American Express lowered my credit limit

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mptfan
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American Express lowered my credit limit

Post by mptfan » Fri May 24, 2019 4:24 pm

I have an American Express Blue Cash card, the one with no annual fee, not the preferred card. I recently received a letter from American Express stating the following...

"We are writing today because over the past 12 months, the spend activity on your account listed above has been significantly lower than your credit limit. In order to align with your spending, we have lowered the credit limit on your account to $11500. The new cash advance limit is $2300."

Has anyone else gotten their credit card limit lowered due to lower spending activity? This has never happened to me before, I find it somewhat strange...the fact that I have used this card less over the last 12 months than before makes me a higher credit risk than if I had used it more? Seems odd to me. I used to use this card a lot more as my primary card before I switched to the Fidelity 2% cash back card, and it feels to me as if Amex is saying "You don't want to use us anymore, that's fine, we will just reduce your credit limit. That will teach you!"
Last edited by mptfan on Fri May 24, 2019 4:35 pm, edited 1 time in total.

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msi
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Re: American Express lowered my credit limit

Post by msi » Fri May 24, 2019 4:28 pm

During the financial crisis, Amex did lower my credit limit, then raised it back a few years later. I was also not using anywhere near what they gave me.

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whodidntante
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Re: American Express lowered my credit limit

Post by whodidntante » Fri May 24, 2019 4:31 pm

I have seen reports of that before. It's a risk management thing. If you don't use the card much it is not a problem for you either.

jebmke
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Re: American Express lowered my credit limit

Post by jebmke » Fri May 24, 2019 4:40 pm

whodidntante wrote:
Fri May 24, 2019 4:31 pm
I have seen reports of that before. It's a risk management thing. If you don't use the card much it is not a problem for you either.
that was my reaction. If I'm not using a card much, I don't care that much. If I expect to have a need -- for example if I were planning an expensive trip and wanted two cards with high limit as a backup -- I can always call them and get them to flip it back up.
Last edited by jebmke on Fri May 24, 2019 4:40 pm, edited 1 time in total.
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Topic Author
mptfan
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Re: American Express lowered my credit limit

Post by mptfan » Fri May 24, 2019 4:40 pm

whodidntante wrote:
Fri May 24, 2019 4:31 pm
I have seen reports of that before. It's a risk management thing.
How so? What risk are they managing? I have never been late on any payments, and my credit score is very high.

jebmke
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Re: American Express lowered my credit limit

Post by jebmke » Fri May 24, 2019 4:41 pm

mptfan wrote:
Fri May 24, 2019 4:40 pm
whodidntante wrote:
Fri May 24, 2019 4:31 pm
I have seen reports of that before. It's a risk management thing.
How so? What risk are they managing? I have never been late on any payments, and my credit score is very high.
The risk that they get stuck with a fraudulent charge exceeding the new lower limit.
When you discover that you are riding a dead horse, the best strategy is to dismount.

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mptfan
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Re: American Express lowered my credit limit

Post by mptfan » Fri May 24, 2019 4:42 pm

jebmke wrote:
Fri May 24, 2019 4:41 pm
mptfan wrote:
Fri May 24, 2019 4:40 pm
whodidntante wrote:
Fri May 24, 2019 4:31 pm
I have seen reports of that before. It's a risk management thing.
How so? What risk are they managing? I have never been late on any payments, and my credit score is very high.
The risk that they get stuck with a fraudulent charge exceeding the new lower limit.
That risk existed for many years before they lowered the limit, I just don't see how that risk increased.

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Kosmo
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Re: American Express lowered my credit limit

Post by Kosmo » Fri May 24, 2019 4:45 pm

I got the same letter. On that card I've been charging a few hundred dollars a month on a limit of like $22k. So I see their point. Reducing the limit doesn't really have any significant impact on me.

jebmke
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Re: American Express lowered my credit limit

Post by jebmke » Fri May 24, 2019 4:46 pm

mptfan wrote:
Fri May 24, 2019 4:42 pm
jebmke wrote:
Fri May 24, 2019 4:41 pm
mptfan wrote:
Fri May 24, 2019 4:40 pm
whodidntante wrote:
Fri May 24, 2019 4:31 pm
I have seen reports of that before. It's a risk management thing.
How so? What risk are they managing? I have never been late on any payments, and my credit score is very high.
The risk that they get stuck with a fraudulent charge exceeding the new lower limit.
That risk existed for many years before they lowered the limit, I just don't see how that risk increased.
Could be that statistically, things are getting worse and you drew a short straw. In any case, it seems you are worrying about something that doesn't affect you.
When you discover that you are riding a dead horse, the best strategy is to dismount.

