.
Today, I was doing stumbling at Stumbleupon, and I came upon a merchant who was unhappy doing business with Amex. After reading his story, I decided to google my situation again and this time I found actual forums and articles of what had happened to me and why Amex and other credit card companies are doing it. It is obviously to minimize their credit card portfolio risk because of all the direct and indirect losses they have suffered from the housing bust.
Here is the first story from SmartMoney in July:
NEWLYWEDS TIMOTHY AND Laine Sak were checking into their hotel in Kauai, Hawaii, last month when their honeymoon was disrupted by an embarrassing mishap: Mr. Sak’s American Express Platinum card was declined.
That was just the beginning of their worries. A quick call to American Express revealed that Sak’s nine accounts with the company — he has three personal and six business credit cards for his two businesses — had been singled out for financial review. All accounts were temporarily frozen and AmEx requested documentation proving his income: pay stubs, bank statements or a completed IRS form 4056-T, which authorizes the company to receive a transcript of his tax returns.
Worst of all, his credit limits were severely reduced. His AmEx Blue Cash card, for example, went from a $21,000 credit line to a mere $500. Since his balance at the time was $600, the cut pushed Sak over his limit. (AmEx later waived the $35 over-limit fee because of his good payment history.) Overall, Sak’s credit limits went down from an average $15,000 to less than $5,000 per card, bringing his total debt utilization ratio — his balances compared with his credit lines — to a precariously high 99%.
Any credit-savvy consumer would guess what happened next: Sak’s credit score plunged 40 points, to 640. AmEx told Sak they would consider reinstating his limits after evaluating his credit report for the following month. But Sak figures chances are slim with that credit score drop. Furthermore, all this will likely cause his other creditors to hike their interest rates — or even follow suit and cut his credit lines, as well.
Can you imagine being on your honeymoon and one of your 9 American Express cards is declined. Ouch! Good thing he didn’t pull out one of the 8 remaining cards because that would have been “DENIED”. 
No late payments and his credit line went from $21,000 to $500 and a possilbe 40 point drop in his credit score. At least I know what to expect when my FICOs are updated. Sniff, sniff.
Now a follow up article in SmartMoney described exactly who and why they were doing this:
That’s exactly what the credit-card companies are counting on. Faced with a growing wave of delinquencies, they’re tightening lending standards considerably, focusing on card members they perceive at highest risk of default. (Chasing balances — the industry term for lowering a customer’s credit limit as they pay down their balance — is one way to control that risk.) Unfortunately, these days lenders are expanding the definition of high risk to include many consumers who would have been considered good customers just months ago. Now, cardholders can be subject to greater scrutiny based on where they live or what type of business they run.
In a recent presentation before investors, American Express CEO Kenneth Chenault said the company is “implementing targeted line reductions for specific segments of our portfolio representing the greatest risk,” including card members “holding subprime mortgages and small businesses operating in specific industries, such as mortgage companies, home builders and construction-related businesses.” Furthermore, he noted that the company is “adjusting credit models to reflect the higher probability of default that exists during a weaker economy, and in geographies that have been most impacted by home price declines.”
Kim Ford, an American Express spokeswoman, says that such factors aren’t “decisive,” as the company always looks at a card member’s overall profile.
For Charlton, who lives in Irvine, Calif. — an area he describes as “right in the middle of foreclosure central” — the idea of being under even more scrutiny is daunting. He says he hasn’t had a late payment in more than three years, but his credit score is in the 675 range: a number his creditors may frown upon, as scores below 680 can be considered borderline-prime.
My profile fits this description like a snug glove. I work in the credit industry and I live in an extreme declining subprime area (Orange County, California) with record number of foreclosures being filed everyday. So I guess I am living in the wrong area and working in the wrong field (20 years now).
There are many others experiencing what I have gone through. I suspect other credit card companies will be doing the same. Nevermind that the federal reserve has lowered interest rates 5 times in the last 6 months or increased their auctions by $200 billion to stimulate the economy. If banks continue to become this reserved with their prime customers, I can only guess customers who are not prime don’t have a chance. Here is a list of forums I found that seem to have other consumers sharing the same concerns I have:
Amex Credit Line Decrease after Balance Transfer Requests
Anyone have their credit limit decreased by AMEX at the end of 2007?
AMEX CL decrease!!
I believe the sub prime debacle is actually getting worse and we are no where near the bottom of the housing bust. As we continue to receive these gloomy headlines as listed below, I suspect more credit card companies will aggressively profile whoever they feel are the highest risk candidates for charge offs and either lower their credit limits or cancel it altogether.
Paulson Says U.S. Will `Do What It Takes’ to Keep Financial Markets Stable Treasury Secretary Henry Paulson said the U.S. will “do what it takes” to maintain confidence in financial markets and defended the bailout of Bear Stearns Cos. as “the right decision.”
Housing Starts in U.S. Probably Slid to 17-Year Low, Factory Output Fell Builders in the U.S. broke ground in February on the fewest houses in 17 years and factory production fell, a sign the deepening real-estate slump is dragging the economy into a recession, government reports this week may show.
U.S. Stocks Fall for Third Week as Bear Stearns Gets Emergency Fed Funding The Standard & Poor’s 500 Index fell for a third week after a cash crisis at Bear Stearns Cos. overshadowed the U.S. stock market’s biggest one-day rally in five years.
Treasuries Rally as Bear Stearns Funding Heightens Credit Market Concern Treasuries rose, pushing the two- year note’s yield to the lowest level since 2003, as traders bet the Federal Reserve will make deeper cuts in borrowing costs after it arranged a financial rescue for Bear Stearns Cos.
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i guess our only recourse will be to pay off the amex cards and cancel them or not use them. we all know that merchants pay a
huge fee to accept amex and that is where
amex makes alot of its money. that will force merchants such as costco to accept
regular visa and mastcard credit cards.
THE ONLY THE YOU CAN DO TO A LARGE CC COMPANY LIKE AMEX IS TO PAY OFF YOUR BAL AS
SOON AS YOU CAN AND DON’T USE THE CARD. WE ALL KNOW THAT RETAILERS THAT ACCEPT THE
AMEX CARD PAYS LARGE % FEES TO AMEX. SO IF YOU DON’T USE IT AMEX WILL LOSE LOTS OF
REVENUE AND WILL FORCE COMPAINES LIKE COSTCO TO ACCEPT VISA AND MC CC (NOT JUST
DEBIT AND AMEX). GUARENTEE AMEX WILL PUT
BACK PEOPLES CREDIT LINES ASAP AND A BIG
WET KISS AND PLEASE USE OUR CARD.
