AmEx Blue Cash Everyday Card

[drawpoker]

Around 2 years ago I dropped my AmEx Gold Card and switched to the Blue Cash Everyday Card. Primarily because they offered 18 mo. of zero APR for new accounts, also $150 bonus after 3 months of regular use.

Used that "free" money for the full 18 months then paid it off when the intro period ended. Went on to other cards, offers, etc.

In today's mail here comes a snippy letter saying that "because of minimal activity on the account in the last 12 months" they are lowering the credit limit to $7,500 They didn't say from what, and I can't recall what it was after all this time. Think $12K or $15K sticks in my mind, tho.

Obviously, they look down their noses at laggards like me Because they aren't raking in those annual fees anymore like with the Gold card.

I can't recall this ever happening before. My usual experience is cards threatening to cancel for inactivity; after using, they are all happy & smiles again.

My concern: Is this going to lower my FICO score? For many years now it bounces back and forth from 827 to 847. I most definitely do not want it to go below 800 - My credit "utilization" factor is well below 10%, more like 6% I think.

Should I call AmEx and ask them to "review" their decision as they say in their letter?

[essbeer]

What will your credit utilization be now that they've lowered your available credit? Even wild swings in utilization are normally less than 20 points for me.

[Trism]

This is the second or third report I've seen in the past week of Amex cutting limits on cards that don't see much usage.

I have five Amex revolvers (81k, 49.5k, 17.5k, 15k, 15k). Most don't see a lot of usage, but the limits are still intact.

With low/no utilization on this card an low utilization overall, your FICO scores won't notice.

[Turbo29]

Got the same letter two weeks ago. I was online to get my balance and I noticed my available credit was lower than what it had been; letter showed up 3 days later.

I may get rid of it. I got it when Costco dumped AMEX; AMEX offered the card as a replacement. What did they expect, once Costco was gone from the equation of course my AMEX spending went down.

As for calling them and asking them to review their decision, no way. If I call them It will be to cancel and tell them to go to ... .

[Broken Man 1999]

That activity seems a bit odd to me, especially considering your credit score.

I have no idea where their credit card limits come from, they don't seem to follow any account info/history.

I have never had a balance of even $2,000 on any AmEx card, and honestly I use it very seldom. In fact, so seldom I'm thinking of culling it from my credit card herd. Yet my limit is $25,100.

I would certainly call AmEx to see why they cut your limit. The loss of limit will affect your utilization rate, but it might not affect your credit score.

Broken Man 1999

[2pedals]

Mine dropped from 25k to 12.5k for the same reason given.

[Turbo29]

That activity seems a bit odd to me, especially considering your credit score.

I have no idea where their credit card limits come from, they don't seem to follow any account info/history.

I have never had a balance of even $2,000 on any AmEx card, and honestly I use it very seldom. In fact, so seldom I'm thinking of culling it from my credit card herd. Yet my limit is $25,100.

I would certainly call AmEx to see why they cut your limit. The loss of limit will affect your utilization rate, but it might not affect your credit score.

Broken Man 1999

I know you weren't responding to me but my score is between 840 and 850. They still cut me. I used the card weekly for groceries (the 3% cash back was better than any of my other cards for that category). Maybe they didn't like me paying my full balance every two weeks. Well, as I said, "They can go to ... ."

[drawpoker]

What will your credit utilization be now that they've lowered your available credit? Even wild swings in utilization are normally less than 20 points for me.

I think the 20-point swings are due to the "age" factor of total credit history. Altho I have 2 forty-plus years accounts (Sears and AmEx) every time I open a new credit card to take advantage of these zero APR offers it causes a ding. I just took out a new Fidelity Visa card 2 months ago for that zero intro period. (That one I can remember, $17K limit)

Seemed like last time I looked, it said average age of all accounts was like 14 or 16 years.

[MikeG62]

...Should I call AmEx and ask them to "review" their decision as they say in their letter?

I doubt they will be interested in changing their decision given this is a card you appear to not be using.

The drop in your credit limit does not seem like big dollars or a big deal to me and I would not expect it to have a material impact on your credit score. Given you typically run a very low utilization % (6%), how much could this reduction impact that % - maybe a few percentage points?