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mptfan
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Re: American Express lowered my credit limit

Post by mptfan » Fri May 24, 2019 4:46 pm

jebmke wrote:
Fri May 24, 2019 4:46 pm
Could be that statistically, things are getting worse and you drew a short straw. In any case, it seems you are worrying about something that doesn't affect you.
I'm not worrying about it.

leemonster
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Re: American Express lowered my credit limit

Post by leemonster » Fri May 24, 2019 4:53 pm

I received the same letter. Only charging a few hundred each month; I guess they want us to use it more often. I always pay full balance which is probably another strike against me.

dknightd
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Re: American Express lowered my credit limit

Post by dknightd » Fri May 24, 2019 5:00 pm

I don't have an American express card. But I have had cards cancelled due to lack of use. I have also had limits reduced. It does not bother me, or my credit rating.

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sunny_socal
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Re: American Express lowered my credit limit

Post by sunny_socal » Fri May 24, 2019 5:07 pm

Mine lowered as well. I don't use the card, I only got it because of some intro bonus. Don't care for Amex but keep it since there's no fee and having more credit improves my FICO score :beer

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Re: American Express lowered my credit limit

Post by oldcomputerguy » Fri May 24, 2019 5:11 pm

mptfan wrote:
Fri May 24, 2019 4:24 pm
Has anyone else gotten their credit card limit lowered due to lower spending activity?
In March of last year, Capital One lowered my credit limit on my CapOne Visa card from $30,000 to $10,000, based allegedly on the fact that I don't use that card that much except for international travel.
"I’ve come around to this: If you’re dumb, surround yourself with smart people; and if you’re smart, surround yourself with smart people who disagree with you." (Aaron Sorkin)

av8r316
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Re: American Express lowered my credit limit

Post by av8r316 » Fri May 24, 2019 5:29 pm

I imagine AMEX is required to take into account all outstanding credit lines when calculating various financial ratios. Stakeholders in AMEX should be encouraged to see them working to allocate capital efficiently.

lakpr
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Re: American Express lowered my credit limit

Post by lakpr » Fri May 24, 2019 5:52 pm

I received a similar letter last week. In my case, actually they closed the account entirely.

mhalley
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Re: American Express lowered my credit limit

Post by mhalley » Fri May 24, 2019 5:54 pm

Got the letter also. I charge my auto insurance on it monthly but otherwise don't use it.

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whodidntante
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Re: American Express lowered my credit limit

Post by whodidntante » Fri May 24, 2019 6:03 pm

jebmke wrote:
Fri May 24, 2019 4:41 pm
mptfan wrote:
Fri May 24, 2019 4:40 pm
whodidntante wrote:
Fri May 24, 2019 4:31 pm
I have seen reports of that before. It's a risk management thing.
How so? What risk are they managing? I have never been late on any payments, and my credit score is very high.
The risk that they get stuck with a fraudulent charge exceeding the new lower limit.
There is also the so-called bust out phenomenon. Either due to malice or circumstance, someone acquires massive amounts of available credit over months/years of good citizen behavior. Then they get sick/get divorced/get a drug habit/get addicted to gambling, go to an Ivy League school, or just plain old charge a bunch of stuff and take cash advances with no intention to pay (malice). They max every tradeline in three months, and file for bankruptcy or flee the country. I have joked that I can probably retire by maxing my tradelines and moving to Thailand. Joking. Really. :beer :happy

student
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Re: American Express lowered my credit limit

Post by student » Fri May 24, 2019 6:24 pm

I have received such a letter from another bank last year.

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tennisplyr
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Re: American Express lowered my credit limit

Post by tennisplyr » Fri May 24, 2019 6:40 pm

Amex is lending you money, multiply that times the millions of cardholders out there and that's a lot of money lending. If you not using it, they'd rather give that line to someone who is using it. My guess is that you pay your bill in full. You're probably not as profitable to them as others....that's business.
Those who move forward with a happy spirit will find that things always work out.