I found this today looking for information on the limit slashing on AMEX Cards. I have a feeling mine is next.
My Dad (who worked for the Federal Reserve for 30+ years) told me today that his was cut from $30K to $15K and he’s been a customer of AMEX since 1970 and has never had one late payment. When he called AMEX to say, “WTF?” they told him that Centurion Bank was responsible for the cuts and that it had been a universal cut across the board for everyone except people who regularly pay their entire balance each month.
Thanks for posting this info!
I have five Amex cards and recently I have had four declines despite the fact that I paid over $20,000.00 on my cards. Amexco used excuses such as one of the cards had been paid at the minimum payment on balances and although I made some significant payments they still declined several charges. I have two Platinums, two golds, and one blue. I recommend that everyone file a complaint with the Federal Trade Commission against American Express. If they receive enough complaints maybe American Express will get investigated for improper handling of the credit lines.
Got a letter today saying my AMEX credit line has been decreased to 2660. There can not have been any change in my credit history to warrant it. Now the ratio of my balance to available credit is way high, and I am afraid it is going to muck up some other things.
Will they keep decreasing the credit line as I keep paying off my balances? I am pretty peeved.
Thanks for the post.
Same here. Ten plus year member with (Anti) American Express. Limit reduced to nothing with no notice. Never been late, never been too high, NEVER using my American Express card again. Paying it off and giving my business to someone else. I will never do business with them again. They’re killing America quicker with this approach. I feel for you up and coming business who rely on Amex. Get a real card ASAP and discontinue your Amex.
Lowered my Amex limit in Feb. 2008 and again in May 2008. Started out with 24,000.
Now have $15,000. We pay the card off every month. American Express does not update balance with credit reports for over a month. So when they pull your FICO score it appears that you have too much out standing. They are profiling! They told my husband that they also look at where you live. If you live in an area with a lot of home foreclosures like MI, you are screwed. Class Action Lawsuit! File a complaint with the FTC!
Hello everyone!
Here’s what to do. I have had a perfect history with AMEX, 13 cards, impeccably handled.
STOP PAYMENTS ON YOUR AMEX CARDS. I know what your thinking, my credit, FICO, law suits etc..,. Not the case.
The reps in the credit department at AMEX are providing the cardholder with false information and blaming Experian for their decisions. This is against the law, as per the disclosure, (similar to providing false information on any application).
AMEX is suffering financially and by paying them monthly or in large payments, in return, you are only being punished. Even worse, your credit scores are dropping because of the limit decreases.
It will take years before they can recoup the money their cardholders owe them. In addition, the cost of legal proceedings is the last thing AMEX wants at the moment. By that time, the FTC will have already investigated AMEX and all claims will be dismissed as a result of misleading information and junk faxes.
By not paying, it actually puts the power in YOUR HANDS. When AMEX is hunting you down for their money, negotiations take place. If you owe $10,000, they will most likely take much much less just to settle the case.
They feel WE are a risk? A cardholder like myself and all of you who are responsible and pay on time for years at a time. Okay AMEX, your are correct, I am a risk, which is why I’m not paying you anymore.
I recently paid my annual $450.00 application fee for the platinum card I’ve had for 10 years. One month later, they placed a credit limit of $1500 on the card. I demanded I be refunded the application fee due to the change of agreement they implemented on their own accord (and for no reason). I suspect (in fact, I know) they “waited” until the annual fee was due before placing the limit, otherwis, I would not have renewed it. AMEX agreed to “place the card under investigation”. Bottom line, cardholders pay the fee BECAUSE their is no pre-set spending limit. Since there is now, I am entitled to a refund. If not, it is considered fraud.
I’ll repeat myself to everyone who has been affected by AMEX. DO NOT MAKE YOUR MONTHLY PAYMENTS. The credit bureaus are aware of AMEX situation and their skills and over time, your credit and scoring will be re-evaluated and washed out.
Same situation with me – Perfect 20+ year history woth AMEX. I made a $10,000 payment in Feb ruary and they lowered my limit by $10,000 the same day. Made a $3000 payment on two separate AMEX cards last week, same thing…lowered my by $3000 on each account. They call this “chasing the balance down.”
Obviously AMEX knows something about the future economic meltdown ahead that many American’s don’t…and they are scared. If they can treat a 20 year good customer like a piece of dirt, its pretty sad. This company used to be the “Rolls Royce” of CC companies…they useed to call their customers “valued cardmembers since 19**.” Now we are a nuisance and a threat. Read the excellent NY Times article from last week’s business section:
http://www.nytimes.com/2008/06/21/business/21credit.html?ei=5087&em=&en=f7a25c7b4111ec68&ex=1214193600&pagewanted=all
Here’s my similar story, but even worse I think –
http://www.flyertalk.com/forum/showthread.php?t=849035
This is annoying, me and my husband just have a good deal with a mortgage lender and the only thing he asked from us is to pay off our balances with AMEX so we can get the best rates and be approved without question. We know we can pay off the balances, so we did bought a house and have a closing date set later this month. And we did what was asked.. paid most of our debts with AMEX which is almost ALL our savings for the house. My husband is now 0 balance — and I have 30% balance left of what WAS my credit limit with AMEX. In just a FEW DAYS AMEX removed my husband’s credit limit — like DOWN TO $97 when he have no balance to begin with – what is that a $100 credit line??? And now I am so screwed because all the 70% available credit I have is GONE — totally GONE – I don’t have an available credit since AMEX made my limit equivalent to my balance. So instead of making our credit score BETTER and AMEX rewarding us for paying everything off we are punished???!!! Our credit score was good and we paid everything we owe with AMEX so we can have BETTER SCORES.. but paying off most of our debts just made our credit score go from good to bad.
I received a letter from AMEX today, 8/6/08 informing me that my credit line was decreased from 3500 to 500. I had not used my card for 6 months and the balance had been paid off. Immediately after receiving this letter, I called AMEX to close my account. In the letter I was told that the reasons involved in my credit line decrease were Length of time the accounts have been established, number of accounts with delinquency, (I have none), Amounts past due on the accounts (I have only 1 credit card with a balance that has never been delinquent) and Serious delinquency. The letter also states that the decision was made from the consumer reporting agency identified in the letter. There is NO consumer agency identified in the letter. What a shady way of doing business! why can’t they just tell their loyal customers that they’re hedging possible losses? I was an AMEX member for 3 years with no issues and I will NEVER be an AMEX member again. This is a company of losers.
