Upset with Amex and warning

[carmie3377]

not to sound insensitive here but seeing how upset you guys are they lowered your limits you are probably very reliant on your ccs or having severe cash flow problems. cc companies will not close your accounts or lower your limits unless you miss payments or set up some serious red flags like applying for too much credit in a short amount of time and you have high balances.

No, I'm not reliant on my cards! We pay them off each and every month. I use them for rewards and for the convenience of paying one or two bills a month vs having to enter 25 or more entries into my register each month.

And yes, they will lower your limit if you don't miss a payment or don't set up a bunch of accounts BECAUSE IT HAPPENED TO ME! Unless you see my credit report, don't be making assumptions about my credit history! I pulled my bureau to make sure that nothing had happened (such as fraud) and guess what? Zero bad accounts, zero late pays, zero overlimits. Not a negative thing on my report.

 

[Lucille1963]

Just checking in as another person with a good credit score (780 last time I checked) zero late payments and zero missed payments that has had their limits slashed. They were cards I got years ago and locked in at super low rates.

 

[razor7874]

well after reading your replies im guessing something else might be happening becaause im from the nj area and no one that i know who pay like me are having their limits dropped though ive heard they are raising rates. most people are telling their card companies they will close their accounts if they are not lowered and the cc companies are lowering them. mine for example from chase is 10.75%. maybe its a geographical thing? maybe it a mortgage thing? ive heard that cc companies dont like mortgage and car payments because they are fixed payments. I consider myself blessed that my parents bought my condo outright for me and dont have to worry about mortgage payments and i lease a bmw z4 that i completely stole at 265 a month. If this is not the case im out of ideas why they would lower your limits. Lol ive read of what people do to get back at their cc companies and thought it was hilarious. well they keep a balance of .50 and only use .50-1.00 a month between the servicing your account printing out a bill and sending you a statement they would lose approx 5-20 dollars a month on you. lol i say we spread the word and get as many people to do this as possible.

 

[JoanneNC]

Maybe I am equally isolated but I also have been fortunate to not see any decreases in limits. I also don't get why large limits bother some people that they threaten to close their accounts if not lowered. If you only keep it for emergency - why would it matter if that limit was $3500 or $35000 IF you aren't using it. (assuming/referring to responsible breathing borrowers in my statement only)

We have 2 AmEx cards - each with 22k limits, one Disney Visa with $42k limit (talk about some DVC points I could buy), a USAA card with $32,500 limit, and our Citi card with 24k. So we have $142k of unsecured credit available to us. How is that any different than people that have HELOC's available to them? Yes I understand how borrowing against a HELOC is better than credit cards, but both could be temptation to the irresponsible.

We use our AmEx Blue Cash for everything except Disney- I love getting between 1.5-5% cash back every year and the interest rate could be 35% for all I care since I never pay any.
I use my AmEx for between 3-5k a month for monthly expenses so obviously I would be OK if I had some limits reduced and I doubt my 800+ credit score will take a hit as I don't carry balances...

I think those with good credit is taking it personally and its not personal its business. If your not using it, why care if its there. Emergency savings is what I use for emergency- not a CC limit or Heloc that may not be. The banks need to lower their potential liability and lowering credit limits helps reduce their required capital limits placed on them from Uncle Sam. Yes the banks made mistakes and are now in bed with Uncle Sam but they want out of TARP and that means proving they have enough capital and lowering their liabilities is one way to reduce the amount of capital needed.

 

[Tissa]

They canceled mine even though I paid in full every month. That is ok though, I do not need credit cards. I have a rewards program with my bank visa check card so I now use it to pay for everything. If I do not have the cash then I do not buy it.. I'm not playing the credit card games any longer.

For those that say you are not dependent on your cards then why be upset? Cancel the cards and do not give one more dime to them.

 

[Bill and Jen]

For those of you who think credit cards are only for emergencies and or for purchasing items you can afford, therefore, thinking that decreasing limits or closing accounts is no big deal are forgetting one thing credit cards are used for frequently.

I use my CC for company travel. I travel to Asia about once a quater for work for anywhere from 3 days to three weeks.

All you smart people who dont need credit cards please tell me how I would buy my airplane tickets ~ 2k right there, Book and pay for my Hotel up to 4k and entertain customers 500 to 1k per event (could be 3 or more sepreate events in a trip). My company doesnt pre-pay it reimburses. So I need to cover the osts up front. Does that mean I should have 10k in the bank so i can use a debit card? I dont think so.