Iridium
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Re: American Express lowered my credit limit

Post by Iridium » Fri May 24, 2019 6:43 pm

whodidntante wrote:
Fri May 24, 2019 6:03 pm
There is also the so-called bust out phenomenon. Either due to malice or circumstance, someone acquires massive amounts of available credit over months/years of good citizen behavior. Then they get sick/get divorced/get a drug habit/get addicted to gambling, go to an Ivy League school, or just plain old charge a bunch of stuff and take cash advances with no intention to pay (malice). They max every tradeline in three months, and file for bankruptcy or flee the country. I have joked that I can probably retire by maxing my tradelines and moving to Thailand. Joking. Really. :beer :happy
OP, this is the answer, although I would deemphasize the malice part. Folks lose their jobs all the time, and many are without an emergency fund. They end up having to put their entire life on the credit card, and even if they get a job within a few months they are still in trouble because folks who live paycheck to paycheck can't necessarily handle payments on an extra $10K of credit cards debt while paying all their other bills and nobody with sense pays their credit card bills before any of their other bills, because it is not as if the CC company can evict you, repossess your car, or turn off your electricity/water/Internet. So default is still just a matter of time.

I used to work for a CC company and this is so much on their mind that it was incorporated into one of their interview questions. NOBODY wants to be the 'lender of last resort' because while there is good money to be made loaning folks a few hundred bucks to cover an emergency (i.e. the Fed's study about how few adults can afford a sudden $400 expense), if someone suddenly borrows far more money then they ever have in the past, chances are pretty good that whatever emergency precipitated that borrowing also impacts their ability to pay back the debt.
mptfan wrote:
Fri May 24, 2019 4:24 pm
"You don't want to use us anymore, that's fine, we will just reduce your credit limit. That will teach you!"
Admittedly I was on the auto side but, throughout my internship there, I never met anyone with any ill will towards those who do not use their credit card or any wish to 'teach them a lesson'. Heck, I and most of my colleagues didn't even carry our company's credit card. I can pretty much assure you that it isn't personal. Just the models saying that the profit to be had by offering you that credit limit (because you might suddenly decide to stick a big purchase on there but cannot) is less than the loss from the chance that you run into trouble and turn to the card in desperation. Remember that you spending a buck on the CC likely earns the bank around a penny after dealing with fraud and handing out rewards points (AMEX might do sightly better thanks to their higher interchange fees). Meanwhile, uncollectible debt gets sold off for pennies on the dollar.

baritone
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Re: American Express lowered my credit limit

Post by baritone » Fri May 24, 2019 6:53 pm

This happened with SEVERAL of my cards after the 2008-2009 unpleasantness. They lowered my credit limit to roughly what I had been charging in the past. I found it insulting.

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heartwood
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Re: American Express lowered my credit limit

Post by heartwood » Fri May 24, 2019 6:56 pm

got the same letter this week. Any impact on credit score?

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whodidntante
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Re: American Express lowered my credit limit

Post by whodidntante » Fri May 24, 2019 7:06 pm

heartwood wrote:
Fri May 24, 2019 6:56 pm
got the same letter this week. Any impact on credit score?
Available credit doesn't have an impact. Credit utilization does. You'll start to notice a drop at about 25% utilization in my experience. If your credit history is otherwise solid, you will still qualify for the best rates so it's not worth too much thought.

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Re: American Express lowered my credit limit

Post by jeff1949 » Fri May 24, 2019 7:19 pm

lakpr wrote:
Fri May 24, 2019 5:52 pm
I received a similar letter last week. In my case, actually they closed the account entirely.
Yep, that is what happened to us too.

smectym
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Re: American Express lowered my credit limit

Post by smectym » Fri May 24, 2019 7:28 pm

Banks are also constantly managing regulatory issues re their total credit exposure. American Express does seem to have an itchier trigger finger than other banks. I've been on the receiving end of those letters, during the crisis and otherwise. If your credit record is good and they nevertheless cut your line, it may be annoying, but it's usually "nothing personal" from the bank's point of view

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prudent
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Re: American Express lowered my credit limit

Post by prudent » Fri May 24, 2019 7:35 pm

whodidntante wrote:
Fri May 24, 2019 7:06 pm
heartwood wrote:
Fri May 24, 2019 6:56 pm
got the same letter this week. Any impact on credit score?
Available credit doesn't have an impact. Credit utilization does. You'll start to notice a drop at about 25% utilization in my experience. If your credit history is otherwise solid, you will still qualify for the best rates so it's not worth too much thought.
I agree that for most people a credit line decrease on one card wouldn't have a material impact, but available credit is a factor for determining credit utilization.

skylar
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Re: American Express lowered my credit limit