American Express (AMEX) is hurting and has hurt so many small businesses it is crazy. Everyone should stop using AMEX and stop paying. Let the company go bankrupt themselves. So many small businesses relied on AMEX for cash flow, when they cut it off it caused major problem for countless small business owners. To learn about all of the aweful things American Express does look at this site: http://www.amexsux.com/
And it is not just the credit card division of American Express that hurts people. Look at what former Amerprise Financial (AMERIPRISE FINANCIAL is the new name – It used to be AMERICAN EXPRESS FINANCIAL ADVISORS) employees say how the company rips off people and is basically a pyramid scam.
http://www.amexsux.com/cgi-bin/yabb/YaBB.cgi?board=advisor
You should avoid american express at all costs, get rid of your AMEX card or cards, stop paying that company and let them go out of business. They are responsible for destroying so many small hard working businesses by cutting off needed cash flow even though those small businesses were good customers with a good history.
Wow…you know what AMEX did today? they called me asked me to join the credit protection that i need to pay 8 cents/dollar balance. I don’t have any balance for the credit card they just reduce to 500. They said, if i’m a member, they can increase back to 15,000 that i used to have. What a great way to sell the credit protection. I need to find an attorney for class action lawsuit.
I have American express travellers checks. Are my American Express travellers checks FDIC insured?. Are my Ameriacan Express travellers Checks insured if American express declares bankrupcy?
I wish I would have read some of these horror stories last week. I have the same perfect record with Amex. Last week I paid my property tax using my Amex line of credit checks. I wrote the check on the 25th of September. The day the check arrived at Amex (Oct 2nd) they reduced my line of credit and bounced the check, even though I had credit to clear the check when I wrote it. They swear the check was not the reason for the reduction and it was just bad timing. Tomorrow I get to go explain why the county will be getting a large bounced check and try to get out of the fees.
i’m soo f***ing pissed off right now @ amex, not even funny… they decrease my line of credit as well, i’m DONE with those mofos…
I just went through everything everyone above did. What a bunch of liars. They lied about my available credit. They lowered my credit without notice. They told me I was going to be reinstated and I wasn’t. When I called them on it the customer rep told me she had the authority to raise or lower my limits. She also told me I did not qualify for review for another 6 months. I asked for a Supervisor and she told me she had the same authority of a supervisor. When I got the supervisor on the phone she told me she did not have the authority to change credit limits and neither did the customer rep. 3 lies in 5 days. We also made a good faith payment when we were promised a credit reinstatement. If anyone is interested on how to sell AMEX stock short please let me know. I will be blogging on it thoroughly over the next 6 months on a new blog. Let’s all make money off of their amazing customer service.
Apologies in advance for the long story. I’ve had an Amex Blue without issue for about four or five years and have been quite tight with my use of it never going over 50% of the credit limit and usually paying it off in full within one to two months.
I was initially approved with somewhere around an $8K limit, then it bumped up over the years to $11K, then $16K, then somewhere over $20K, and finally earlier this year to $35K.
So, let’s begin the “fun”- Here’s a little timeline of events:
1. September 16th 2008 closing date statement:
$35,000 credit line. $2030 purchase made this month.
This is the only purchase I’ve made on the card all year.
Made a minimum payment, with the intent to pay off two equal chunks, or one full chunk, by the next statement. I consider myself pretty aware of credit scores and rules, so I figured the month of usage might help keep my card looking active, as I was thinking of beginning to use it a little more over the holidays for rewards points purposes. I saw a news piece a couple of weeks ago talking about credit card companies and the economic crisis going on right now, and how AMEX specifically was planning on decreasing limits on some percentage of its users.
2. Around October 7th, 2008:
I receive three balance transfer checks from AMEX blue in the mail. First time that I’ve ever received them over the life of my card membership.
3. October 8th, 2008 – (Wednesday):
I write one check to WaMu mastercard to pay off a balance of $2000.
I write another check for $1900 to pay off a citibank card that does not have online payment access.
Both go in the mail.
Just to clarify: at this point, I figured I am just using these checks to show some usage of them, in order to keep myself looking active as a blue card user.
I was about to zero out my balance on Amex Blue, and transfer $3900 to it. Then pay THAT balance off in the next cycle. I always figure if i have these cards and the cash to pay them off, why not get their free perks and usual purchase return protection, etc, rather than using cash directly. Hopefully at this point you can sense where this story is heading and the amount of frustration I about to experience.
You’ll also see why the dates, and days, are keeping this making some sense.
4. October 14, 2008. Tuesday:
I check my WaMU mastercard account and see that they quite quickly received the Amex Blue transfer check and posted the payment of $2000. I don’t give it any further thought. All seems fine. I don’t bother to check the citibank card.
5. October 15, 2008, yesterday.
I realize my blue card’s closing date is coming up. I decide to log on, and squeeze in a big payment before the closing date so that my statement has no payment due, and I wanted to make sure it was substantially more than the minimum.
To my dismay, I do not see my credit availability as “$32,970″ but it is INSTEAD $170.
That would mean that my card went from a $35000 limit with a $2000 balance down to a $2200 limit with a $2030 balance.
At this point, I’m confused. I check my WaMu account again and it’s fine, still shows a posted payment of $2000. I hurry and check the citibank card account, and see that the Amex Blue check for $1900 that i sent in has been received and had bounced on 10/14 (Tuesday). But this doesn’t explain the check sent to WaMu that they posted as a payment. That would mean that my limit is $2200 but my balance is now $4030… !?!?
I call AMEX. The customer support person can’t really help, and forwards me to the credit line department. I am on hold for 30 minutes and eventually hang up.
(by the way thanks for keeping up with me this long)
6. October 16, 2008, today:
Call AMEX credit department again at 9 am. They explain that on October 13th, 2008 (Monday), my card was “evaluated” and the credit line was dropped. They apparently sent out a letter that day too- but as of yesterday, I still hadn’t received it. They have no ability to explain their messup in sending out Balance transfer checks then creating a situation where they’d bounce!
I asked about my payment to WaMu using a check that appears to have been processed just fine- except it’s not showing on my Amex Blue online statement. The customer service person tells me “it’s going to be denied”…!
