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Forums Payment cards American Express Credit limit decrease on Amex card

  • hugo r 287 posts

    I’ve got a stupid high limit on my Amex gold card this is the only line of credit I have.

    The limit is never used , I’m thinking of getting another Amex card however from reading other posts concerned that the new application maybe declined due to the high limit on my gold card.

    If I decrease the credit , does it have a negative impact on my credit score ? Also how long does the reduction of credit take to fully update In the Amex system

    Any help appreciated

    BuildBackBetter 705 posts

    Your credit score is irrelevant. Each bank looks at your credit profile and use their own internal scoring.
    Reducing credit limits is good for your credit profile.
    After you reduce the limit, wait for the calendar month to finish. Many credit databases are updated once a month. Apply for new card after 5th of the next month.

    Harrier25 874 posts

    Brighton told me once that the maximum credit limit allowed per customer across their credit card portfolio is £30,000.

    Carlos 758 posts

    Reduction is instant or max 15 mins

    Gary_Dexter 133 posts

    Reducing is not a good thing. Most lenders frown upon it and wonder why you’re reducing your limit – potentially because you can’t trust yourself with it. Keep it as is.

    Gary_Dexter 133 posts

    Brighton told me once that the maximum credit limit allowed per customer across their credit card portfolio is £30,000.

    I have double that on my Amex Gold CC

    Harrier25 874 posts

    Reducing is not a good thing. Most lenders frown upon it and wonder why you’re reducing your limit – potentially because you can’t trust yourself with it. Keep it as is.

    That is a complete fairy tale. If you reduce a few at once, then maybe yes. Reducing one every so often, then definitely not an issue. They’re more likely going to frown at you with £60,000 on an Amex Gold CC!

    Rui N. 847 posts

    Brighton told me once that the maximum credit limit allowed per customer across their credit card portfolio is £30,000.

    I have double that on my Amex Gold CC

    Before cancelling my Plat I also had around £40k.

    BuildBackBetter 705 posts

    Reducing is not a good thing. Most lenders frown upon it and wonder why you’re reducing your limit – potentially because you can’t trust yourself with it. Keep it as is.

    That makes no sense. A customer with super high credit limits (relative to income) is a huge risk for banks compared to one who actively reduces the amount he can borrow.

    Remember, cancelling a card is different- that can be a negative, especially if it has been held for a long time.

    BuildBackBetter 705 posts

    Reduction is instant or max 15 mins

    Yes, but even Amex’s own new application processing system doesn’t get updated immediately.

    Luca M 391 posts

    £50k limits have not been unheard of for Amex Credit Card in the UK, so the Brighton person may have been either incorrectly informing you or was talking about a particular customer profile.

    I am a good earner and my total credit limits across all my cards is more the. 1.5 my annual salary and when I last applied for an Amex CC I got a 5 digit limit, so it does depend on customer profile (I also have over 20 years of Amex Membership).

    Honestly I cannot think that one line of credit with a very high limit would be the reason to get declined, unless that limit was recently increased and/or you have not been a customer for long.

    hugo r 287 posts

    I’ve only been a customer for 3 months not sure what to do

    BJ 659 posts

    With respect to amex, reducing your credit limit on one of their cards makes it more likely your application for another will be successful and approved instantly without review. This is because if you are currently close to the limit amex is happy to make available to you based on your circumstances then they will not approve a new card. If you reduce the limit on card X then you cannot apply for an increased credit limit again on card X for 3 or 6 months, sorry I cannot recall which.

    John 1,017 posts

    I’ve only been a customer for 3 months not sure what to do

    Are you willing to reveal what your limit is and what income figure you declared to Amex?

    Anyway I would not do anything until 6 or 7 months

    hugo r 287 posts

    Hi john My limit is 10K I’m a nurse so salary is 27K interested in getting the BAPP card once they up the bonus so not if should decrease now so when they do announce a bonus (apparently sometime next week according to a post yesterday ) I will hopefully be successful first time without the need of calling and asking for the application to be reviewed

    NorthernLass 7,975 posts

    I think the post yesterday may have been tongue in cheek!
    I’ve has a similar issue recently and was told I actually had to cancel my gold card before I’d be approved for another BAPP. But my 10k bonus MR points had just arrived early so I had no problem doing that.

    Gary_Dexter 133 posts

    Reducing is not a good thing. Most lenders frown upon it and wonder why you’re reducing your limit – potentially because you can’t trust yourself with it. Keep it as is.

    That is a complete fairy tale. If you reduce a few at once, then maybe yes. Reducing one every so often, then definitely not an issue. They’re more likely going to frown at you with £60,000 on an Amex Gold CC!

    It’s really not a “fairy tale”.

    davidl 31 posts

    I have a £30k limit credit card and £75k charge card limit and have no issues

    Harrier25 874 posts

    I have a £30k limit credit card and £75k charge card limit and have no issues

    The £30k limit that I was informed about relates to credit cards, not charge cards. But from other peoples comments here, what the adviser told me last year isn’t entirely correct.

    Andrew. 490 posts

    I’ve got a stupid high limit on my Amex gold card this is the only line of credit I have.

    The limit is never used , I’m thinking of getting another Amex card however from reading other posts concerned that the new application maybe declined due to the high limit on my gold card.

    If I decrease the credit , does it have a negative impact on my credit score ? Also how long does the reduction of credit take to fully update In the Amex system

    Any help appreciated

    The biggest negative on your Credit Score (being mindful that each bank uses its own algorithm from the data supplied), is the fact that you’ve only got one line of credit.

    Even before “normal” finance, I’ve got credit lines from Thames Water, EE, BT sitting on there.

    If anything, get yourself a mainstream Mastercard with a 0% fX benefit before you take on another Amex card.

    the_real_a 9 posts

    No although is sounds counter productive, a higher UNUSED credit line is seen as a positive to OTHER lenders as potential bad debt is less due to credit line headroom and any cash flow issue would be spread across lenders. A high UTILISATION % of total credit line across lenders is weighted negatively regardless of absolute credit line. For example £5000 debt on a £6000 credit line would score less than £5000 on a £60,000 credit line all other factors being equal. Lenders monitor financial situations of customers via credit reference agencies in real time (usually monthly) so an initial acceptance means noting to an ongoing relationship.

    I should caveat that that every lender has its own rules, floors and ceilings so this is “generally speaking”. BJ`s point above is correct, that if you hit a house ceiling for credit then reducing other lines in that house will improve your ability to get other products form that house.

    CREDIT UTILISATION VELOCITY is term that carries a heavy weighing on scores – effectively doing anything quickly that effects your rolling average of behaviour signals greater risk via a change in circumstances. Almost always, a bad debt situation is proceeded by an out of tolerance CUV.

    Sorry for the technical terminology, but hope you get the jist.

    BuildBackBetter 705 posts

    I have a £30k limit credit card and £75k charge card limit and have no issues

    The charge card limit isn’t reported to credit agencies. Whatever you have outstanding every month is what gets reported.

    Harrier25 874 posts

    Oh, the beauty of a charge card. I won’t be giving up my Amex Green charge card in a hurry!

    BuildBackBetter 705 posts

    Oh, the beauty of a charge card. I won’t be giving up my Amex Green charge card in a hurry!

    Yep, one of the biggest advantages of a charge card.

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