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American Express lowered my credit limit? WTF.

M

manlymatt83

Lifer
I have two cards with american express. one with a $40,000 limit and one with a $5000 limit. The $40,000 limit one has $27,000 locked in at 3.9%. The $5000 limit card has $0 on it and I don't use it much.

Today, I logged in to find that my $5000 limit card has been reduced to a $500 limit, but the other card (the $40,000 card) is still normal and functional. I called and they couldn't tell me why: that "account services" had "lowered" my limit.

Checked my credit report. Nothing wrong with it.

Ideas?
 
Maybe they lower it if you don't use it.

Note: Your credit rating drops 3 points every time you check it.
 
Originally posted by: dawks
Maybe they lower it if you don't use it.

Note: Your credit rating drops 3 points every time you check it.
Click to expand...

untrue. your credit rating drops 3-7 points for every hard pull outside of a two week period. self inquiries are soft pulls and do not reflect on your report.
 
Originally posted by: mjuszczak
Originally posted by: dawks
Maybe they lower it if you don't use it.

Note: Your credit rating drops 3 points every time you check it.
Click to expand...

untrue. your credit rating drops 3-7 points for every hard pull outside of a two week period. self inquiries are soft pulls and do not reflect on your report.
Click to expand...

Why should your credit rating drop at all simply because it's being checked? I think that only actualy transactions should have an impact on your credit score, but that's just me.
 
Not to hijack your thread, but my B of A CC's limit was raised by $300 last month. They just trying to get me to spend more money?
 
Originally posted by: Matt2
Not to hijack your thread, but my B of A CC's limit was raised by $300 last month. They just trying to get me to spend more money?
Click to expand...

If it's the old MBNA card, those guys are FOREVER raising credit limits for no good reason.
 
Originally posted by: mjuszczak
Originally posted by: dawks
Maybe they lower it if you don't use it.

Note: Your credit rating drops 3 points every time you check it.
Click to expand...

untrue. your credit rating drops 3-7 points for every hard pull outside of a two week period. self inquiries are soft pulls and do not reflect on your report.
Click to expand...

check your credit every day for the next year and then tell me it doesn't affect your credit
 
Originally posted by: jagec
Originally posted by: Matt2
Not to hijack your thread, but my B of A CC's limit was raised by $300 last month. They just trying to get me to spend more money?
Click to expand...

If it's the old MBNA card, those guys are FOREVER raising credit limits for no good reason.
Click to expand...

Nah, not an MBNA card. Bank of America WorldPoints Visa.

OP-

Really weird that they could not even tell you why it happened. Mistake?
 
Originally posted by: alimoalem
Originally posted by: mjuszczak
Originally posted by: dawks
Maybe they lower it if you don't use it.

Note: Your credit rating drops 3 points every time you check it.
Click to expand...

untrue. your credit rating drops 3-7 points for every hard pull outside of a two week period. self inquiries are soft pulls and do not reflect on your report.
Click to expand...

check your credit every day for the next year and then tell me it doesn't affect your credit
Click to expand...

We know it doesnt affect it. So you try it and tell us the results.
 
Originally posted by: alimoalem
Originally posted by: mjuszczak
Originally posted by: dawks
Maybe they lower it if you don't use it.

Note: Your credit rating drops 3 points every time you check it.
Click to expand...

untrue. your credit rating drops 3-7 points for every hard pull outside of a two week period. self inquiries are soft pulls and do not reflect on your report.
Click to expand...

check your credit every day for the next year and then tell me it doesn't affect your credit
Click to expand...

I basically do. I get free daily monitoring. They tell me everytime anything is posted or there is any change.
 
Is there any other topic which continually attracts so many outright wrong replies? Checking your own credit does NOT affect your credit score, even if you do it every single day. Fact.

Back to the OP, AmEx is known for reducing credit limits or even worse, freezing accounts until documentation of income and/or income tax returns are supplied. Have you recently increased a balance on another card or cards, or opened new accounts somewhere else? That's something which is believed to trigger AmEx.

 
Originally posted by: mjuszczak
Originally posted by: dawks
Maybe they lower it if you don't use it.

Note: Your credit rating drops 3 points every time you check it.
Click to expand...

untrue. your credit rating drops 3-7 points for every hard pull outside of a two week period. self inquiries are soft pulls and do not reflect on your report.
Click to expand...

LOL it's like Shredinger's cat 😀
 
Amex has credit limits? I was never aware of that, I have been charging outrageous amount on my card from time to time they have never stopped me, I just got to pay up at the end of the month except when there was that time that I was outside of country and they told me that don't worry about it until I return to the states (which was about another month).

 
I see it as this...they decided you were only worth $40,000 in risk to them, not $45000. Apparently, these decisions are all made by BOB, over in India. He's got a great job...just sits around all day, stroking his burrow, and reading credit porfolios. 🙂
 
Read this: http://www.fatwallet.com/t/52/527615

Amex really likes to put accounts under financial review. Since it's only a few grand and they left your 40K account alone I wouldn't stress it, if you call and push the issue they're likely to review your other account as well. Unlike most other cc companies they do ask for W2's and such. You could move some credit from the 40K card to the other but it will affect your % utilization on that card and I wouldn't recommend it.
 
Originally posted by: alimoalem
Originally posted by: mjuszczak
Originally posted by: dawks
Maybe they lower it if you don't use it.

Note: Your credit rating drops 3 points every time you check it.
Click to expand...

untrue. your credit rating drops 3-7 points for every hard pull outside of a two week period. self inquiries are soft pulls and do not reflect on your report.
Click to expand...

check your credit every day for the next year and then tell me it doesn't affect your credit
Click to expand...

It actually helps to check it every day for the next year. Read up on "Bumpage".
 
Originally posted by: halik
you have 30K of CC debt and you're wondering why they lowered your limit?
Click to expand...

If he has a locked in rate at 3.9% he would be a fool not to take advantage of it. There are many many ways to get a higher rate of return on that money. As long as there are semi-liquid assets (money market, mutual fund, CD) somewhere to pay it off when the rate rises then there is no problem.
 
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