Post by skylar » Fri May 24, 2019 7:36 pm

I had my limit cut as well ($15k to $8.5k) due to low spending. I never charged more than a few hundred dollars per month (almost entirely in the 3% grocery cashback category) and paid the balance off every month, so I guess in that respect, I'm one of their worst customers. :)

TropikThunder
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Re: American Express lowered my credit limit

Post by TropikThunder » Fri May 24, 2019 7:55 pm

Maybe it's for the bank to mitigate the damage from stuff like this:
For what it is worth, my home was burglarized a few years back. The burglers knew exactly where to go to take important financial instruments - such as a stack of 30 credit cards that I had. I like keeping all of the old cards and had 10 years worth of expired cards in my possession. They also stole my amusement park season pass, my bike AND the receipt and manual to the bike (presumeably to return it to the store where it was purchased), and other sensitive financial documents.
If you're not using the card "out in the real world", that could imply that you don't keep it with you and it's at higher risk for loss or theft stashed in a drawer at home rather than in your purse or wallet.

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whodidntante
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Re: American Express lowered my credit limit

Post by whodidntante » Fri May 24, 2019 8:00 pm

prudent wrote:
Fri May 24, 2019 7:35 pm
whodidntante wrote:
Fri May 24, 2019 7:06 pm
heartwood wrote:
Fri May 24, 2019 6:56 pm
got the same letter this week. Any impact on credit score?
Available credit doesn't have an impact. Credit utilization does. You'll start to notice a drop at about 25% utilization in my experience. If your credit history is otherwise solid, you will still qualify for the best rates so it's not worth too much thought.
I agree that for most people a credit line decrease on one card wouldn't have a material impact, but available credit is a factor for determining credit utilization.
You're right. But there is also a numerator. :happy

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Re: American Express lowered my credit limit

Post by ChicagoBear7 » Fri May 24, 2019 9:37 pm

mptfan wrote:
Fri May 24, 2019 4:42 pm
jebmke wrote:
Fri May 24, 2019 4:41 pm
mptfan wrote:
Fri May 24, 2019 4:40 pm
whodidntante wrote:
Fri May 24, 2019 4:31 pm
I have seen reports of that before. It's a risk management thing.
How so? What risk are they managing? I have never been late on any payments, and my credit score is very high.
The risk that they get stuck with a fraudulent charge exceeding the new lower limit.
That risk existed for many years before they lowered the limit, I just don't see how that risk increased.
It's not just credit risk, it is also capital charges under the Basel capital accords. There is a capital allocation for unused lines of credit - since there is a commitment to make loans in the future. If they reduce a bunch of dormant credit card lines, they can reduce the amount of capital needed.

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MP123
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Re: American Express lowered my credit limit

Post by MP123 » Fri May 24, 2019 9:55 pm

ChicagoBear7 wrote:
Fri May 24, 2019 9:37 pm
mptfan wrote:
Fri May 24, 2019 4:42 pm
jebmke wrote:
Fri May 24, 2019 4:41 pm
mptfan wrote:
Fri May 24, 2019 4:40 pm
whodidntante wrote:
Fri May 24, 2019 4:31 pm
I have seen reports of that before. It's a risk management thing.
How so? What risk are they managing? I have never been late on any payments, and my credit score is very high.
The risk that they get stuck with a fraudulent charge exceeding the new lower limit.
That risk existed for many years before they lowered the limit, I just don't see how that risk increased.
It's not just credit risk, it is also capital charges under the Basel capital accords. There is a capital allocation for unused lines of credit - since there is a commitment to make loans in the future. If they reduce a bunch of dormant credit card lines, they can reduce the amount of capital needed.
There was a lot of unused credit line trimming right after Dodd - Frank was passed, I think it's required now.

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Re: American Express lowered my credit limit

Post by nisiprius » Fri May 24, 2019 11:58 pm

One conclusion that should be obvious, is that nobody should ever think "I don't need an emergency fund because if anything happens I can always just put it on my credit card. I'm way below my credit limit."
Annual income twenty pounds, annual expenditure nineteen nineteen and six, result happiness; Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery.

aerofreaky11
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Re: American Express lowered my credit limit

Post by aerofreaky11 » Sat May 25, 2019 7:52 am

Same deal here. Last week. 29k to 11k.

Grasshopper
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Re: American Express lowered my credit limit

Post by Grasshopper » Sat May 25, 2019 7:53 am

Ms G had her AmEx card limit chopped in half 30+ year cardholder. Chase and Discover have had a lot of 5% grocery quarters and that is about all we used it for.