At that point, I asked to speak to a supervisor, and the wait time was so long that I had to leave my number and am now at 1pm EST still waiting for a call back.
ISN’T THIS A BIG PAIN?
Some thoughts- Might be assuming here, but AMEX’s credit line department must be getting A LOT of calls like this right now, hence the news report i mentioned earlier and the extreme wait times.
My fears now:
-I am going to get hit with a return payment on my WaMu card if that amex check bounces. As of today, 10/16, it still looks fine when i check the WaMU statement online. I don’t even carry the WaMu card, so I can’t even call them right now.
-My AMEX blue statement closing date is today, 10/16. When Amex reports to FICO, I will suddenly have a $2200 balance that for all appearances is maxed out with a $2030 credit line. This is a situation I’ve avoided my entire credit life.
I’m waiting for the supervisor callback until about 2pm, and am trying to find out if I can make a phone payment that would post TODAY, prior to the statement being generated. Otherwise, I can pay online but it won’t post in time to make the statement (it needs 24-72 hours, I would have paid yesterday, but I thought there was something much worse going on with the account, until i googled and found many articles such as this one).
To add insult to injury:
I have an AMEX platinum and gold. My wife and i use those quite regularly, basically as cash. Amex has begun offering a credit portion on those (in other words, you don’t have to pay it all off at once if you don’t want), and JUST NOW, in late september, enticed us to turn this feature on with a rate that was lower than our AMEX blue card! Don’t think I’d ever really use this feature, but figured it’s always good to have a backup. Each month they automatically put anything over $100 into that portion of your credit/charge list.
Easy way for them to make money, i guess.
So, now I’m just frustrated. $35K limit down to $2K. Overnight.
NO notice- except for the letter I’ll probably get in the mail today. And, all of it done WHILE other institutions are trying to cash the amex balance transfer checks!!
BLAH!
I had the same thing happen to me just yesterday – 10/15/08. Had a credit line of $25,0000.00 used two of the transfer checks, both under $700.00 each. Almost two weeks after using them I received a letter stating they lowered my credit line (without telling me) and were not going to honor the checks I used. I’ve been a member with them since 1991 never late or missed on a payment.
Typo – My credit line was $25,000.00 not $25,0000.00. (I wish)
I was also posting this on another page- http://www.totalnoid.com/2008/06/10/un-american-express-targeting-profiles-to-decrease-credit-lines/#comment-3383
So in one piece of good news, my online payment attempt of $1000 was actually posted JUST in time and at least my statement now will show a $1030 balance on a card with a $2200 limit- I’m no longer in fear of how my FICO is affected.
I have yet to get them on the phone after four solid attempts- even just sitting at work I’ve had to hang up after half hour wait times. As of today, Saturday 10/18, I DID see that the balance transfer check to WaMU mastercard bounced on 10/14. I guess WaMU’s site didn’t update until today- and I was hit with a $35 fee. Based on everyone’s comments and the fact that it’s another institution I highly doubt I am going to get this refunded to me by AMEX blue, but it can’t hurt to complain and try to get this refunded.
I’m definitely paying this card off after I try to get that refund. I guess I may as well close it.
You know what the really funny part is? Now at the bottom of my online statement, the button for “request a credit line increase” is suddenly back! HA! Maybe i should click it…
I would have to say that when I opened my statement today I was floored. When i called and spent about a hour on hold, I to, received the same excuses over and over again, blaming the credit report for the reason for the decrease. When I pulled the report and called back, the excuses just kept changing. When I received my 20 years ago I felt honored now it’s a piece of plastic.
Costco Amex was my favorite card. Used it for everything… tho haven’t spent that much in the last few months and suddenly without warning:
I logged in today and found my credit limit dropped from $30,000 to $3,000 !!
Good lord… I’ve never had a late payment.. often paid balances in full, sometimes carried a balance. Weird. I may have to switch to a different card for daily use despite the cash back the Costco Amex offers. Oye. Oh, and my FICOS are all in the mid 700s and no account of any kind has ever had a late or missed payment. I’d die before I allowed a payment to be late on any account and am rewarded this way?…
I guess I two can include myself in the company of good people made to feel like a dead beat by America Express. But did anyone receive a reason for a reduction is that they shopped at store used by people that had a history of not paying American Express. I feel american express is targeting people. Customer loyality is no longer a factor to them. I wonder how many employees that is performing this credit review will have jobs once this is over? Good times will return and who will want an american express card please leave home without it
Totally understand! I have been a member since 1985 have 4 accounts with Am EX. I got e mail last week letting me know they were dropping my Delta Plat. card to 1,400 from 14,000. I don’t even have a balance and when I do I pay in full. I have never made late payments pay early. As well I have gotten the same answer something that was on your credit report. I am very aware of my credit report and there is nothing on it that justifies this action from AM EX.
Then they want to penalize us if we close the accounts by dropping our score lower. I have to agree AM EX is no more than a plastic card taking up room in my wallet. I have switched to using my debit. Oh I miss the rewards and points I get from the cards but I refuse to let them make another dime off of me with using their cards further. I suggest you all do the same. This crisis will not last forever and when they come calling I will not be answering. It is said that I have worked my entire life for great credit not good great! They are not going to make me feel like a loser as they are the losers since they have no clue how to run a business. Just an after thought! Have any of you out there continued to get expensive packaged offers from Am EX that surly cost to print…that you cannot use your AM EX on because they lowered your limit? That cracks me up. I will not be paying any fees to them when they are up…
Arrg, just wanted to add my sad story.. though after reading the above stories, mine isn’t so bad.
I had a credit limit of $18,000 for the past 12 years. Never late.
As of a year ago, I had a high balance of $16,000, that I was slowly paying down, at a rate of $800/month.
Every few months, they would “chase my balance” and reduce my credit limit by a couple thousand. In the past six months, I got more aggressive, and started paying off about $1200/month. I finally, paid off the card last month! My credit limit was $12,000.
After a month of zero balance, they reduced my credit limit to $1000.
My credit scores are all above 700, and I was never late in 12 years… but I guess they no longer want my business.
I used my card as working capital for my business putting over $300,000.00 per year through it. My Limit has been reduced from $50K to $15 K and I expect it to go even lower.
