Can Amex Cancel or Reduce CL on Current Credit Score?

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SumTingWongFoo
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Can Amex Cancel or Reduce CL on Current Credit Score?

Postby SumTingWongFoo » Fri Aug 05, 2016 9:09 am

Greetings!

Recently I was approved for the American Express Blue Cash Preferred Card :cool: . My credit was pulled from Experian with a credit score of 670. I was approved for a 1,000 CL. I have one item in collections on my TU report. This item was reported to Experian yesterday, so now I assume that will knock my score down some. The Collections account was opened in 2012 on my TU. Equifax and Experian did not report this. Now that Experian will, how will this effect my current open credit cards, including my AMEX, since AMEX pulled from my Experian before the collections was added to that report?


Thank you.
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CarefulBuilder14
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Re: Can Amex Cancel or Reduce CL on Current Credit Score?

Postby CarefulBuilder14 » Fri Aug 05, 2016 11:21 am

Amex can reduce your CL or close the account for pretty much any reason at any time. A just-reported collection item certainly doesn't help.

That said, no one here can tell you what will happen.
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TXviking
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Re: Can Amex Cancel or Reduce CL on Current Credit Score?

Postby TXviking » Fri Aug 05, 2016 1:34 pm

When my delinquency (required by Wells Fargo as a condition of a shortsale) reported in 2010, AmEx responded by dropping my credit line from $34K to $8400. They didn't close my account, but they absolutely could have.

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CarefulBuilder14
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Re: Can Amex Cancel or Reduce CL on Current Credit Score?

Postby CarefulBuilder14 » Fri Aug 05, 2016 1:56 pm

TXviking wrote:When my delinquency (required by Wells Fargo as a condition of a shortsale) reported in 2010, AmEx responded by dropping my credit line from $34K to $8400. They didn't close my account, but they absolutely could have.

Having a $1k SL from Amex already seems like being on an AA watchlist...I do wonder if they'd just close the account, rather than CLD it.

I mean, how often does someone see a signature with a $500 Amex card?
Wallet: Prestige CSP SchwabPlat Freedom It Hyatt SallieMae AAPlat
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SumTingWongFoo
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Re: Can Amex Cancel or Reduce CL on Current Credit Score?

Postby SumTingWongFoo » Fri Aug 05, 2016 1:57 pm

TXviking wrote:When my delinquency (required by Wells Fargo as a condition of a shortsale) reported in 2010, AmEx responded by dropping my credit line from $34K to $8400. They didn't close my account, but they absolutely could have.


If you don't mind me asking, was that a forclosure?

Thank you.
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SumTingWongFoo
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Re: Can Amex Cancel or Reduce CL on Current Credit Score?

Postby SumTingWongFoo » Fri Aug 05, 2016 2:00 pm

CarefulBuilder14 wrote:
TXviking wrote:When my delinquency (required by Wells Fargo as a condition of a shortsale) reported in 2010, AmEx responded by dropping my credit line from $34K to $8400. They didn't close my account, but they absolutely could have.

Having a $1k SL from Amex already seems like being on an AA watchlist...I do wonder if they'd just close the account, rather than CLD it.

I mean, how often does someone see a signature with a $500 Amex card?



Good Point. Fingers crossed.
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SumTingWongFoo
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Re: Can Amex Cancel or Reduce CL on Current Credit Score?

Postby SumTingWongFoo » Fri Aug 05, 2016 2:01 pm

SumTingWongFoo wrote:
CarefulBuilder14 wrote:
TXviking wrote:When my delinquency (required by Wells Fargo as a condition of a shortsale) reported in 2010, AmEx responded by dropping my credit line from $34K to $8400. They didn't close my account, but they absolutely could have.

Having a $1k SL from Amex already seems like being on an AA watchlist...I do wonder if they'd just close the account, rather than CLD it.

I mean, how often does someone see a signature with a $500 Amex card?



Good Point. I appreciate your insight on this.


Fingers crossed.
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takeshi
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Re: Can Amex Cancel or Reduce CL on Current Credit Score?

Postby takeshi » Mon Aug 08, 2016 9:44 am

Any creditor can take adverse action and it's not just about score but all the data in the report. You're not free to do whatever with your credit after getting approved with no consequences. The data in your reports always matter to your creditors which is why the routinely review reports with soft pulls.

As others have stated. we can't tell you what AmEx will do in your case but the $1K limit already indicates that they have concerns with your credit.

SumTingWongFoo wrote:Now that Experian will, how will this effect my current open credit cards, including my AMEX, since AMEX pulled from my Experian before the collections was added to that report?

Different creditors have different risk tolerance thresholds. It's possible that all may take action against you. It's possible that some may and some may not. It's possible that none may. We have no idea. We don't know the specifics for your creditors and we don't know all the details regarding your credit profile.

If you have issues that you can address then definitely get to work on them. Do whatever it takes to avoid derogs going forward. They tend to have significant impact and can stick around for a long time if you are unable to remove them.



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