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vineviz
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Re: American Express lowered my credit limit

Post by vineviz » Sat May 25, 2019 8:02 am

nisiprius wrote:
Fri May 24, 2019 11:58 pm
One conclusion that should be obvious, is that nobody should ever think "I don't need an emergency fund because if anything happens I can always just put it on my credit card. I'm way below my credit limit."
+1
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arf30
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Re: American Express lowered my credit limit

Post by arf30 » Sat May 25, 2019 8:02 am

AMEX and other banks are reducing their exposure to credit markets across the board, it's not personal and lots of people are getting these. Capital One reduced the limit recently on one of my seldom used cards.

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BoglePaul
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Re: American Express lowered my credit limit

Post by BoglePaul » Sat May 25, 2019 8:04 am

This happened in mass during the financial recession. Maybe a sign of things to come?

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changingtimes
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Re: American Express lowered my credit limit

Post by changingtimes » Sat May 25, 2019 8:05 am

Same letter here. But I was only ever using it for grocery shopping, since I have the Citi Double Cash (2% back on everything) and the Citi Thank You Premier (3x points for travel and entertainment). Then a Whole Foods opened up two blocks from me so I started using the Chase Prime Rewards when shopping there (5% cash back on Whole Foods and Amazon purchases). Then I got a promo from Citi on one of my other Thank You cards for 10x points up to a certain amount, so I started using that at other grocery stores.

So, yeah, I don't blame them.

xerxes101
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Re: American Express lowered my credit limit

Post by xerxes101 » Sat May 25, 2019 8:46 am

I got the same letter and cancelled the card. I figured I could do better than their 3% on groceries anyway by using combination of Discover and Chase Freedom, and other credit cards I have. It did leave a bad taste in my mouth and that's why I decided to cancel, otherwise I usually do not cancel.

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Re: American Express lowered my credit limit

Post by cherijoh » Sat May 25, 2019 9:08 am

mptfan wrote:
Fri May 24, 2019 4:24 pm
I have an American Express Blue Cash card, the one with no annual fee, not the preferred card. I recently received a letter from American Express stating the following...

"We are writing today because over the past 12 months, the spend activity on your account listed above has been significantly lower than your credit limit. In order to align with your spending, we have lowered the credit limit on your account to $11500. The new cash advance limit is $2300."

Has anyone else gotten their credit card limit lowered due to lower spending activity? This has never happened to me before, I find it somewhat strange...the fact that I have used this card less over the last 12 months than before makes me a higher credit risk than if I had used it more? Seems odd to me. I used to use this card a lot more as my primary card before I switched to the Fidelity 2% cash back card, and it feels to me as if Amex is saying "You don't want to use us anymore, that's fine, we will just reduce your credit limit. That will teach you!"
Don't take it personally. I'm not sure how it works with AmEx, but for bank-issued credit cards, the portfolio risk is assessed based on maximum credit limits across all customers. This in turn impacts the amount of cash on hand they need to keep because of government regulations. So if they want to reduce the total risk exposure it makes sense to cut credit limits for people who are not utilizing the credit limit they already have. Or to reassign the credit to someone else to generate more revenue.

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Re: American Express lowered my credit limit

Post by cherijoh » Sat May 25, 2019 9:28 am

mptfan wrote:
Fri May 24, 2019 4:42 pm
jebmke wrote:
Fri May 24, 2019 4:41 pm
mptfan wrote:
Fri May 24, 2019 4:40 pm
whodidntante wrote:
Fri May 24, 2019 4:31 pm
I have seen reports of that before. It's a risk management thing.
How so? What risk are they managing? I have never been late on any payments, and my credit score is very high.
The risk that they get stuck with a fraudulent charge exceeding the new lower limit.
That risk existed for many years before they lowered the limit, I just don't see how that risk increased.
No it's just that AI has gotten much more sophisticated and now the lenders can make these decisions automatically and reliably. I would expect to see more of this in the future. All these rewards cards have significantly narrowed the profit margins on credit cards, so the credit card companies are looking for ways to maximize revenue. Having cardholders with 10x the credit limt tat they have used in the past 12 or 24 months is a wasted extension of credit from their viewpoint.

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Re: American Express lowered my credit limit

Post by cherijoh » Sat May 25, 2019 9:32 am

oldcomputerguy wrote:
Fri May 24, 2019 5:11 pm
mptfan wrote:
Fri May 24, 2019 4:24 pm
Has anyone else gotten their credit card limit lowered due to lower spending activity?
In March of last year, Capital One lowered my credit limit on my CapOne Visa card from $30,000 to $10,000, based allegedly on the fact that I don't use that card that much except for international travel.
Allegedly? Was that the pattern or not?