What pisses me off the most is all the lies their customer service reps are telling us. One today went as far as telling me that it was because of “Public Records” showing up on my credit report saying that maybe someone has sued me or maybe some taxes I didn’t pay. I immediately pulled reports from all agencies finding no such “Public Records” on any of them and their claims of other stuff that was supposedly in my credit report was lies too.
I read today that they are laying off 7,000 employees, since they no longer want our money I can understand why they can’t make payroll.
i thought i would do some surfing to see if there were any stories similar to my experiance with amex earlier today. a card member since 2000, i had a 30,000 limit on my amex blue.today i’m rolling large with a 3,500 limit. after talking with amex there seems to be a common thread in that they first try to blame experian. once their called on that they offer some scripted response that the reduction is based on income to debt ratio. once we crossed that bridge (less debt and more income in the last 90 days). my point… that during our relationship close to 200k traded hands and not one missed payment and perhaps there should be a bit more due dilligence before making such a move.
i was offered the advice…to continue using my gold card.my advice was something along the lines of “stupid gas on crazy fire” and that there’s no (financial) cherry picking allowed when it comes to my financial partners.
the fact is that amex is pulling back and pre-empting their exposure to the upcoming credit card crisis (be very afraid)and they are casting a very wide net and not sorting out the catch.
life takes visa…and my bank was more than happy to pick up when amex…took off.
yea im shocked i have a good to excellent fico score been between 720 and 760 the last 3 times i checked it i have had an amex blue card for about 6 years now started with a 7000 limit they raised it to 15000 at once point i owed 4000 dollars on it but payed it off in full never missed a payment with amex never been late on any of my bills not even once!! in my entire life.nothing!! im 30 years old and have had credit since i was 18yrs old and financed and payed off ontime 3 auto loans! i dont get it i did everything right i do carry a balances on some cards but not amex wtf!!! i got an email last night and was gonna call and ask whats going on thought id google my situation and from what ive read probably wont do any good im just not ever gonna use my amex card again oh did i mention they reduced me to 1200 dollars kind of insulting my very first credit card had an 800 dollar limit! 1500 to 1200 always ontime with payments payed in full most months i used the damn thing goot to excellent credit score here so now im gonna take a hit on my fico because amex is about to go bankrupt i guess guess i will be leaving home without that little card!!
I just got the dreaded letter last night–my AMEX credit limit was cut from $16,800 to $4,900. I also have the same mid 700s FICO scores as many of the people here and it’s a bit of a relief to be in good company, but it’s also scary because it’s sounding like the Credit Crunch, sequel to the already devastating Housing Crunch, is happening and spreading fast. I don’t know why they are doing this to so many highly credit-worthy people so close to the holidays, when the most of us make them the most money. It’s like self-sabotage, not only to them but to our economy in general. Now people will be even less willing/able to shop and improve the country’s sales revenues this holiday season, which is sure to beat up the market even more. It’s like a doom spiral that AMEX is bent fueling. I see the good part, which is that they will also be curtailing the more irresponsible ones who are likely to shop well beyond their means in the following months–but this is just too sweeping. Not to mention for people who watch their credit and try to stay within that 30% balance vs. credit limit sweet spot, this is going to cause some damage to the FICO numbers…And, holiday or not, that means less purchasing power to buy durables and large-ticket items for a huge chunk of what were ’strong’ consumers…Boy, it’s going to get scary and probably ugly. Not that they’re listening, but, why American Express, WHY? Are you trying to put a ‘CLOSED’ sign on as many American businesses as possible. Okay fine, I sort of know why, but…ARGH!
So-called Solutions:
In the midst of my mini-freak-out I called Amex and eventually spoke to some token supervisor, who kindly suggested that, while I probably won’t get my previous credit limit back any time soon, I can boost my card usage. This, he says, will make Amex adjust my credit limit. Frightening. And probably expensive, too, when they hit me with an overage fee. After apologizing on behalf of Amex, he gave me the number for the Financial Review Team which opens at 1PM EST weekends and 8 AM EST weekdays: 800.842.5303. Lots of waiting, and several apologetic voices later, I again spoke to some kind of supervisor. She was very patient with my rants and suggested I fax the first two pages of my credit report summary (since the Experian report isn’t accurate…”Too many inquiries in the last 12 months” when my credit monitoring summary says zero inquiries, etc…) to them.
Whoa, this got long.
Simple… If you have an Amex card, if you know anyone who has an Amex card, tell them to call and cancel every single one. Yes, it might lower your score a bit( or maybe not!) But, we must all sacrifice a bit to send a message. DO IT NOW. Start a CANCEL YOUR AX CARD CAMPAIGN in your circle of friends. Make t-shirts etc…
I just recently received an email from AMEX. It advises me that after review of my history they are reducing my credit limit. Seems they have decided to take me from the high side down to six grand (6000.00) I did exactly what all should do. I advised Amex that I will await their writter letter with explanation which they tell me is forthcoming. At said time this letter arrives I will the do my own review. Should I find that Amex is using card holders as cover for their own internal failure I will the return the card ,balance in full and will never again utilize their services. As I am sure many are aware, AMEX is at this time facing a very high amount of card holder defaults. This in turn has caused most if not all financial experts to call for a dump of AMEX stock,citing them as a sinking ship. Sadly it now appears that AMEX in an effort to save face has decided to use their card holders as scape goats so to speak. I suggest that all consider Discover Card for their needs. I have found no issues there and I have been with them as long as AMEX. By the way to all I say ,don’t feel bad. I am a self employed Federal Gov. Contractor, 5 star top of the line D&B rating, and far more than enough in liquid to cover more than Amex has ever extended to me .
Hopefully we’ll have a class action coming on against AMEX , one we can all take part in.
Cordially,
R.A.Breeden
ceo4profit@aol.com
i just found out. it went from 16000 to 1000 , ha i think it is not worth to keep it open!!1
I am joining the club. I have been a Optima holder since 1998, and have had a $50k limit on that for at least 6 or 7 years. Today, I get a letter reducing my limit to 100 over my current balance. Why? They say: total debt to hi (odd, it’s the lowest it’s been in two years); the balance on my amex is too high, relative to available (odd, lowering my credit limit will fix this?); my favorite, “Other customers who have used their card at establishments where you recently shopped have a poor repayment history with AmEx”. Wow. I wonder how those merchants feel about that (who are they, anyway?). Between myself and my business, I have Gold, Plat Optima, Blue, and a Centurion Black Business card. I spend about $1.8mm/yr with them. My Fico’s are 750+.
