Newark, New Jersey
12 comments

open costco american express - $5,000. credit limit

reduced credit line to $2000 when balance due was

$1,800. Called and told my credit reveiw was

not proper - received credit report showed

two items which were not open - also they

stated I never was late and alway paid far

more than minimum payment - gave me a

bad taste for costco - they should be aware

of what A E is doing in their name. I am not sure

if I want to upset myself by calling costco. What can I do? I many other credit cards so no having the use of american express is not a necessity

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Anonymous
#41945

I just returned from a long overdue and well deserved vacation to find my AMEX blu acct drop from 8k to 2k ( leaving me 1k er so...) After speaking to a rep about said issue only confirmed that yes it was no fault of my own, as for the past 9yrs I have always paid above mins and have never ever been late.... I am enfuriated, I am a single carreer orentiated american woman, seeking to build my credit as to someday achieve that american dream of being a homeowner, how pray tell will I ever get ahead...I am being punished for attempting to build credit worthiness..

Ive from the get go been advised, never pay off you card in their entierty , you have to build credit... and I sincerely thought I was on the fast track... I can easily pay off this balance...

However whats rubbing me wrong here is they (amex) reducing my line jest made my score drop - their explanation: upon review of said credit profile and re evfaluation of risks( based on experidian), they now feel that bc I am @ 55% utilization overall the decrease had to happen... whaaa?

Anonymous
#40149

anita,

well...seems i hit a nerve. sorry but the state of the american economy is testament to people not living within there means. you are all living on speculated money that doesn't exist...your nation and your people are a debter nation...it's a house of cards...as your finding out now.

using credit cards is...not living within your means...thats idiotic...your borrowing money...how sad is that...and i've never borrowed money...and that also means tax payer money...have worked nonstop since i was 14.

you're sad...in debt...i bet you use amex at mcdonalds...does it make you proud borrowing $7 from amex to buy a happy meal....seems kinda sad when you look at it that way...don't you think...

Anonymous
#40142

Anita,

There are ways that a company is able to review your personal credit information without it counting as an inquiry on your report. Amex, like most credit card companies, exchanges information with the credit reporting agencies. If its considered a 'Soft Pull', it isn't likely to show on your report. The Amex cardmember agreement also clearly states that credit information will be reviewed regularly.

I'm not sure who's name the card is actually under, but the credit information that is looked at is only the information belonging to the main cardholder. It sounds like you might be under the assumption that your credit and your husbands credit BOTH matter.

If you really were carrying a balance simply because you could, it likely wouldn't matter if the line was adjusted. If the only reason you use credit is to show good repayment history, and you're financially able to sustain every purchase you make, would it not make more sense to charge on the card and then pay it off immediately? I'd like to say i see why you're angry, but I can't. American Express isn't obligated to lend you anything. Your credit score could go down a few points because of the change? Pay off your balance. You aren't entitled to anything if the company you seek credit from doesn't feel comfortable extending it to you. You're not a customer -- You're a borrower.

Either way, thank your government, thank the financial industry, and thank the millions of people in the country who can't just live within their means. The reins are being tightened, you know that.

Anonymous
#38741

To: CherryFlavordnapalm... LMAO, to begin, its clearly obvious you dont have good credit!

I personally can tell you purchasing a house is a lot easier when you have had credit cards showing good payment history. Having credit cards has nothing to do with living within your means. There are those out there (I will assume you being one) that dont understand the meaning of "loan". Living within ones means is in the eye of the beholder.

I suppose if you sit on welfare and collect others hard working tax paying money... yeah you probably shouldnt have a credit card. I myself use credit cards for non other than the fact I can..lol.

Oh, and if you insist on insulting someones INTELLIGENCE because they own a credit card, perhaps you should make sure you at least spell INTELLIGENCE correctly. Im sure its because of people like you American Express does things like this to good customers.

Anonymous
#38734

American express did the same thing to my husband and I just recently. I will first start by saying I wouldnt give a *** if it wasnt for the fact its messing with MY fico score.

My husband and I started out six years ago with a $5000 limit. Never been late, always make over minimum payment, have even paid the card off several times. In more recent days we used the card for home improvements on our rental property. It strikes me as odd!