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Re: American Express lowered my credit limit

Post by whodidntante » Sat May 25, 2019 9:40 am

nisiprius wrote:
Fri May 24, 2019 11:58 pm
One conclusion that should be obvious, is that nobody should ever think "I don't need an emergency fund because if anything happens I can always just put it on my credit card. I'm way below my credit limit."
Credit karma tells me I have $270,100 available in revolving credit lines. 64k of that is at 0%, and 55k is at WSJ prime. I have a similar amount available via margin. So far, none have been reduced, including in 2008. Why do I need to keep a big pile of cash again? OK, I'm being facetious. And it's not my only plan for the unexpected. But sometimes credit is a viable option and I don't think it makes sense to pretend the option doesn't exist. That said, if some rich person wants cash anyway, and they feel better calling it an emergency fund, no problem. :beer

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Doom&Gloom
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Re: American Express lowered my credit limit

Post by Doom&Gloom » Sat May 25, 2019 9:59 am

Interesting that so many have received letters recently. Certainly appears to be a system-wide change in policy/practice.

We put a couple of thousand on our Blue Cash Preferred every month, but I guess I'll be getting a similar letter soon. AMEX has increased my limits quite a few times during the past several years without my requesting it, so that would seem fair. No big deal. Life goes on.

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Re: American Express lowered my credit limit

Post by Grogs » Sat May 25, 2019 10:02 am

The problem with Amex is that they're a pain in the rear to raise your credit limit with if you do need more. A couple of years ago, I needed to put a $10k business expense on a card, and thought i might use my Delta Amex Gold card. I called them about raising the limit (I think it was $6500) and they mailed me a form asking for all sorts of personal information and authorizing a hard pull on my credit. I decided to pitch the form and use another card. With Chase, they simply asked my annual income and then approved a limit increase over the phone.

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Re: American Express lowered my credit limit

Post by oldcomputerguy » Sat May 25, 2019 10:03 am

cherijoh wrote:
Sat May 25, 2019 9:32 am
oldcomputerguy wrote:
Fri May 24, 2019 5:11 pm
mptfan wrote:
Fri May 24, 2019 4:24 pm
Has anyone else gotten their credit card limit lowered due to lower spending activity?
In March of last year, Capital One lowered my credit limit on my CapOne Visa card from $30,000 to $10,000, based allegedly on the fact that I don't use that card that much except for international travel.
Allegedly? Was that the pattern or not?
Yes, that was the pattern. I used "allegedly" to refer to their reasoning, not to my usage pattern.
"I’ve come around to this: If you’re dumb, surround yourself with smart people; and if you’re smart, surround yourself with smart people who disagree with you." (Aaron Sorkin)

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whodidntante
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Re: American Express lowered my credit limit

Post by whodidntante » Sat May 25, 2019 11:45 am

Grogs wrote:
Sat May 25, 2019 10:02 am
The problem with Amex is that they're a pain in the rear to raise your credit limit with if you do need more. A couple of years ago, I needed to put a $10k business expense on a card, and thought i might use my Delta Amex Gold card. I called them about raising the limit (I think it was $6500) and they mailed me a form asking for all sorts of personal information and authorizing a hard pull on my credit. I decided to pitch the form and use another card. With Chase, they simply asked my annual income and then approved a limit increase over the phone.
Now an AmEx CL increase can be requested online and does not trigger a hard pull. They also allow you to move available credit among cards online. You can also generally spend well above your credit limit without a fee, they just tack on the overrage to your minimum payment. They have a tool now to check to see if an over limit transaction will be approved before you do it.

cacophony
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Re: American Express lowered my credit limit

Post by cacophony » Sat May 25, 2019 12:31 pm

I got the same letter as the OP for the same card. I ended up calling Amex and they re-instated the original limit.

tj
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Joined: Thu Dec 24, 2009 12:10 am

Re: American Express lowered my credit limit

Post by tj » Sat May 25, 2019 3:58 pm

Same letter, same card. Mine was reduced to $7,500. I probably charge $100/month on it (I just use it for groceries for the 3% cashback so that I can get enough reward dollars to redeem $25, then it will go back in the sock drawer. I don't remember the original limit. don't care, I didn't bother calling to have it reinstated.

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