This is unreal, and I plan to make a shift away from AmEx as much as possible.
I am also in the same scenario as all the above. just started tonight moving all my “automatic” payments from AmEx over to Discover or Mastercard. Been with AmEx for 20+ years and they have the audacity to treat a great customer this way. Makes me sick.
How do we file a class action law suit? Shouldnt there be some sort of protection against this chasing the balance thing and the fact that we are now considered a higher debt ratio with our credit scores? I cancelled all my cards today. Very very angry!
This really is an outrage. I have closed all my cards so they won’t be able to do this again to me. As an investor also I am going to SELL THE STOCK,and I advise everyone else to do the same. Post on every website. The Street, Marketwatch, everywhere. Also flood corporate with calls. This may get their attention. 212-640-2000. I wonder where Ken’s staff buys his laundry detergent. Hope it’s not Costco! Maybe Saks (oh wait, Saks doesnt sell laundry detergent- guess he’s just going to be dirty!) LOL
Here’s some people to call:
Leslie Berland
Director, Public Affairs and Communications – Corporate and Marketing Communications
212.640.5142 / 212.640.9238 (fax)
leslie.a.berland@aexp.com
Judy Tenzer
Vice President, Public Affairs and Communications – Corporate Social Responsibility
212.640.0555 / 212.640.9238 (fax)
judy.g.tenzer@aexp.com
Molly Faust
Vice President, Public Affairs and Communications – Consumer Services
212.640.0624 / 212.640.9238 (fax)
molly.faust@aexp.com
Good Luck!!!
Shame on AMEX!
They sent an email to me today notifying me of my credit limit decrease. I have a high credit score and have never been late on my AMEX Blue card payments. I always pay more than the minimum due if not all. AMEX claims that the decrease is due to information they received from Experian. I was told that my credit report summary shows too many inquiries, and too many outstanding balances. All false, because I haven’t even applied for any new credit within 12 months. Nor do I have excessive outstanding balances. I’m just going to pay off my balance and send back my card cut in half. I don’t have time for the credit card games. They get us to accept these damn offers and make it sound so good. Then they just go and do something like this. We’d all just be better off with secured credit cards, then we wouldn’t have to worry about unexpected limit decreases. These credit card companies are becoming so unpredictable that its almost scary! They feel they can just do what ever they want. WITHOUT US, THEY ARE NOTHING!
Just got an email stating my limit was reduced from $10,000 to $6,000. Am not happy about it. The rep at AMEX was absolutely no help. She brought up the usual high amount of revolving outstanding to available yada yada yada. I told her I have a copy of my credit report and we could go over it together and she declined. I have a home loan and my only credit card debt is with AMEX. Never late on a payment ever. I try to pay my balance every month and do 90% of the time. I use it often and have charged / paid back $60,000 this year alone. This decrease is ridiculous. I have a fully available credit line with Discover and MC, so I will be transitioning my business there the next month. Absolutely unbelievable. I thought AMEX was supposed to be a cut above the rest?
Just got the dreaded email: they just cut my limit on the AMEX Hilton card from $30K to $17.7K.
Now I’m wondering what is going to happen to my AMEX Platinum card!
I received two surprise emails on Thanksgiving Day! Chickens! Now that AMEX is playing toesies with the disgustingly mismanaged bailout, my love affair with AMEX is over.
Every account has a statistical value based on usage. This is complex and will impact credit limit decrease and increase. Those accounts paid in full or rarely used are of no use to a credit card company–virtually no income and added cost to maintain an open and unused account. A second factor is risk quotient. How likely is the customer to become a chargeoff–late payments and high balances, finance charges equal to minimum payment due?
American Express has dropped my two credit card limits by over 90% each. Each was dropped to the balance owed. I, like others, have paid my bill in full and have never been late. My evaluation is simple: American Express has mismanaged its business practices and although I have managed mine–I bear the consequences. I will not be using American Express until I am certain American Express will remain in business. Recently American Express laid off 10,000 employees and there was very little difference in the price of the stock. Good old AMEX is in deep doodoo.
Discover has my business. Better rewards, no annual fees, excellent customer service, a better run company all around.
AMEX took away 70k of our available credit with no warning. What they are doing should be against the law. I wrote a blog with some steps you can take to fight back:
http://amexcreditreduction.blogspot.com/
At the same time they are doing this, they are also asking for BILLIONS from taxpayers. They want taxpayer money that was designed to INCREASE liquidity.
Once again, they little people get the shaft, while corporate america gets a bailout. Shameful.
Same ole song and dance here…..Amex dropped my credit limit over 70% and gave me reasons that just were not true. I pulled all three credit reports, paid for my FICO score (which they required to review the account) and faxed it all to them for their “review” and they simply replied back….sorry…..your account stays where it is. What really pisses me off is the fact that they lie about the reasons. If they are having tough times….fine. Tell us and let us prepare. They could have come to their cardholders and simply said “In a few months we will be forced to lower your credit limit due to economic times…..”. That would give us time to prepare.
WOW!!! i just got a peice of paper in the mail saying that my credit limit was reduced.. i called amex and they said the same story to me. that my credit had significantly changed… which is a crock!!!
i asked them to cancel my card and to shove there card up there ass!!!
in all my life i have never had a decrease in my credit limit on a card!!!
EVERYONE DROP AMEX
I received the news of mine while at the counter of an upscale store purchasing product and was “denied”! The embarrassment was totally humiliating!
By the way, AMEX doubles the manufacturer’s warranty on products purchased, I can see alot of my “year-old” items beginning to break and need servicing – hehehehe!!
My AMEX account was also reduced, just above my balance. I have not once been late on a payment, and they made the excuse that Experian gave me a bad rating; however, Experian is a fradulent company, and now I will have to get Experian report and spend years battling with them.
Same story. Business card with 50K. My vendors started calling me the other day saying that my automatic payments with AMEX were being declines. I called AMEX for them to tell me that my business account was under review, but that they could not tell me why. I am still waiting to see what is going on. I cannot use the account, but they have not lowered my limit, YET. I think that maybe businesses such as myself that accept AMEX should just stop. That will hurt them more than selling their stock.