In march 2008 my husband found out because he is active duty military he has benefits to reduce interest rates with debt acquired, home loans, credit cards, car loans.. etc. We definately took advantage of this. We submitted the paper work to American Express.

Upon doing so, (mind you the only company, that gave us problems) it took them several months to change the interest rate. In july 2008 it was changed, August statement came out and what do ya know, our credit limit had been reduced to $4600. I was irritated but it was only $400 so I let it go. So, I got my credit card statement this month (sept 2008) to find my limit had been reduced again, now putting me at $3600.

I called American Express to hear their reasons, LOL! Only to get a bunch of mindless, unjust bullShi*&! They claim to have ran my husbands and my credit... BIG FAT LIE!

I have credit monitoring on both of us and American Express has not had our credit pulled in several years. So, now our credit reports read: open account, HIGH balance $5000, Credit limit $3600! This is nonsense! My fico score is 720, my husbnads is 750.

We have credit cards with no balances, plenty of assets, and NOT one thing on our report EVER being reported late.This just seems really unjust to me. My score wont be updated until next month, cant wait to see where this is going to put my husband and I!

Yeah it is their money but its OUR credit! Im in the process of looking for a new house to buy, having a HIGH balance, isnt exactly a thing to do in todays economy when purchasing a home!

Anonymous
#27703

alt2, No pre-set limit implies that the card did not have a limit set in advance. It doesn't mean it is an unlimited card.

Why give a half story alt2? What are you leaving out?

I doubt they would arbitrarily set a limit on your account without cause. There has to be a reason it was set.

Anonymous
#27323

Today, they decreased my credit line to $3k on my amex card that has no preset limit. I have charges from $2k to 15k a month because I put all my Biz expense on it.

I have always paid my bill every month. They told me it is a pretty new policy and if i am 50% utilize on my other cards, then they put a limit.

This is ***. I used to not hate them and now i'm going to figure out another card to but my biz exp on

Anonymous
#25592

well, if anything near intellegent would realize items on your credit report, no matter paid, or how many years ago are still negatives on the report. They show you had at a time had trouble paying on your bills...or you have too much debt and credit...it's fairly simple to live within your means, living on credit and debt is an idiotic thing...

and lawsuit?

sue a company because it's not lending you as much...? can you sue a friend who will only lend you $20.00 as opposed to $100.00...YOU ARE BORROWING MONEY...don't *** because they won't lend you as much

Anonymous
#25420

What does never being late with your payments have to do with anything? Isn't that the principal component in the borrower-lender relationship? Why should you be rewarded for doing what you agreed to do when you initially borrowed the money? I've never been rewarded for not murdering anyone.

Basically, if something negative is on your report, open or not, it can affect you.

Don't live in debt. Live within your means.

Anonymous
#19521

This happened to me to!! Amex just cut my credit limit by 90% and offered no other reason for doing so. I have never been late and I always pay off the debt in full.

I would support a class action lawsuit.

Anonymous
#12767

I just got a letter from Amex the other day. Went from 6600 limit to $500.00 right after I paid it off.

I called told them I didn't think it was very good customer service, was given the same BS reasons above. They said I owe to much for the amount of credit I have. I asked the person on the phone how may times I was late and of course the answer was none. I am not sure why they are trying to lose customers doesn't really make since.

I am pretty much though with then. I haven't closed the account since that is even worse from my credit than having my limit decreased. I think I will just not use it, pay them $1.00 a month so that they will have to incure the cost of refunding it.

Anonymous
#8543

Pay it off and never use it again. That's what we're doing. They just cost us our mortgage, claiming credit issues, during a month when our credit ratings increased by twenty points. We have been paying aggressively on our AMEX for the last six months after a year that had been difficult for us (medical bills, hug), but still we were never late.

Amex is aggressively slashing credit limits of paying customers because of those who aren't paying.

This is a class action lawsuit begging to happen.

Thank your neighbors who declared bankruptcy, foreclosed because they couldn't pay their inflating variable rate mortage and their credit card debts.

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