New AMEX Customer Trouble Help Plz!

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drmcstford
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New AMEX Customer Trouble Help Plz!

Postby drmcstford » Thu Oct 08, 2015 10:50 pm

Hey guys I hope you guys can give me some feedback as I'm stressing out here ! :(

So I wanted an AMEX card after having a BOFA Cash Rewards, and Discover card for a few years. After talking to rep I made up my mind about the Amex everyday card for points instead of the Blue cash, well being an idiot i signed up for Amex Blue Cash got approved (FICO:760) for $6500 and 16.74% after 15 months last night. Well I was chatting with a rep today and he said i could convert it to everyday after 2 months, not being convinced i called amex and they tell me i'd have to cancel the blue cash and re-apply for the everyday. They re-assure me that everything will be okay with no penalty's on my credit, i decide yes because i really want the everyday card for points. After re-applying i'm approved for the everyday card with $2500 line :confused: and I haven't found out my APR yet. Did i screw up? How much of a hit is my credit going to take? I'm pissed that my credit line is $4000 less, they told me to call back when i receive the card to ask for a credit line increase and explain the situation. The lady also said she write a note on my account, is this worth a shot ? Or am i stuck with $2500 ?

Thanks for the help guys these forums are awesome!! :lift:


Vermonster
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Re: New AMEX Customer Trouble Help Plz!

Postby Vermonster » Fri Oct 09, 2015 7:41 pm

This is an example of being too impulsive with not enough information. Whether you made the right choices or not, you have to live with them. Now you know what the saying "it pays to pay attention" means.
Chase Freedom $9k~~Chase Sapphire Preferred $6.5k~~Amex Blue Cash Preferred $12.4k~~Citi Double Cash $4.7k

Gamma
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Re: New AMEX Customer Trouble Help Plz!

Postby Gamma » Fri Oct 09, 2015 7:51 pm

Looks like the rep that told you to close your account before applying gave you false information. There was no guarantee you would have been approved for a second Amex card with the same credit limit. You can only hope the credit analyst you talk to will give you the credit limit increase to match the blue cash I'm assuming you closed down now. There will be a second inquiry in your credit report for applying for another Amex card. This is a lesson you will have to learn, but fortunately you got approved for it at least.

drmcstford
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Re: New AMEX Customer Trouble Help Plz!

Postby drmcstford » Fri Oct 09, 2015 8:25 pm

Vermonster wrote:This is an example of being too impulsive with not enough information. Whether you made the right choices or not, you have to live with them. Now you know what the saying "it pays to pay attention" means.

True, I should have been more cautious. Lesson learned.

Gamma wrote:Looks like the rep that told you to close your account before applying gave you false information. There was no guarantee you would have been approved for a second Amex card with the same credit limit. You can only hope the credit analyst you talk to will give you the credit limit increase to match the blue cash I'm assuming you closed down now. There will be a second inquiry in your credit report for applying for another Amex card. This is a lesson you will have to learn, but fortunately you got approved for it at least.

The rep had told me not to worry about closing the blue cash, so I did close it. Yea that's what I figured, that they had ran a second inquiry for the amex everyday. Do you guys think my credit score is going to take a big hit? I still haven't called for my APR but I'm guessing its going to be higher than the 16.74 so now i have to see about getting that adjusted and my credit line.... Any suggestions? :confused:

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Vattené
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Re: New AMEX Customer Trouble Help Plz!

Postby Vattené » Mon Oct 12, 2015 4:00 pm

As far as what your credit score will do, it depends on what your current credit profile looks like. You only mention two credit cards accounts for a couple of years, so a wasted HP may cause it to take a bit of a dive. HPs simply have a bigger impact on thinner files.

The real question is do you anticipate any major credit needs soon? If you won't be taking out a mortgage or trying to finance a car within a year, your score will easily rebound given good credit management otherwise.
-Vattené
FICO-8:
EX - 805 (12/16) | TU - 803 (12/16)
Primary Cards:
American Express EveryDay - $20,000 (10/14)
Discover it - $23,000 (2/14)
AU on Barclay Sallie Mae - $10,000 (8/15)
plus several store accounts of varying usefulness now

drmcstford
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Re: New AMEX Customer Trouble Help Plz!

Postby drmcstford » Mon Oct 12, 2015 5:11 pm

Vattené wrote:As far as what your credit score will do, it depends on what your current credit profile looks like. You only mention two credit cards accounts for a couple of years, so a wasted HP may cause it to take a bit of a dive. HPs simply have a bigger impact on thinner files.

The real question is do you anticipate any major credit needs soon? If you won't be taking out a mortgage or trying to finance a car within a year, your score will easily rebound given good credit management otherwise.


Well my credit profile includes the BofA Cash back rewards 4k Disocover it 4k Carecredit 6.7k and Kohls 1k and now this Amex at 2.5k. I don't know if thats considered thin?? I would like to refinance my truck which is currently under my dads name and put it under mine early next year.

I watch my credit and never utililize more than 30% on any card and try to not carry a balance often. My FICO score came in on the new amex card at 729 down from 760 which really bummed me out..... I have to wait 60 days to request a credit line increase to the original 6.5 k and will call in 15 months to get my apr down to 16.74 like the original card.

takeshi
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Re: New AMEX Customer Trouble Help Plz!