So having a 10k limit on my CC is just about right. I have not had it lowered but if they do I would be in big trouble.

Please get off your high horses and stuff it.

Thank you

 

[JoanneNC]

For those of you who think credit cards are only for emergencies and or for purchasing items you can afford, therefore, thinking that decreasing limits or closing accounts is no big deal are forgetting one thing credit cards are used for frequently.

I use my CC for company travel. I travel to Asia about once a quater for work for anywhere from 3 days to three weeks.

All you smart people who dont need credit cards please tell me how I would buy my airplane tickets ~ 2k right there, Book and pay for my Hotel up to 4k and entertain customers 500 to 1k per event (could be 3 or more sepreate events in a trip). My company doesnt pre-pay it reimburses. So I need to cover the osts up front. Does that mean I should have 10k in the bank so i can use a debit card? I dont think so.


So having a 10k limit on my CC is just about right. I have not had it lowered but if they do I would be in big trouble.

Please get off your high horses and stuff it.

Thank you

While I am sure you enjoy the perks you are getting from expenses that are being reimbursed, does your company offer you a corporate card? Just curious

 

[ExPirateShopGirl]

While I am sure you enjoy the perks you are getting from expenses that are being reimbursed, does your company offer you a corporate card? Just curious

Many companies stopped offering corporate cards because it was harder to recoup costs found later to be ineligible for reimbursement from employees who used poor judgment when using the cards.

By forcing employees to use their own money (credit) and request reimbursement afterward it cuts down on those 'massage' and 'escort' charges that probably slipped through before...

 

[Bill and Jen]

While I am sure you enjoy the perks you are getting from expenses that are being reimbursed, does your company offer you a corporate card? Just curious

Nope, in fact part of conditions of employment for employees whos jobs consist of travel in my company is to be able to obtain a CC.

 

[Momto3Girls&Max]

Nope, in fact part of conditions of employment for employees whos jobs consist of travel in my company is to be able to obtain a CC.

I wonder if this change in the credit industry will result in a change in the way employers handle company related charges/expenses. I sure hope so because having that amount of $$ on hand for work related expenses would be a hardship for most employees.

 

[eliza61]

lol read all the posts in here and theres only a few people i agree with in this room. the people that say that credit cards are for emergencies and not a pass to buy everything you want when you cant afford it. the other people stating that they had their cc limits lowered and closed for no reason are kidding themselves. lol i have an amex and chase cards with about 20k limit and the amex with no preset limit and have not had them lower my limit they tried to raise my interest rates but when i told them i was going to close they lowered it right away! not to sound insensitive here but seeing how upset you guys are they lowered your limits you are probably very reliant on your ccs or having severe cash flow problems. cc companies will not close your accounts or lower your limits unless you miss payments or set up some serious red flags like applying for too much credit in a short amount of time and you have high balances. you can have the highest credit scores ie 780 but ive seen people with 800 scores that owe 30k and are almost maxed out on all their ccs. that doesnt make them a good credit risk does it? would you lend someone money if they had 30k in debt that they carried for 2 yrs? I wouldnt. Heres what i think banks look at, they dont care that you make your payments on time. I think they look at are you spending more than you are sending? if you use your cc for only groceries and spend 400 a month but only that people get send them 80 dollars for 6 months straight you would quickly acrue a 1920 balance. now i understand balances because they cant afford to pay their balances in full but seriously if you are doing it every month and not putting your credit card away you are setting yourself up fo a big fall. me for example i bought some living room furniture last yr for my house and spent 6k that i didnt have ive constantly paid 500 a month for 6mths and have my balance down to 2k and havent used it at all. now im not saying im rich because i am certainly not im a 3rd year resident and make less than most people in here but if i cant afford it i just dont buy lol with the exception of my furniture, but im committed to paying it off before i use my cc. I want people to know that im not on the banks side either i hate them for what they did to this country but seriously ive learned putting myself in someone elses shoes helps me see their pt of view. they gave money to people that they shouldnt have and now they have to fix the problem because the bankruptcy courts are erasing most peoples debts. I say if you hate the banks why are you making them rich? Leave the credit cards at home.

So where did you get all this expert information on how people spend on the credit cards. I mean basically you are calling them liars so I would love to hear how you came to this conclusion except for the fact that it never happen to you.
That's like me saying all the people hurt and killed in Hurricane katrina didn't really have it happen because I've never personally seen a hurricane.

What does being reliant on your credit cards have to do with it. Any one who has a small business is reliant on their line of credit. Does that mean they should be taken advantage of. I guess in your world it does.

