WTF? Credit Limit Reduction?

[dfagdfsh]

Today I got an email from AmEx saying that they're reducing the limit on a credit card I have. The card has a $0 balance and hasn't been used in about 11 months (I don't even carry it with me.. it's in a drawer, for emergencies).

What's the deal? I've never missed a payment on this card, or any card, or any bill for that matter, and last time I checked had no blemishes on my credit report.

Is it just AmEx being cornered about people with the ability to run up debt in a bad economy?

 

[lee_44106]

Originally Posted by Teger

Today I got an email from AmEx saying that they're reducing the limit on a credit card I have. The card has a $0 balance and hasn't been used in about 11 months (I don't even carry it with me.. it's in a drawer, for emergencies).

What's the deal? I've never missed a payment on this card, or any card, or any bill for that matter, and last time I checked had no blemishes on my credit report.

Is it just AmEx being cornered about people with the ability to run up debt in a bad economy?

There's your problem.

 

[Patrician]

Prolly some' like dat. Check the interwebz for info, amex.com?

 

[EL72]

Originally Posted by Teger

Today I got an email from AmEx saying that they're reducing the limit on a credit card I have. The card has a $0 balance and hasn't been used in about 11 months (I don't even carry it with me.. it's in a drawer, for emergencies).

What's the deal? I've never missed a payment on this card, or any card, or any bill for that matter, and last time I checked had no blemishes on my credit report.

Is it just AmEx being cornered about people with the ability to run up debt in a bad economy?

The bolded part is the problem. If you don't use the credit, financial institutions are more likely to take it away since they need to reduce their potential exposure and you account is inactive and not profitable for them.

 

[dfagdfsh]

Oh ok. Makes sense. It wasn't a huge reduction (just a couple of hundred dollars). Should I move my Netflix subscription to this card or something? Just so there's some small recurring charge that I pay off right away?

In the long run, does this damage my credit score?

 

[EL72]

Originally Posted by Teger

Oh ok. Makes sense. It wasn't a huge reduction (just a couple of hundred dollars). Should I move my Netflix subscription to this card or something? Just so there's some small recurring charge that I pay off right away?

In the long run, does this damage my credit score?

Won't damage your credit score and yes, use your cards, lines of credit... if you want to keep them.

 

[freefinancialadvice]

Originally Posted by Teger

In the long run, does this damage my credit score?


No, not unless your balance in now more than half your total credit.

 

[dcg]

Chase actually closed a card I had with them recently.

Fine with me, I hadn't planned to use any anymore after they decided to raise my apr from something around 6% to 28%. I never carry a balance on a credit card anyway, but it was the principle of the thing (no pun intended).

 

[dfagdfsh]

Originally Posted by dcg

Chase actually closed a card I had with them recently.

Fine with me, I hadn't planned to use any anymore after they decided to raise my apr from something around 6% to 28%. I never carry a balance on a credit card anyway, but it was the principle of the thing (no pun intended).

Yes, this is what bothered me too. It's like "hey even though you've never missed a payment or carried a balance for more than a few months, here's a big **** you". I guess from a business perspective it makes sense.

 

[ghulkhan]

you have a limit on your amex?

 

[thekunk07]

^everyone does. amex has been doing this for awhile based on your zip code and spending habits and foreclosure risk in that given zip code. has little to do with your individual habits.

 

[dfagdfsh]

Originally Posted by ghulkhan

you have a limit on your amex?

yes I don't have a 'real' amex, only blue. some of us pay our own way

 

[ghulkhan]

Originally Posted by thekunk07

^everyone does. amex has been doing this for awhile based on your zip code and spending habits and foreclosure risk in that given zip code. has little to do with your individual habits.

i was just kidding

 

[dfagdfsh]

dawg, its black card time. I roll up to the bar, my posse 10 deep, push my way to the front, and drop my black card and buy that place out. the bartender takes one look and I nod. sometimes those clowns at amex call me up and are like 'did you really just pay for 600 shots of vodka' and i'm like heh, thats just me warming up

 

[ghulkhan]

Originally Posted by Teger

dawg, its black card time. I roll up to the bar, my posse 10 deep, push my way to the front, and drop my black card and buy that place out. the bartender takes one look and I nod. sometimes those clowns at amex call me up and are like 'did you really just pay for 600 shots of vodka' and i'm like heh, thats just me warming up

contrary to the popular belief there is a "limit" on that card as well