[harrad]

Same here. We had our credit limit reduced by 1,000$ after we converted ours from Blue Cash Preferred to Blue Cash Everyday. The fact that Chase freedom and Discover offer 5% cash back for one quarter every year makes Blue Cash Preferred less enticing.

[TravelGeek]

I am honestly surprised that this doesn’t happen more often. I have about 5X my total annual credit card spend as my combined credit limit, and I have several cards that see virtually no spend and have > $10k limits. I wonder why they don’t re-evaluate my credit situation more often - it seems the credit limit for most cards gets allocated at application time based on the then current credit report, but it rarely gets looked at again unless I myself take action (ask for more or ask for reallocation from one card to another issued by the same bank).

[vineviz]

Obviously, they look down their noses at laggards like me Because they aren't raking in those annual fees anymore like with the Gold card.

Actions like this are mostly a form of risk management: unused or rarely used cards with high limits represent a substantial threat of fraudulent use, which the card company is on the hook for.

Protests might be helpful, but using the card enough that you have a statement balance at least a couple times a year is probably going to be more helpful. Assuming you want to keep the card at all.

[Turbo29]

Obviously, they look down their noses at laggards like me Because they aren't raking in those annual fees anymore like with the Gold card.

Actions like this are mostly a form of risk management: unused or rarely used cards with high limits represent a substantial threat of fraudulent use, which the card company is on the hook for.

Protests might be helpful, but using the card enough that you have a statement balance at least a couple times a year is probably going to be more helpful. Assuming you want to keep the card at all.

I have a statement balance every month and they still cut mine so that won't to be the solution in this case.

[Cheyenne]

Some years ago Chase flat-out closed a credit card account that I hadn't used for some time, without even a prior notice. I have a few cards that I don't use much and I mark my calendar to buy gas or something about every 5 months on each.

[SlowMovingInvestor]

Some years ago Chase flat-out closed a credit card account that I hadn't used for some time, without even a prior notice. I have a few cards that I don't use much and I mark my calendar to buy gas or something about every 5 months on each.

I think just after the financial crisis, Chase closed some accounts, and reduced credit to others even for people with immaculate histories. Chase was one of the few banks that was almost unscathed by the crisis, but possibly outstanding credit lines (which is what credit cards are) impacted their ratios or ability to lend.

[vineviz]

Some years ago Chase flat-out closed a credit card account that I hadn't used for some time, without even a prior notice. I have a few cards that I don't use much and I mark my calendar to buy gas or something about every 5 months on each.

I think just after the financial crisis, Chase closed some accounts, and reduced credit to others even for people with immaculate histories. Chase was one of the few banks that was almost unscathed by the crisis, but possibly outstanding credit lines (which is what credit cards are) impacted their ratios or ability to lend.

Yep, or they need/want to used the credit exposure somewhere else in their business.

[drawpoker]

......using the card enough that you have a statement balance at least a couple times a year is probably going to be more helpful. Assuming you want to keep the card at all.

Well, I absolutely, positively need to keep this card. Apparently, the history is somehow tied to my old Gold card, as the Blue cash card is stamped "Member since 1977". The so-called experts on these things are constantly harping on the fact that your oldest cards are the most valuable (in terms of FICO scores)

Guess I will have to start using it, as, if AmEx is going to be this piss-y about it, the next shoe to might drop is they just cancel it altogether for inactivity. (BOA did exactly that on one of my cards with absolutely No Advance Notice.

While we're on the subject - I never recall AmEx doing what Citicard and Discover do. Specifically, when I log on to my account, a message pops up saying "Update your income information". Why? According to the b.s. line that follows, this is very "important" to do! Don't delay! See, should they receive a request for a credit limit increase, then they can act quickly on the request. How neat!

Horse puckey. If anyone should give them a number much lower than what was on the original application, gee, I wonder what would happen next.

[oldcomputerguy]

Capital One did the same to me. Didn’t make an earthshaking dent in my life.

[bling]

My concern: Is this going to lower my FICO score? For many years now it bounces back and forth from 827 to 847. I most definitely do not want it to go below 800 - My credit "utilization" factor is well below 10%, more like 6% I think.

you have nothing to worry about. anything over 740 will get you the best rates.

[drawpoker]

.... lower my FICO score? For many years now it bounces back and forth from 827 to 847. I most definitely do not want it to go below 800 -

you have nothing to worry about. anything over 740 will get you the best rates.

