American Express Credit Card Exposure Limits
Guest: ore83
Post subject: American Express Credit Card Exposure Limits
Posted: Fri Mar 03, 2006 1:45 am
So as a few of you know I just received One from AMEX. It's a charge card rather than a credit card, with the flexability to pay over time, not PIF every month. I see some people mention the "exposure limit" rather then a credit limit, and that some people on here have gotten the customer service reps to tell them their "exposure limits".
I asked when I first applied, and the guy wouldn't tell me anything, only that it "doesn't have a limit". I know that it does, but this guy wouldn't budge. So finally I got the card in the mail, called 'em up and asked them about their limit again. The lady told me that the only way to see the limit would be for her to "dummy-charge" the acct and see if it takes it. So I had to pick a number ($2,500) and see if it would accept it, it did... You'd think I'd be less confused by that but it just sparked more questions in my mind.
So I asked does the limit change from month to month? She said it does, it depends on payment history and other things that show whether or not you could afford the charges. And that as long as I make payments on time and don't go into default the "exposure limit" should do nothing but go higher. But how high??? You guys got actual numbers from these people, and I can't seem to get them to budge, they only can put "dummy-charges" through and see if it'll accept them. Are you guys maybe wording things differently from how I am when you speak with them? Eh... SORRY for the long post, but this has got me really curious.
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Guest: Polonius
SENIOR MEMBER (Member for 2 yrs.+)
Posted: Fri Mar 03, 2006 1:58 am
So, what you're being told is that there really is a limit, but the CSRs can't see what it is. That makes sense. What's the question, again?
Why not just keep calling and asking if $x will be approved? You know $2500 works. Say you're thinking of buying a $25,000 car and ask if that will be approved. You can pin down that limit as long as the CSR will make those dummy transactions and tell you the computer response.
_________________
Polonius
"Neither a borrower, nor a lender be; For loan oft loses both itself and friend"
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: ore83
Posted: Fri Mar 03, 2006 2:47 am
I guess the question was how other people asked to get their own limits, since I can't get that answer, I've gotta play the dummy charge game. Heh, I bet if I asked for them to try $25k I'd be turned down lol, but it would be neat to know if they'd match my Blue card's limit of $5k, I wouldn't ever really need a limit higher than that I don't imagine.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: creditnewbie
Credit Expert (100+ Posts)
Posted: Fri Mar 03, 2006 7:19 am
AMEX charge cards are a little tricky. In general, the limit is double the highest payment you make--given you paid it in full.However, if the rep tests the card with an amount that gets declined, it doesn't mean that you can't charge that amount in several transactions. I got the platinum card recently and asked them about the limit because I'm going to europe and I'm planning on using the card exclusively. The rep tested $45,000 and she said that because she tested one big charge, it didn't go through, but she was able to make 2 charges that added up to the amount. So probably, you can make one large purchase, but they will have the merchant call the center so that AMEX verifies your identity and banking information. Or if you make several transactions that add up to a large sum, they will end up freezing your account until they verify your ability to pay back. It all depends on your history with them.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: mouse
SENIOR MEMBER (Member for 2 yrs.+)
Posted: Fri Mar 03, 2006 8:06 am
I ONLY HAVE AMEX "CREDIT" CARDS WITH STATED CREDIT LIMITS
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: credithelp
Credit Expert (100+ Posts)
Posted: Fri Mar 03, 2006 9:36 am
The bad thing about an exposure limit is that it is attached to many factors. If you owe alot on other credit cards(especially amex cards) they will lower your exposure limit. If they see something negative in the credit report they will lower it. You can never rely completely on a card that has an exposure limit since you find out the hard way when it has been reached.
Since i now owe some on other credit cards and have high lines with amex , they lowered my exposure limit to 1k.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Post subject: American Express Credit Card Exposure Limits
Posted: Fri Mar 03, 2006 1:45 am
So as a few of you know I just received One from AMEX. It's a charge card rather than a credit card, with the flexability to pay over time, not PIF every month. I see some people mention the "exposure limit" rather then a credit limit, and that some people on here have gotten the customer service reps to tell them their "exposure limits".
I asked when I first applied, and the guy wouldn't tell me anything, only that it "doesn't have a limit". I know that it does, but this guy wouldn't budge. So finally I got the card in the mail, called 'em up and asked them about their limit again. The lady told me that the only way to see the limit would be for her to "dummy-charge" the acct and see if it takes it. So I had to pick a number ($2,500) and see if it would accept it, it did... You'd think I'd be less confused by that but it just sparked more questions in my mind.
So I asked does the limit change from month to month? She said it does, it depends on payment history and other things that show whether or not you could afford the charges. And that as long as I make payments on time and don't go into default the "exposure limit" should do nothing but go higher. But how high??? You guys got actual numbers from these people, and I can't seem to get them to budge, they only can put "dummy-charges" through and see if it'll accept them. Are you guys maybe wording things differently from how I am when you speak with them? Eh... SORRY for the long post, but this has got me really curious.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: Polonius
SENIOR MEMBER (Member for 2 yrs.+)
Posted: Fri Mar 03, 2006 1:58 am
So, what you're being told is that there really is a limit, but the CSRs can't see what it is. That makes sense. What's the question, again?