It’s a shame that American Express took some TARP money, but when it comes to people that owe them money they will not be so kind. All of these credit companies should not receive any TARP money.
around 3 years ago, I had applied for an amex clear. Credit limit was around 8500 dollars. I transferred my higher interest cards to this amex clear for 3.99% transfer rate for life of the loan. Amex continues to “chase my balance” and I will continue to pay the min. payment. I don’t use the card for anything other than those few transfers that I had done in the beginning. The decrease in my credit limit with amex has caused my fico score to drop from 730 to 685. It’s crap. AMEX is crooked. I’m wanting to apply for a home mortgage so we can get my family into a larger home but am not sure how this would affect my application. AMEX should burn
Everyone should just stop paying american express all together. All of the money spent on advertising in the past few months and all while treating great credit, high limit customers that pay bills on time like shit. It will be many years before credit has the same value it once had. Take this opportunity to receive a bail out of your own.
Word of Warning for all of you that are having credit amounts reduced and collect Membership Rewards Poionts. In Dec 08 AMEX lowered my credit from 13K to 2.3K. Just a couple of weeks ago, my card was rejected at Costco. Turns out AMEX cancelled my card and took ALL of my Reward points. They explained it was cancelled due to credit score.. My credit score has been stable for the past two years.. I’m exploring all of my options, but am committed to inform everyone possible of this unethical practice by AMEX
After 13 years with American Express Platinum I decided to cancel my cards today following the most outrageous argumentations delivered why my Credit from the higher $20000 was reduced without any warning to $4000. I informed the credit officer and their supervisor that my reaction is caused by their inability to explain to me the reasons for the credit decline. No questions were asked and no efforts presented to understand my case. What a disgrace this is to company that I proudly associated myself for so many years.
I also have an Amx card but so far no credit limit decrease, however I did have two Bank of America Visa cards with limits 0f 11,000 on both reduced to $500 with the letter stating that I had sufficient debt with other creditors. No debt, all balances paid off each month with a credit score of 790. I asked the “credit analyst” for an explanation and she put me on hold to check Equifax. She came back on the line and told me the letter had been sent in error but she could not reinstate my limit. What a crock. Another “analyst” told me my account had been flagged because I transferred a large sum of money to another account. Seems B of A has some tricks up it sleeves also. I fear that Amex may follow suit.
American Express is the worst. I gave up on them years ago, hwvr, still have a sign and travel balance on a gold card of about 1300 which I pay on time every month.do you know they sent my account to debt collectors to get me to pay it off faster? they call my home every day and are very aggressive.They must be in dire straits if they are chasing someone like this who pays them?
God knows what they do to people who don’t
Let’s not forget they took $3.39 billion in TARP funds from us, the taxpayer. Report them to every gov’t watchdog group that you can.
I hope they go under
Another similar story, credit line was decreased from $25000 to $6500 which is $300 above my current balance. Customer service folk were of no help.
Ok ,About a month ago I heard from a couple of my friends they went to similar nightmares with AMEX as most of you have and I just didn’t believed them at the time ( I believed they have missed payments or late payments and AMEX did what it was best for them …SHAME ON ME FOR THAT) ,well I know better today .
My Amex Blue just send me an email notifying me about my limit decrease from $19 K to $1400 with $140 available credit… HAHAHA …!!!
Each month I have paid in full my cards and I have not been late with my payments ,I just paid them over $9k yesterday on the Blue card and over $5k on the platinum one …so I’m getting on the phone and ask to speak with a manager right way, I got manager D….. on the phone and she has the audacity to tell me a bunch of lies from the script in front of her(-(-Did any of you knew Amex hires actors as mangers? –I didn’t but I found out today after my conversation with this manager ):-
Due to the fact that Amex have received new information about your credit, Amex have decided to decrease your limit ! – AMEX MANAGER D..
-What kind of information –ME
-You have been late on your new mortgage and have collections on your record – AMEX MANAGER D…
-What new mortgage ,I don’t have a new mortgage or collections –ME
Quiet time ( I believe she was checking her system for a different story she could give me )
-Well.. I’m going to check my credit report and my online banking right now, I’m subscribed to Equifax for all 3 credit agency and get daily updates if anything changes …..etc –ME
To make a long story short I’m fortuned enough to have my own company and make a decent living ,I have 3 cars paid off and one mortgage on a house I keep in IL because I have an office there ( I live in CA no mortgage ),I pay all my credit cards in time and in full – it turns out this manager is lying to me about the information they have about me –I have no late mortgage payments and not a big amount of debt( the house in IL is more than half paid +3 cars paid off ( Mercedes ,Cadillac ,Toyota) and I don’t have any collections on me with any of the 3 credit agency –So you be the judge of that !
The funny part about all this is now I realized how good their judgment is when they approved me for a card many years ago I had a hard time with money and lots of debt (my credit score was somewhere around 550 , at the time I would not have approved myself for a credit card –but I got approved by AMEX- ,since then I have paid all my debt and hired Ovation Law to watch over my credit score ) –but what do I know?… Amex has their own way on getting the CORECT information on us !
Please note the only reason I have put all this information is because I want to let everyone know what kind of business AMEX is conducting and how poorly they treat their customers ,I would have appreciate a call or a notification with a DATE before they decrease my limit the day after I paid them off and give me the real reason for doing so .
I have decided not to close my Amex credit card as that will affect my credit, instead I will not use Amex and get my business to a credit card company that treats me better that this (after reading some of the stories on this website I defiantly do not want to have a surprise when I’m out with a client for lunch or dinner and have my credit card declined in front of them ).
P.S -I just want to know what Costco whom is one of their biggest merchant will have to say in about 6 months when they will notice a $$ decrease on their books …from now on I will only shop at Sam’s club and also will notify Costco to send a thank you note to Amex for losing a good customer -I believe we should all notify Costco about this .
One of the best investments I made was to pay $200 /year to Equifax to have me notified of any changes on my credit report –I was able to tell the lies Amex told me while on the phone with them .
God bless you all .
I cancelled my green card 4 weeks ago after having starting using the Platinum Hilton AMEX a few months back. I cancelled the green card because I didn’t want to pay the $55 annual fee while the other card was free. After 3 months of travel expenses averaging $3000 per month and all paid off in full and early…AMEX reduced my limit from $15,000 to $1,000. I called…got the same lame excuse most others here have posted and told them I would pay off the $500 that I had on the card and cancel my relationship with AMEX for good. I agree about COSTCO and will send them a note. I have always loved AMEX and been a very good customer for 19 years…no more. I simply won’t give them any business. I am sorry there is a credit crunch…but I didn’t cause it and I am not going to let a company like AMEX punish me for it. Good Bye AMEX.
