Comments on: American Express Cutting Credit Limits http://www.smartcreditchoices.com/blog/2008/10/american-express-credit-limits/ Be Smart About Credit Cards Thu, 05 Jan 2012 21:42:19 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Tim Fuhrman http://www.smartcreditchoices.com/blog/2008/10/american-express-credit-limits/comment-page-1/#comment-1441 Tim Fuhrman Fri, 24 Dec 2010 05:32:01 +0000 http://www.smartcreditchoices.com/blog/?p=124#comment-1441 Yes this happened to me as well, although I am a US Bank Customer in excellent standing with a 780 FICO, never had a bad check, never cashed a bad check, always paid large amounts way over the minimum monthly required payment or paid off, also paid at least 2 to 3 weeks ahead but on 5-19 they reduced my business card from 10,000.000 to 3,000.00 to what I owed I tried to have it reinstated all to no avail. I figured I’ll just pay it down in one month paid down 1,500.00 ½ and again it was reduced to 1,500.00 so I canceled the card. (Business does not get reported to basic credit bureaus only Dun & Brad Street) . On 09-10 another US Bank Card reduced, after a 2hr conversation with the customer service I had it reinstated. On 10-10, another US Bank card was given a $5,000.00 increase along with a letter that said: “Because of you’re Excellent credit with us we are increasing your credit limit” On 12-10 after not even using the two cards both were cut to existing balances, this time I did not call, as each time you call to complain they run you your credit, bringing down your FICO and further screwing you. Now you can not leave, canceling your credit brings down the FICO as well, and other creditors see the Low FICO and could reduce there credit with you as well. This can cause higher rates on Insurance, lack of accessible capital to work with, and causes a downward spiral that is out of your control. Lucky I make good money and will pay off this dept fast; although I will take a FICO hit for a few months I will recover. This is the end of credit for good people SAD. Yes this happened to me as well, although I am a US Bank Customer in excellent standing with a 780 FICO, never had a bad check, never cashed a bad check, always paid large amounts way over the minimum monthly required payment or paid off, also paid at least 2 to 3 weeks ahead but on 5-19 they reduced my business card from 10,000.000 to 3,000.00 to what I owed I tried to have it reinstated all to no avail. I figured I’ll just pay it down in one month paid down 1,500.00 ½ and again it was reduced to 1,500.00 so I canceled the card. (Business does not get reported to basic credit bureaus only Dun & Brad Street) . On 09-10 another US Bank Card reduced, after a 2hr conversation with the customer service I had it reinstated. On 10-10, another US Bank card was given a $5,000.00 increase along with a letter that said:
“Because of you’re Excellent credit with us we are increasing your credit limit”
On 12-10 after not even using the two cards both were cut to existing balances, this time I did not call, as each time you call to complain they run you your credit, bringing down your FICO and further screwing you. Now you can not leave, canceling your credit brings down the FICO as well, and other creditors see the Low FICO and could reduce there credit with you as well.
This can cause higher rates on Insurance, lack of accessible capital to work with, and causes a downward spiral that is out of your control. Lucky I make good money and will pay off this dept fast; although I will take a FICO hit for a few months I will recover. This is the end of credit for good people SAD.

]]> By: smart credit choices http://www.smartcreditchoices.com/blog/2008/10/american-express-credit-limits/comment-page-1/#comment-502 smart credit choices Thu, 15 Oct 2009 14:44:29 +0000 http://www.smartcreditchoices.com/blog/?p=124#comment-502 Jose, It continues to surprise me that these credit limit cuts are so severe. Having your limit cut to your balance will have a very large negative impact on your credit score. If you can get a new credit card before this is reflected on your credit report, it may help limit the damage to your credit score, as your credit utilization ratio will be lower than 100% and you will not appear maxed out. Jose,

It continues to surprise me that these credit limit cuts are so severe. Having your limit cut to your balance will have a very large negative impact on your credit score. If you can get a new credit card before this is reflected on your credit report, it may help limit the damage to your credit score, as your credit utilization ratio will be lower than 100% and you will not appear maxed out.