Postby takeshi » Tue Oct 13, 2015 9:00 am

drmcstford wrote:After re-applying i'm approved for the everyday card with $2500 line :confused: and I haven't found out my APR yet. Did i screw up? How much of a hit is my credit going to take? I'm pissed that my credit line is $4000 less

Closing a card with a limit of $X doesn't mean that you'll be approved for $X on a new card. The limit you qualify for at a given point in time is based on your credit and income at that point in time. Your credit is not static. After you were approved for the Blue Cash (which one?) it changed you credit and that's why you qualified for a lower limit on the Everyday.

Going forward, carefully research before taking action. If you want to PC then you should have waited until you were eligible to PC instead of closing and reapplying. We can't tell you the exact impact but every new account reduces your AAoA and incurs a hard pull.

drmcstford wrote:i decide yes because i really want the everyday card for points.

Speaking of carefully researching first, make sure you're running the numbers for your spend on any rewards card that you're considering. For point/miles cards don't just look at the earn rates but also look at redemptions to determine how the redemption method(s) you intend to use will affect point/mile value. Also make sure you're considering total cost/benefit and not just deciding based on whether or not a card has an AF.

drmcstford wrote:Well my credit profile includes the BofA Cash back rewards 4k Disocover it 4k Carecredit 6.7k and Kohls 1k and now this Amex at 2.5k. I don't know if thats considered thin?? I would like to refinance my truck which is currently under my dads name and put it under mine early next year.

Credit profile is not the same thing as card lineup. Your credit profile and how it is assessed based on the typical relative weights of the standard factors is what you need to consider.
http://www.myfico.com/crediteducation/w ... score.aspx

Your profile doesn't sound thin with that many cards and an auto loan. However, in addition to any other recent activity you just opened 2 new accounts. We can't say what sort of activity your credit profile supports but the decreasing limits should be taken as a sign IMO.


The good thing is that CLI's with AmEx are easy as long as your credit profile qualifies for one. Google and read up on "3x CLI". 60 days no longer seems to be enforced but the rest of the guide is still valid.

Vermonster
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Re: New AMEX Customer Trouble Help Plz!

Postby Vermonster » Tue Oct 13, 2015 9:39 am

drmcstford wrote:
Well my credit profile includes the BofA Cash back rewards 4k Disocover it 4k Carecredit 6.7k and Kohls 1k and now this Amex at 2.5k. I don't know if thats considered thin?? I would like to refinance my truck which is currently under my dads name and put it under mine early next year.

I watch my credit and never utililize more than 30% on any card and try to not carry a balance often. My FICO score came in on the new amex card at 729 down from 760 which really bummed me out..... I have to wait 60 days to request a credit line increase to the original 6.5 k and will call in 15 months to get my apr down to 16.74 like the original card.


As Takeshi said, it depends. With a score jump of 760 to 729 based on 2 HP and new accounts I would say, Absolutely you have a thin file. To me, a thin file is one that changes drastically with small changes in the report.

I have a what I would call a "moderate" file, 4 cards, 2 auto loans, and 15 active student loans, with an AAoA of 4.5 years. I opened my Amex and Citi within a week of each other. The resulting HPs and hit to AAoA dropped my score from a 714 to a 706. You can see how little of a change 2 new accounts had. Some people might still consider my file "thin" when you consider that there are people out there with 10+ cards and 10+ years of AAoA.

Also the fact that you truck is under you dad's name means that no bank know about it. You should have set that up as a cosigner so it would at least show on your credit report. Your bank might make you jump through some hoops to get it in your name. Are you co-owners according to the registration?
Chase Freedom $9k~~Chase Sapphire Preferred $6.5k~~Amex Blue Cash Preferred $12.4k~~Citi Double Cash $4.7k

drmcstford
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Re: New AMEX Customer Trouble Help Plz!

Postby drmcstford » Fri Oct 16, 2015 3:18 pm

takeshi wrote:Closing a card with a limit of $X doesn't mean that you'll be approved for $X on a new card. The limit you qualify for at a given point in time is based on your credit and income at that point in time. Your credit is not static. After you were approved for the Blue Cash (which one?) it changed you credit and that's why you qualified for a lower limit on the Everyday.

Going forward, carefully research before taking action. If you want to PC then you should have waited until you were eligible to PC instead of closing and reapplying. We can't tell you the exact impact but every new account reduces your AAoA and incurs a hard pull.


Speaking of carefully researching first, make sure you're running the numbers for your spend on any rewards card that you're considering. For point/miles cards don't just look at the earn rates but also look at redemptions to determine how the redemption method(s) you intend to use will affect point/mile value. Also make sure you're considering total cost/benefit and not just deciding based on whether or not a card has an AF.


Credit profile is not the same thing as card lineup. Your credit profile and how it is assessed based on the typical relative weights of the standard factors is what you need to consider.
http://www.myfico.com/crediteducation/w ... score.aspx

Your profile doesn't sound thin with that many cards and an auto loan. However, in addition to any other recent activity you just opened 2 new accounts. We can't say what sort of activity your credit profile supports but the decreasing limits should be taken as a sign IMO.


The good thing is that CLI's with AmEx are easy as long as your credit profile qualifies for one. Google and read up on "3x CLI". 60 days no longer seems to be enforced but the rest of the guide is still valid.


Thanks for all valuable information takeshi. So it turns out my original FICO score for the blue cash was 732 and for the everyday card it dipped to 729 :cool: so not bad after all ! I guess discover and amexi look at my FICO score differently. Either way My credit wasn't hurt too much just 2 point. I've researched my amex for rewards and I'm looking at different routes to get to them faster with purchases that i need to make. In 60 days i'll be trying the "3x CLI" as well, again thanks for all the feedback guys !



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