Bottom line: If you have been playing by the rules (making your payments on time and meeting the minum.) you deserve to have the terms you agreed to adhered to. I'm sorry that the idiots at the bank loosen their regulations to be greedy and now are getting their butts kick but heck if I'm going to be the scape goat.

Please keep your incorrect assumptions to yourself they are insulting.

 

[brettb]

My understanding is that banks are cutting people's credit limits to reduce their own (the bank's) liabilities and risks - even for prime borrowers. With the current economic uncertainties, today's prime borrower could be tomorrow's laid-off, upside-down-on-a-mortgage, insolvent borrower with a family to feed and house.

American Express was even offering selected members $300 to pay off their card and close their accounts.

Finally, there are a *lot* of good reasons to use credit cards - responsibly. Credit cards offer a variety of protections and advantages that debit cards don't.

 

[mom2princessj]

We have a gold and blue AMEX and neither limit has been reduced. I keep waiting for it to come and nothing is coming in the mail and we aren't getting any calls. We have excellent credit (782 and 770 respectively) and make all of our payments on time. Sometimes we pay the cards off monthly and sometimes we carry a balance depending on the month and we ALWAYS pay on time and via online payment so they are always getting their money from us. We haven't had any of our other cards reduced either (we have chase and my dh has a credit union visa)...and we don't carry balances on those I have no idea how they are picking and choosing...I'd love to be a fly on the wall when they make those decisions!

 

[Darcy03231]

Here's another person with spotless credit whose had cc limits slashed/interest rates raised. DH and I own our home and have about 8 years left on our mortage, own a lakehouse outright, own four cars outright (one of them a Corvette) and don't carry a balance on our cc's. We charged everything to get the rewards and paid the bill in full every month. Limits were slashed to about 20% of what they were and we got the letter about 2 weeks after it was done. I noticed it right away because I pay everything we've charged weekly, rather than monthly and saw it when I went to make a payment. I really didn't care about the raise in the rate as I've never paid any interest, but there was no reason for the slashed credit lines. While I really don't care about the slashed limits, the no notice ahead of time bothered me. As a PP pointed out, what if we'd been on vacation somewhere and were relying on our open credit line? That's what I have an issue with.

 

[brettb]

We have a gold and blue AMEX and neither limit has been reduced. <snip> We haven't had any of our other cards reduced either (we have chase and my dh has a credit union visa)...and we don't carry balances on those I have no idea how they are picking and choosing...I'd love to be a fly on the wall when they make those decisions!

Maybe your'e just shopping in all the right places. Or *not* shopping in the wrong places.

Like Wal*Mart.

http://consumerist.com/5115522/amex-lowers-your-credit-limit-if-you-shop-where-deadbeats-shop

http://www.msnbc.msn.com/id/27055285/

It sounds like a variety of factors - that change over time - go into a formula that determines who gets their limits raised or lowered and by how much. Where you shop (but not what you buy, they say), who holds your mortgage, the neighborhood you live in.

 

[arminnie]

Maybe I am equally isolated but I also have been fortunate to not see any decreases in limits.

Me too. And I don't even have a job.

I think a lot of it may be regional.

Don't take it too personally - all of this is done by computer. I live in an area where housing prices have not declined and unemployment is not too bad. I'd guess that people in my region are considered less risky than those in areas with huge unemployment and tumbling housing prices.

 

[razor7874]

So where did you get all this expert information on how people spend on the credit cards. I mean basically you are calling them liars so I would love to hear how you came to this conclusion except for the fact that it never happen to you.
That's like me saying all the people hurt and killed in Hurricane katrina didn't really have it happen because I've never personally seen a hurricane.

What does being reliant on your credit cards have to do with it. Any one who has a small business is reliant on their line of credit. Does that mean they should be taken advantage of. I guess in your world it does.

Bottom line: If you have been playing by the rules (making your payments on time and meeting the minum.) you deserve to have the terms you agreed to adhered to. I'm sorry that the idiots at the bank loosen their regulations to be greedy and now are getting their butts kick but heck if I'm going to be the scape goat.

Please keep your incorrect assumptions to yourself they are insulting.

