Amex CUTS Credit Limits Without Warning: What You Can Do – Ask Sebby

IF YOURE LOW ON CASH Here’s a tip for cash advance:
To avoid the HIGH rate just buy some gold on your card at your norm rate and resell it for a tiny loss if any. And sit on the cash and pay the minimum.😉

#Close your American Express

Back in 2008 during the financial crisis Amex sent me a "love letter" stating that they were suspending my Gold Card Pay Over Time and Sign & Travel privileges and that any purchases over the threshold for extended payments would be immediately due and payable upon receipt of my statement. They also stated that any major purchases might not be approved. I never ever used the extended payment option with them. I also have an Amex Blue Cash card where the credit limit was slashed from $25k to $10k and to this day the limit was never reinstated. But in their letter they detailed very specific reasons for suspending my extended payment options. 1: The timing of my payments showed a history of being made more than a week after the closing date or in some cases the day before the due date (I never missed a payment, ever.). 2: The balances on other credit cards was too high in relation to credit limits. 3: The amount paid to other creditors was mostly the minimum due. 4: My FICO score dropped significantly (because other creditors lowered my credit limits and my utilization skyrocketed). 5: "Predictive Factors" about my future credit worthiness was an influence ( I never missed a payment with anyone). I'm told that they might look at not only my past spending habits but where I spend could influence their decision to keep me as a customer. They eventually reinstated my extended payment privileges about a year later but I never used it. And the reason I paid other creditors the minimum due was because they were 0% interest balances; basically a free ride. I guess I was on the edge of being fired as a customer.

Haven’t lowered any of mines yet. Also since this started I got the blue business 18k limit and Hilton Aspire 25k limit. Oldest card with them is only 2 years. Also have 6 other cards with them

It happened to me. Without warning, my limit was decreased from $20,000 to $10,940. I called customer service and the representative opened a reconsideration case for me. I was contacted by a credit analyst the next day and was asked to submit proof of income. Since 99% of my income consists of a salary I receive from my employer, the analyst and I agreed that I would submit my paystubs rather than my tax returns. Within a day, my limit was reinstated. Out of curiosity, I asked the analyst what triggered the credit limit review. She explained that an unusually large purchase had tripped the algorithm. Apparently, my espresso machine was deemed a risk by the algorithm!

This is exactly what happened in 2008. Next up, your rewards are going to disappear without warning. And guess what, you will have no legal recourse when they steal them from you. I learned these lessons the hard way back in 2008/9 so take your rewards and switch them into Amazon dollars or anything else you have control over. And do it quickly.

Feels pretty reasonable. You hit it on the nose; Amex makes their revenue on credit cards alone. Why would they not adjust the business model accordingly?

They cut my limit as well, had been with them a long time, over fifteen years, I cancelled the credit card, told them that they could keep their card.

Eh, they actually increased mine by $7500 without me even asking. Hopefully, they don't lower it, though. I keep a zero balance but I use it all the time.

I cut mine up years ago, because it was refused by so many retailers, they have to pay AE too high a commission.

300k month limit dropped to 50k. Extremely frustrating

They took away 26000 from me from my 5 cards

Amex lowered my skymiles from $1100 to $7500, I immediately withdrew the $15 000 I had on Amex savings, idiots

I accumulated debt due to the environment, my credit history with them is really good, due to the business shut down, they put three of my cards to 0 % for 36 months

Its just business

I received a letter dated 8 May 2020 from Amex. They reduced the limit on my Amazon Prime Business from $15,000 to $5,000. They cited low usage as the reason. They left Simply Cash Plus ($10,500), Blue Business Cash ($13,500) and my old Blue personal card ($10,000) alone-despite rarely using them. Historically, I did use those cards more than Amazon, but now only Blue Business Cash gets much spend. I am leaving it alone; $5,000 is plenty for my spending.

What credit limit. AMEX always says NO PRESET SPENDING LIMIT?

Not sure if there's a video about this. I've never made a late payment, and AMEX has increased my APR by almost 6%. Does this happen?

Sooo informational

It's really nasty if one is in transit (traveling) and stranded due to the cut. Perhaps we need a national credit line and even a national bank which services all citizens.

I’ve never missed a payment, put 10s of thousands of dollars through their cards with out issue. Sometimes over $1000/day in adspend. They just slashed my balance limit to $3300. Absolute joke.

Thanks for this communication and wonderful video
Please advise as recently my existing credit card limit
has been reduced to 50 percent of previous limit
My monthly credit card utilisation ratio is below 10%
in old and new both limits scenarios.
Should i apply for new credit card with value of limit
reduction to maintain my current cibil score or
should not apply as my monthly credit utilisation is
well below 10 percent in new scenario. Please advise so that my cibil is not impacted adversely.

I love ❤ your video's very smart and intelligent young 👨 thank you. 😊