Amex gave me wrong credit limit

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undutchable
 
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Amex gave me wrong credit limit

Postby undutchable » Mon May 23, 2011 5:42 pm

I just received a letter from American Express that explains they experienced an error when they processed my new American Express account which caused them to assign me with incorrect credit limit. I was getting $7000 credit limit by the time I received my new card in April. I spent around $1700 for my previous travel (i have Blue Sky).

Now I have new credit adjustment of $2000 from $7000. That is VERY big credit decrease. Now that with my new credit limit of $2000 and I have $1700 outstanding balance; it looks like that I almost max out my credit limit. This will affect my credit rating and this is totally not my fault that they experienced error and assigned me with incorrect credit limit, isn't it? If i was informed in the beginning that I only received $2000 credit limit, i would not have bought flight ticket using my new Amex Card.

Now apparently I don't have option but paying it full or paying a certain amount so that it doesn't look like i use up most of my credit limit. But that was not why I applied Amex at the first place! I wanted to enjoy my 1-year 0% APR.

Any advice? Amex is screwing me up! :mad:


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Light fast
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Postby Light fast » Tue May 24, 2011 3:23 pm

Why don't you use another Credit Card till your outstanding balance is around $500?
[color=blue"]Current Credit Cards:
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DoingHomework
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Postby DoingHomework » Fri May 27, 2011 2:26 pm

And more importantly, why don't you pay off the entire balance? Carrying a balance on your card is not a good thing and is probably why they have restricted your credit limit.

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Mogul of Pineapples
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Postby Mogul of Pineapples » Sat May 28, 2011 5:54 pm

That is the first time I have ever heard of that happening and like you said, 2,000 vs 7,000 is a big difference. If 2,000 isn't enough to accommodate your monthly spending and keep a low utilization (and it probably isn't) my advice would be to multiple payments throughout the month whenever your balance begins to exceed 20 to 25%. That way you will be able to keep a low utilization, even with the low credit limit.
Disclosure: I am a moderator/paid staff of this site, which does have advertising relationships with some credit cards that are discussed and linked to. Regardless, anything I say is my honest opinion.

Current Cards:
American Express: Blue Cash, Simply Cash Bank of America: WorldPoints Platinum Plus Chase: Amazon, British Airways, Cash Plus Rewards, Freedom, Ink Cash Citi: Thank You Premier, Dividend Platinum Select Discover: More
Primary Everyday Card: American Express Blue Cash
Primary Travel Card: Chase Sapphire Preferred

undutchable
 
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Location: Los Angeles

Postby undutchable » Tue May 31, 2011 8:29 am

DoingHomework wrote:And more importantly, why don't you pay off the entire balance? Carrying a balance on your card is not a good thing and is probably why they have restricted your credit limit.


I didn't pay off the entire balance because I was taking advantage of 0% APR and $1700 balance out of $7000 limit still looked alright for my credit rating right?
Why did they restrict my credit limit for using 25% of my limit and taking advantage of 0% that they offered me at the first place?

Mogul of Pineapple, thanks for your advice! $2000 a month is more than enough for me to accommodate my spending. Beside i still have another card. I am just worried that this sudden big decrease will affect my credit rating. If i had known I only had $2000 limit, I would have not used Amex to purchase flight ticket. I would have used my Citi card that also has $7000 credit limit.

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Mogul of Pineapples
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Postby Mogul of Pineapples » Mon Jun 13, 2011 7:53 pm

undutchable wrote:If i had known I only had $2000 limit, I would have not used Amex to purchase flight ticket. I would have used my Citi card that also has $7000 credit limit.


You should tell them that. Not likely that it will do any good now but in a few months after having a flawless payment history, perhaps AmEx will reconsider. If I recall correctly, another member on here craigm1 started with a low limit with Amex and over the course of a year with using his card heavily, his limit was increased multiple times to an amount a few times his original limit- pull up his posts to see his story. As long as you are using your card and using it responsibly I would be surprised if 6 or 12 months from now you can't get a higher limit.
Disclosure: I am a moderator/paid staff of this site, which does have advertising relationships with some credit cards that are discussed and linked to. Regardless, anything I say is my honest opinion.

Current Cards:
American Express: Blue Cash, Simply Cash Bank of America: WorldPoints Platinum Plus Chase: Amazon, British Airways, Cash Plus Rewards, Freedom, Ink Cash Citi: Thank You Premier, Dividend Platinum Select Discover: More
Primary Everyday Card: American Express Blue Cash
Primary Travel Card: Chase Sapphire Preferred



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