Lol what rules are you talking about the terms of agreement? obviously you havent read them have you? the terms read they reserve the right to change them without notice. lol im just saying that people in general have come to rely on their credit so much and just making min payments is not enough to keep credit cards. I mean seriously if someone with a 25k limit spends 1000 a month and pays the min 60 dollars and does this every month the bank is seriously supposed to say ok they are paying the monthly min we should let them reach their limit? I mean cmon if it was your money on the line would you let that go? now i know the banks hold a lot of the blame because they were greedy and they gave ccs to people that didnt deserve them im sure we all know people that fit this category, but the reality is they did and now all of us have to pay for it with higher interest rates because the banks want their money and they arent gonna take responsibillity. I mean people are screaming why dont the banks fix this problem well guess what they are fixing and identifying high risks and there is nothing we can do about it. if they dont assess the risk right now credit markets would be completely destroyed and many more businesses would fail. my intention was not to make assumptions on yours or any others situation, but if you took it that way i appologize. i was just trying to say that if banks slashing credit limits, raising interest rates, and closing account makes people so angry if they have perfect credit why not just apply for another card no? do they have such a sentimental attachment to their cc? I can assure you that this is just the start of the credit crisis and it is not going away anytime soon. Everytime i see the news it has analysts saying that credit cards are the next house of cards with banks writing off billions of dollars in credit card defaults every quarter. This credit crisis was a wake up call for americans and seriously as much as i hate the banks for getting us into this problem i agree with what they are doing to solve the problem taking credit cards away from people who are high risks because i dont want to pay for other peoples or the banks mistakes and thats not saying you people in here are high risks please dont take it like that im just saying it as a general statement.

 

[brettb]

Lol what rules are you talking about the terms of agreement? obviously you havent read them have you? the terms read they reserve the right to change them without notice. lol im just saying that people in general have come to rely on their credit so much and just making min payments is not enough to keep credit cards. I mean seriously if someone with a 25k limit spends 1000 a month and pays the min 60 dollars and does this every month the bank is seriously supposed to say ok they are paying the monthly min we should let them reach their limit? I mean cmon if it was your money on the line would you let that go? now i know the banks hold a lot of the blame because they were greedy and they gave ccs to people that didnt deserve them im sure we all know people that fit this category, but the reality is they did and now all of us have to pay for it with higher interest rates because the banks want their money and they arent gonna take responsibillity. I mean people are screaming why dont the banks fix this problem well guess what they are fixing and identifying high risks and there is nothing we can do about it. if they dont assess the risk right now credit markets would be completely destroyed and many more businesses would fail. my intention was not to make assumptions on yours or any others situation, but if you took it that way i appologize. i was just trying to say that if banks slashing credit limits, raising interest rates, and closing account makes people so angry if they have perfect credit why not just apply for another card no? do they have such a sentimental attachment to their cc? I can assure you that this is just the start of the credit crisis and it is not going away anytime soon. Everytime i see the news it has analysts saying that credit cards are the next house of cards with banks writing off billions of dollars in credit card defaults every quarter. This credit crisis was a wake up call for americans and seriously as much as i hate the banks for getting us into this problem i agree with what they are doing to solve the problem taking credit cards away from people who are high risks because i dont want to pay for other peoples or the banks mistakes and thats not saying you people in here are high risks please dont take it like that im just saying it as a general statement.

Could you give paragraphs a try?

I think the problem some people have with your repetitive arguments is that you continue to say the banks are only cutting limits for high risk deadbeats. That's not true, and you never acknowledge that.

There are plenty of reports of banks cutting credit limits for objectively credit-worthy people. A credit freeze is *not* good for getting the economy going again; this isn't to say banks should be making risky loans. But they shouldn't be throwing the baby (prime borrowers) out with the bathwater (sub-prime borrowers) especially when they've benefited from federal programs designed to ease the credit freeze.

 

[bidnow5]

I never liked credit cards but always had one for emergencies and to use for car rentals. Over the years they kept raising my limit and I would call and tell them to drop it back we always used it to keep it active but never put more then a couple hundred bucks on it and we had it set up from the beginning where they take the monthly payment out of our checking so we never had a late payment. There was a $2500 limit well we got a letter a few weeks ago saying they canceled it and still I can't get them to tell me why. Now that I can rent cars with my debit card I wouldn't even think of getting another credit card

 

[Mary2e]

Banks are cutting limits due to reviews of creditworthiness.

Previously they gave cards to anyone with a pulse without checking the ability to pay back. Limits were way out of line with incomes and other debt.

That cause the banks huge exposure to default so they started reviewing all accounts and did what they should have done in the first place - give limits based upon the ability to repay the entire credit line's (card's) worth of debt.

It has nothing to do with whether or not you pay your bills on time, or even early, each month, nor if you pay the minimum or more. It's about them bringing your credit to what it should have been in the first place.