]]> By: Jose http://www.smartcreditchoices.com/blog/2008/10/american-express-credit-limits/comment-page-1/#comment-501 Jose Thu, 15 Oct 2009 14:12:12 +0000 http://www.smartcreditchoices.com/blog/?p=124#comment-501 My credit limit went down from 28,800.00 to 10,000.00. The thing that really bothered me is that I owe 10,000.00, so they let me with no available credit to use and now I look like I ranked up the card to the max. Of course, when I called, nobody can tell me (or will tell me) why they are doing this. My credit is spotless. I suggest to everyone on this situation to write a letter to your congressman, US senator, the FTC and to your state attorney's office. I hope that the US Attorney General file a class-action law suit against them. I understand the fact of lowering the limits on people that are just not responsible with their finances, however, I think that to do that to the rest of the responsible ones, like me, is consider unrespectful nad demeaning. They are doble-dipping since they have got money from the goverment to help with their financial crisis. My credit limit went down from 28,800.00 to 10,000.00. The thing that really bothered me is that I owe 10,000.00, so they let me with no available credit to use and now I look like I ranked up the card to the max. Of course, when I called, nobody can tell me (or will tell me) why they are doing this. My credit is spotless. I suggest to everyone on this situation to write a letter to your congressman, US senator, the FTC and to your state attorney’s office. I hope that the US Attorney General file a class-action law suit against them. I understand the fact of lowering the limits on people that are just not responsible with their finances, however, I think that to do that to the rest of the responsible ones, like me, is consider unrespectful nad demeaning. They are doble-dipping since they have got money from the goverment to help with their financial crisis.

]]> By: admin http://www.smartcreditchoices.com/blog/2008/10/american-express-credit-limits/comment-page-1/#comment-146 admin Wed, 19 Nov 2008 22:50:53 +0000 http://www.smartcreditchoices.com/blog/?p=124#comment-146 I sympathize with your problem. Many cardholders are having the same issue, and the effect having a lower credit limit has on credit scores adds insult to injury. I would suggest, however, that you keep your credit card open. Even if you choose not to use it, closing the card will hurt your score even more than leaving it open with the lowered limit. Another option you could consider is to pre-pay your credit card, effectively using it as a debit card. This can be especially useful right before your statement date, as this will insure your credit report does not show you using a substantial portion of your available limit. Finally, you may find another bank willing to offer you a better deal and higher credit limit. Take a look at offers from Capital One, Citibank, or Discover. You can compare these offers in the business credit card section of our website (see http://smartcreditchoices.com/showcategories.php?showcat=business for more detaills). We hope this helps you out. Let us know if it does. I sympathize with your problem. Many cardholders are having the same issue, and the effect having a lower credit limit has on credit scores adds insult to injury. I would suggest, however, that you keep your credit card open. Even if you choose not to use it, closing the card will hurt your score even more than leaving it open with the lowered limit.

Another option you could consider is to pre-pay your credit card, effectively using it as a debit card. This can be especially useful right before your statement date, as this will insure your credit report does not show you using a substantial portion of your available limit.

Finally, you may find another bank willing to offer you a better deal and higher credit limit. Take a look at offers from Capital One, Citibank, or Discover. You can compare these offers in the business credit card section of our website (see http://smartcreditchoices.com/showcategories.php?showcat=business for more detaills).

We hope this helps you out. Let us know if it does.

]]> By: Clynema http://www.smartcreditchoices.com/blog/2008/10/american-express-credit-limits/comment-page-1/#comment-145 Clynema Wed, 19 Nov 2008 22:20:46 +0000 http://www.smartcreditchoices.com/blog/?p=124#comment-145 I have tried to contact American Express several times and can't get through on the phone - 45 minutes or longer 3 different times during three different times during the day. I went from a 25,000 limit to 1200. There was no reason other than possibly the reason mentioned in the above article. I use my card for business purposes and now have to make payments weekly to keep it under limit. The other problem i have with this is it's effecting my credit score negatively which affects my ability to have other accounts and limits. There is a 30% hit to my score if I am over 1/2 of my existing credit limit on that card. I have no choice but to change all my direct billing and cancel the card because I can't seem to get through to anyone. BS! I have tried to contact American Express several times and can’t get through on the phone – 45 minutes or longer 3 different times during three different times during the day. I went from a 25,000 limit to 1200. There was no reason other than possibly the reason mentioned in the above article. I use my card for business purposes and now have to make payments weekly to keep it under limit. The other problem i have with this is it’s effecting my credit score negatively which affects my ability to have other accounts and limits. There is a 30% hit to my score if I am over 1/2 of my existing credit limit on that card. I have no choice but to change all my direct billing and cancel the card because I can’t seem to get through to anyone.

BS!

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