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AMEX reducing CL for 1/2 of cardholders Archived From: Finance

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   posted: Sep. 20, 2008 @ 10:27a

New York Times article


New York Times said: An economy propelled by easy credit for more than a decade is fraying as credit disappears. American Express, to take one striking example, is reducing the maximum credit limit for half of its tens of millions of cardholders.

Are many of you seeing reduced credit limits?


   posted: Sep. 20, 2008 @ 10:27a

(If AXP cut your lines, please also post an estimate of what your total utilization % is across all of your cards at all lenders, values over 25% may be spooking AXP).

Message edited by: markkundinger on 2008-11-06 09:45:07 CST
   posted: Sep. 20, 2008 @ 10:42a

nothing so far.

it might very well happen as I havent used more than 10% of their limit


   posted: Sep. 20, 2008 @ 10:50a

I never even knew what my limit was. It was simply listed as "no pre-set spending limit.". Now we all know that there is obviously a limit but i've never seen it published anywhere.


   posted: Sep. 20, 2008 @ 10:59a

Nothing slashed here.


   posted: Sep. 20, 2008 @ 11:34a

Actually, I recently went from $15500 to $25000 with my AMEX Blue - so nope.


   posted: Sep. 20, 2008 @ 11:45a

InfiniTrent said:Actually, I recently went from $15500 to $25000 with my AMEX Blue - so nope.

Maybe they gave you $25k so that they can slash you to $20k and add you to that "1/2 of cardholders"?


   posted: Sep. 20, 2008 @ 2:02p

Ecuadorgr said:InfiniTrent said:Actually, I recently went from $15500 to $25000 with my AMEX Blue - so nope.

Maybe they gave you $25k so that they can slash you to $20k and add you to that "1/2 of cardholders"?

Uh oh...they ARE tricky like that!


   posted: Sep. 20, 2008 @ 2:15p

Ruh roh !


   posted: Sep. 20, 2008 @ 2:48p

I call BS. That little tidbit isn't a quote... it's like the author made it up based on what is said later about less CLIs. Nothing's changed on my cards.


   posted: Sep. 20, 2008 @ 3:42p

The CL on both my AMEX cards went up by 20% in the last 6 months. So no.


   posted: Sep. 20, 2008 @ 4:18p

my blue credit went from 20k to 1500 but my plat stayed at 28k. the blue was barely used.


   posted: Sep. 20, 2008 @ 4:30p

3v1l said:my blue credit went from 20k to 1500 but my plat stayed at 28k. the blue was barely used.

Platinum AMEX cards do not have preset limits. It's unlikely that figure will move.


   posted: Sep. 20, 2008 @ 5:00p

I closed my accounts when they tried to FR me.. Now they want a notarized statement from my CPA before they will open a new account for me.


   posted: Sep. 20, 2008 @ 5:18p

Had one of my IN cards reduced to 500 after letting it sit for awhile after using for a BT....hardly even noticed until I tried to open a new card a month ago and declined because recently had a card reduced...


   posted: Sep. 20, 2008 @ 5:29p

No reductions on my $45K Starwood card. Makes me a little nervous though because that's one of my highest limit cards and I don't want it to get cut when I do my upcoming AOR.


   posted: Sep. 20, 2008 @ 5:31p

I think this is a new development from AMEX, starting this last week and probably not completely implemented yet.

On a macro level I fear this will become more and more likely from other CC issuers also, depending on how the Gov. bailout affects them.


   posted: Sep. 20, 2008 @ 5:37p

Doing a little more research

Washington Post article

Post article said:American Express spokeswoman Kim Forde said the company typically adjusts less than 20 percent of its customers' credit limits annually. Traditionally, 80 percent of those adjustments are to raise the limit, while the remainder are decreased. That ratio began changing in October and now sits at about 50-50.

So, this isn't exactly what was printed in the Times article, maybe they got it wrong. It does illustrate that AMEX is lowering credit limits much more frequently though.


   posted: Sep. 20, 2008 @ 8:17p

My AMEX was slashed from $10k to $500. i was shocked when I got the letter. Wall St is swimming this week...


   posted: Sep. 20, 2008 @ 8:24p

I just got my cards reinstated from $500 each to $24.9k and $10.3k last week after a 5 month stint. Hoping I won't get bumped right back down again!


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