Comments on: American Express unexpectedly lowers credit limit, loses life-long customer

By: Dawn W

Dawn W — Fri, 12 Aug 2011 14:55:48 +0000

I paid my card off as I made a large amount on a home sale. They cut it from $25,000 to $1000. I called them and they said it was a credit review but my credit was better and my income was higher. Duh! Nothing like punishing the good guys. They would rather you never pay your card or ever have the ability. Just send em 20 bucks a month and they love you. Send them $25,000 and oh…you must be a bad client because you have money. Dummies!

By: John C.

John C. — Mon, 13 Jun 2011 17:01:31 +0000

Same old story here… customer for 9 years, never missed a payment, always paid over the minimum…

After 9 years of siphoning money from me via interest charges on running balances, American Express decided to:

1) Increase my APR from 8% to 16% to “keep up with the economy.”
2) Slash my credit limit from $10,000 to $4,000 for MY protection.
3) Continue to slash my credit limit to nothing until the account is paid in full.

Customer loyalty and 750 FICO means nothing to American Express.

By: CBO

CBO — Tue, 08 Mar 2011 17:46:20 +0000

Same story here. A year ago I was in the midst of purchasing a house so the mortgage company, of course, was checking our credit history. We had tried several times with purchasing a house so there were multiple inquiries to our credit scores. American Express notifies us in the middle of all this that they are cutting our limit. I had never missed a payment in the years that we had the card. Their letter was a crock. It stated that because of the inquiries they could no longer give us the same limit and thus reduced it. I called and I might as well have been talking to a robot. So as soon as I have it completely paid off, I will cancel. I wish the public knew more about this company and would boycott them out of business.

By: American Express Offers 1.30% Personal Savings Account - Eddie On Everything

American Express Offers 1.30% Personal Savings Account - Eddie On Everything — Wed, 03 Nov 2010 23:10:38 +0000

[...] on American Express,” because I’m still holding a grudge against American Express for lowering my credit limit without notice. That’s right – they tell you that your credit limit is $20,000, but if you charge just [...]

By: Jerry

Jerry — Sat, 06 Feb 2010 08:16:41 +0000

By the way, the sign and travel thing – they might be putting your payment against the recent charges, and not posting against that outstanding sign and travel balance. Otherwise, I can’t see how you could be 5 months past due. But actually, I had them remove that feature from my account, since there was confusion over how to pay the sign and travel.

In any case, you need to do whatever they say is required to get the payments current to get your score back up. I suggest that some of you might want to do a balance transfer from a mastercard or visa to pay of the amex card if it is in trouble, but it will cost you a 3% or 4% fee plus the interest. Good Luck, again.

P.S. They all look at your ratio of all balances to all credit lines and whether any card is within 75% of the limit (don’t take this number as gospel), and how long the cards have been open, so in many cases, if you cancel a card, especially an old one, it lowers your credit score, so look out there. Also, the credit inquiries stay on the bureau for 2 years, then drop off. There was also a situation after 911 where banks did a hard inquiry when you opened a new account with them, but I think that was corrected a couple of years ago, though the inquiries might be just now dropping off. I had one removed in the past, via complaint to a bureau. A bureau lady actually helped me. Sometimes I get lucky. Hope all this helps.

By: Jerry

Jerry — Sat, 06 Feb 2010 07:58:49 +0000

I got a letter a few months ago that American Express was lowering my limit on my OPEN Simply Cash silver card from $20,900 to $12,000 or $8,000, I forget, and that it was already done, I think it was. There was a number on the letter (their credit department – not customer service – ask for credit department’s number), and I called and they said I was not using the high amount. I said that I might make big purchases, and didn’t want to have to worry about it, I said I wondered what would it do to my credit, and they offered to put it back where it was, so I said ok. They did. I do have Blue, Clear, Hilton, and the Simply Cash silver card. I do pay them in full, though. If I ever see a missed payment, etc., I CALL THEM immediately. Do not just make the payment. You should have called right away when you realized you missed a payment, even .38 (if you didn’t). Also, when you apply for credit anywhere, the application has your current income, etc., so the card companies find out what is going on at that point. Until you apply for credit somewhere, the credit bureau’s don’t even know if you are out of a job or broke (is how I think it works), unless you miss payments. Sorry, but I love my Amex OPEN Simply Cash that gives 3% back on gas, and 1% otherwise. They also paid me $50 last year or so ago to keep using the card (OPEN has its own people) when I complained that they lowered the gas from 5% to 3%. Turns out Chase went 5% to 3% too, so I would have come back anyway. But as I say, I pay in full. Some of their cards require it, even if there is interest charged, etc.
My friend got the card I have, at my suggestion, and I believe he said it saved him $800 in rebates so far. I’ll find out when I apply for a mortgage next time, if it all caves in on me. Hope not. Ask for the credit department, and Good luck!

By: John Smith

John Smith — Tue, 15 Dec 2009 20:06:39 +0000

I know how the rest of you feel. I just got my card canceled, because I missed a payment. Some how on my last statement I stilled owed .38 Yes 38 Cents. I missed that payment and now I am canceled. Thank American Express I just got a better card with a better deal.
I would not laugh to hard at this, If you have american express you might just be nexted.

By: Why is Warren Buffett Selling Moody’s Stock Shares?

Why is Warren Buffett Selling Moody’s Stock Shares? — Thu, 10 Dec 2009 02:29:32 +0000

[...] downs in volume and in profit margins. American Express, my preferred credit card company, even cut the limits on loyal customers while terminating accounts on [...]

By: Kate

Kate — Sat, 14 Nov 2009 23:42:31 +0000

same thing is happening to me! i’ve been paying the balance on time and in full but they still need to review my credit and suspended both of my cards! i’m closing both cards immediately. they will lose their valued customers if they do not stop this annoying system.

By: Linda

Linda — Tue, 20 Oct 2009 23:02:29 +0000

And here is my Story