Yeah, but Not concerned with interest rates for future loans/borrowing. It's my H.O. & auto insurance premiums. My understanding of the company I am presently with is that customers with FICO scores at 800 or above get kid-gloves treatment in setting premiums.

[pdavi21]

It shouldn't lower your score unless it boosts your utilization rate significantly. Your score is too high to matter anyway.

I would be thankful. You should close those old accounts. It's easier to deal with fraud that never occurs.

Also, are you really going to stick with one homeowner's and auto insurance provider your whole life? If you are worried about a small rate increase, it would likely be more fruitful to change policies often, adjust coverage, etc than to worry about a small rate increase for credit under 800 that may not exist.

[TravelGeek]

Horse puckey. If anyone should give them a number much lower than what was on the original application, gee, I wonder what would happen next.

They would presumably re-assess your ability to qualify for the credit you originally qualified for and perhaps reduce your limit. Seems reasonable to me.

I generally ignore such popup questions as they don't seem to be mandatory. I have seen them from Amex and BofA. But if they were required, I would provide accurate information even if it meant a reduced credit limit. I'd rather not get all my Amex accounts closed due to a Financial Review revealing that I lied about my income. And yes, my income dropped significantly since I applied for my last Amex card due to reaching FIRE.

[bling]

.... lower my FICO score? For many years now it bounces back and forth from 827 to 847. I most definitely do not want it to go below 800 -

you have nothing to worry about. anything over 740 will get you the best rates.

Yeah, but Not concerned with interest rates for future loans/borrowing. It's my H.O. & auto insurance premiums. My understanding of the company I am presently with is that customers with FICO scores at 800 or above get kid-gloves treatment in setting premiums.

nothing that a little competition can't solve. you should be cross shopping every couple years anyway to ensure you're getting the best rates.

anywho, if you really are paranoid about your utilization value, then just go and get a new credit card. take a hit of couple points for the hard pull, collect the signup bonus, and be back to where you were (or better) within 2-3 months.

[Jags4186]

......using the card enough that you have a statement balance at least a couple times a year is probably going to be more helpful. Assuming you want to keep the card at all.

Well, I absolutely, positively need to keep this card. Apparently, the history is somehow tied to my old Gold card, as the Blue cash card is stamped "Member since 1977". The so-called experts on these things are constantly harping on the fact that your oldest cards are the most valuable (in terms of FICO scores)

Guess I will have to start using it, as, if AmEx is going to be this piss-y about it, the next shoe to might drop is they just cancel it altogether for inactivity. (BOA did exactly that on one of my cards with absolutely No Advance Notice.

While we're on the subject - I never recall AmEx doing what Citicard and Discover do. Specifically, when I log on to my account, a message pops up saying "Update your income information". Why? According to the b.s. line that follows, this is very "important" to do! Don't delay! See, should they receive a request for a credit limit increase, then they can act quickly on the request. How neat!

Horse puckey. If anyone should give them a number much lower than what was on the original application, gee, I wonder what would happen next.

The card is not tied to your gold card. You closed your gold card. You opened a BCE. “Member since 1977” is simply marketing on AMEX’s part. While in the past AMEX used to backdate cards, they stopped that practice in 2015. If this BCE was opened in 2015 or later, it is simply a card opened in 2015.

[MildlyEccentric]

I make regular and frequent use of my AmEx Blue card and every few months, AmEx mails me and asks if I would like to increase my credit limit on the card. I haven't bothered as I don't need the additional credit, and they want me to verify my current income in order to qualify. Evidently, usage of the card makes a difference.

[UpperNwGuy]

Credit: use it or lose it.

[spammagnet]

... My concern: Is this going to lower my FICO score? For many years now it bounces back and forth from 827 to 847. I most definitely do not want it to go below 800 - My credit "utilization" factor is well below 10%, more like 6% I think. ...

What difference would it make in your life if it did? I wouldn't waste time on AmEx. I doubt you'd have any problem opening a new account somewhere for bonus points with additional benefit of expanding your total available credit.

Edit: I read your response about insurance rates. Makes sense but I still think you can just move on to another card. Put a small recurring charge on the AmEx to maintain activity. Set that card to auto-pay so you don't have to pay attention other than glancing at the auto-pay reminder email when it comes in.