Why not just keep calling and asking if $x will be approved? You know $2500 works. Say you're thinking of buying a $25,000 car and ask if that will be approved. You can pin down that limit as long as the CSR will make those dummy transactions and tell you the computer response.
_________________
Polonius
"Neither a borrower, nor a lender be; For loan oft loses both itself and friend"
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: ore83
Posted: Fri Mar 03, 2006 2:47 am
I guess the question was how other people asked to get their own limits, since I can't get that answer, I've gotta play the dummy charge game. Heh, I bet if I asked for them to try $25k I'd be turned down lol, but it would be neat to know if they'd match my Blue card's limit of $5k, I wouldn't ever really need a limit higher than that I don't imagine.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: creditnewbie
Credit Expert (100+ Posts)
Posted: Fri Mar 03, 2006 7:19 am
AMEX charge cards are a little tricky. In general, the limit is double the highest payment you make--given you paid it in full.However, if the rep tests the card with an amount that gets declined, it doesn't mean that you can't charge that amount in several transactions. I got the platinum card recently and asked them about the limit because I'm going to europe and I'm planning on using the card exclusively. The rep tested $45,000 and she said that because she tested one big charge, it didn't go through, but she was able to make 2 charges that added up to the amount. So probably, you can make one large purchase, but they will have the merchant call the center so that AMEX verifies your identity and banking information. Or if you make several transactions that add up to a large sum, they will end up freezing your account until they verify your ability to pay back. It all depends on your history with them.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: mouse
SENIOR MEMBER (Member for 2 yrs.+)
Posted: Fri Mar 03, 2006 8:06 am
I ONLY HAVE AMEX "CREDIT" CARDS WITH STATED CREDIT LIMITS
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: credithelp
Credit Expert (100+ Posts)
Posted: Fri Mar 03, 2006 9:36 am
The bad thing about an exposure limit is that it is attached to many factors. If you owe alot on other credit cards(especially amex cards) they will lower your exposure limit. If they see something negative in the credit report they will lower it. You can never rely completely on a card that has an exposure limit since you find out the hard way when it has been reached.
Since i now owe some on other credit cards and have high lines with amex , they lowered my exposure limit to 1k.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
posted by CardRatings.com at 11:39 AM
2 Comments:
I am a 12 year customer of the gold card. I have a perfect payment history and have ever had a problem…. until this year. AMEX has started a new policy of averaging your usage for the last 3 months, evaluating your credit score on a monthly basis (a score by the way you cannot obtain without a fee), and then setting limits on your spending. This is whether you have a perfect payment history or not. By doing this, they limit their exposure to risk in the declining economy (in their opinion), however they also alienate perfectly good customers that have been only sporadically using the card and may have recently incurred more debt (like anew car or new house). This is a ridiculous policy and the idiot that came up with it should be fired. Not to mention, I hope someone in the Govt realizes the unfair practice of using a score to decline credit, a score which the consumer has to pay to see. I have seen my “no limits” spending feature dropped from “unlimited” to $21K, to $8K. This is because when they pissed me off the first time by changing from “no-limit” to a $21K limit, I stopped using the card for business travel. Then, as I did use it sporadically, they lowered the limit again because my “average” usage was low. How stupid is that? My recommendation, pass the word along and have everyone you speak to complain. Call them and complain, write them and complain, email them and complain…and…stop using the card! If their usage drops and their complaints rise….someone in AMEX Corporate will get wind of it and hopefully fire the idiot that stated the new policy.
I am a 12 year customer of the gold card. I have a perfect payment history and have ever had a problem…. until this year. AMEX has started a new policy of averaging your usage for the last 3 months, evaluating your credit score on a monthly basis (a score by the way you cannot obtain without a fee), and then setting limits on your spending. This is whether you have a perfect payment history or not. By doing this, they limit their exposure to risk in the declining economy (in their opinion), however they also alienate perfectly good customers that have been only sporadically using the card and may have recently incurred more debt (like anew car or new house). This is a ridiculous policy and the idiot that came up with it should be fired. Not to mention, I hope someone in the Govt realizes the unfair practice of using a score to decline credit, a score which the consumer has to pay to see. I have seen my “no limits” spending feature dropped from “unlimited” to $21K, to $8K. This is because when they pissed me off the first time by changing from “no-limit” to a $21K limit, I stopped using the card for business travel. Then, as I did use it sporadically, they lowered the limit again because my “average” usage was low. How stupid is that? My recommendation, pass the word along and have everyone you speak to complain. Call them and complain, write them and complain, email them and complain…and…stop using the card! If their usage drops and their complaints rise….someone in AMEX Corporate will get wind of it and hopefully fire the idiot that stated the new policy.
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