All i can say is F***k American Express. Will never ever use them again.
Amex is guilty of chasing down balances and closing down small business accounts. It is systemic and they do not care at all. The impact is masses of lower FICO scores and inability to grow business in the middle of a recession. The New York Times is doing an article on this specific type of activity by American Express as well as how it has impacted me personally. If anyone wants to speak to the reporter, email me and I am happy to share.
Amex cut our line by $20K, and now it looks like our card is maxed out. This couldn’t come at a worse time because my husband and I just applied for a mortgage, and now our debt to available credit ratio is going to go up, our credit scores will go down, and our mortgage interest rate will probably be higher now. Literally, this all happened overnight. And, as if it could get any worse, I just had to put $5K in business expenses on my Amex last month, which is probably why they lowered the credit line, and I haven’t been reimbursed by my company yet. I’m taking this issue up with my boss, too, as the argument as to why I need a corporate card. This SUCKS. My company literally is costing me thousands of dollars in an increase in mortgage interest rate because they haven’t reimbursed me yet!
Wow, Amex won’t be in business long if they treat their best customers like this. Take me — have never missed a payment… ever! 10 years… I’m 28 and I’ve had accounts with them since 18 yo. So while I don’t have 30 years of history, I have the maximum I *can* have… never missed a payment, have paid 500%-1000% of my minimum payment. Have dropped $20k to pay of a credit card at one time… brilliant payment history… have even paid off my other cards. I have no credit card debt at the moment… just cars/houses and they still say that’s not enough. They dropped my $32k limit to $22k like a year ago. And since I’ve dropped 20k to pay off that $22k and eventually paid it off, they have brought that limit to $1000. A measly $1000?????? from $32k? The same has happened with my other 3 accounts with them. I don’t want to close them because that will make my credit worse. But it’s like you want to get them back but you can’t. It’s the worst position to be in. I guess I’ll just keep doing what I’m doing, get famous, and once I have some spotlight, get my revenge that way! I WILL NOT GET A BLACK CARD, PLUM CARD, or any card if they can’t treat a good customer right. I can run my business expenses through them right now and easily meet the spending requirements of a black card but after these last 2 years, I’d be a fool to want anything from them. Oh well, what can ya say. Just gotta keep moving on. Be encouraged everyone! They’re doing it to everyone and I guess it’s not “personal.”
You know, I feel a lot better now knowing that I am not the only one that this has happened to. I am, no, I WAS a 10+ year goldcard and Blue Amex cardholder. I literally just came back from a trip and went immediately to my computer. Why? Because I am so shocked over the day I just had … I was in another state when I was informed of my limit decrease. I found out when I had tried to make a purchase and my card was declined. I called AMEX customer service. They informed me that I couldn’t make any more purchases because I was now over my credit limit. How could that be? Well, “we just decreased your limit today.” What??!! How could your company just do that? Without any warning whatsoever. I quickly told the rep that THIS WAS THE ONLY CARD I HAD ON ME!!!!! How am I going to pay for the rental car I’m in when I go to return it? Or the gas that I need to drive back to California? They had no answer for me. They also sounded like they could care less. After 10+ years with this company, over 700 FICO, and never making a late payment in my life … THIS is how you guys are going to treat me??!! You’re literally going to LEAVE ME STRANDED in another freak’n state??? I’ll never forget this momment for as long as I live. Who can forget crying and begging over the phone to a customer service representative to at least let me pay for the gas I need to get back home. I feel betrayed in so many ways. I was so livid, I couldn’t keep myself from canceling both my cards right there and then. I felt like I was breaking up with a boyfriend or something. It was that painful!! I had to call my husband to come and bail me out of this disaster. I am now home (several hours later than planned obviously), safe, and in complete dismay. If I hear of any lawsuit regarding these decreases, I will definitely be involved. My treatment was inhumane, unjust, and unacceptable.
- Celeste Molina
I totally understand everyone’s concerns and complaints. This company has hurt many people including myself. I pride myself on maintaining a good credit score, and for what? For Amex to cancel me because I was in a dispute with another credit card company. In my opinion, it is none of their business what is going on with me and my other creditors. We have “never” once been late with Amex, but they took it upon themselves to “randomly” look at my other accounts and decided to cancel me. I finally resolved the problem I was having with my other creditor, which was ultimately their fault in the first place, but Amex didn’t care. Amex canceled both my accounts and I don’t think I deserved such treatment. What did my other account have to do with them anyway? So with all that being said, I will NEVER EVER accept an offer from them. I hope they go bankrupt!!!!
Wow I thought it was just me. My credit line was 8$8000.00 and I made a purchase today and then two hours later received a call stating my balance had been cut down to $4000.00. I was like wtf. I called and they blamed it on the credit bureaus and all that jazz. I was so pissed. I want to close the account so bad but fear it’ll hurt my score. But wait AMEX is not the only one doing it. My good friend told me Chase cut her credit line down too. Looks like things are really bad. I’m so angry because my credit history is really good and I always get increases not DECREASES!!
Same story here. My available credit has been going down with my payments on the amer blue account. Didn’t care because at the 3.99% interest rate I can take my time and use the $ elsewhere. I just received a letter stating that the 3.99 fixed is going to 14+% variable. Only a $6000 balance but I will not make another payment to them. My spouse has an 800 credit score and plenty of available credit on him so out of spite they can do whatever they want to my credit. I would have paid as agreed until my balace was paid off but will not pay extra money to get sc*&^ed.
Back in October 2008 I tried spending about $200 at Target for Christmas decorations and got declined. I was shocked! I found out when I got home (and logged in online) that my “limit” now showed “$0 available” (instead of the “no pre-set spending limit”). After some investigating and a phone call, I found out that my Green card had an effective limit of $1000 due to my credit score and income (their records showed my income as 15k, what I made back in high school when I first applied for the account in 2005, very out of date!). I just dealt with the issue… I regularly charged about 800 to 2000 to my card monthly (mainly gas and food, I’m a college student). After some time, my “effective” limit went to 1500. Yay, lol.
But just the other day I logged in to make a payment and my Green now shows ‘no preset spending limit’ (again). It looks like the “limit” has been removed? I’m just wondering if anyone else has started to experience this? Perhaps now that things are improving and –the sky isn’t falling–, they’re loosening the leash on credit.
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