AMEX credit limit increase offer: Credit check??

9 replies

MaximillianW

Qantas - Qantas Frequent Flyer

Member since 14 Dec 2016

Total posts 29

Hi,


I've been offered a credit limit increase by AMEX by email and when l log into my account, does they carry out a credit check if l accept even if they are offering an increase to me? I don't need a credit limit increase at all, with my balance almost at zero, but having a higher limit would improve my credit score by having good credit utilization.

l'd appreciate any advice/experience people have had.

mviy

Member since 05 May 2016

Total posts 281

Yes they would run a credit check as you would be applying for more credit. It doesn't matter that they offered it to you.


They'll want to see if your credit file matches what you're telling them is on it and decide whether they think you can afford the higher limit.

MaximillianW

Qantas - Qantas Frequent Flyer

Member since 14 Dec 2016

Total posts 29

Thanks for that, yeah i'll leave it then. Better to go for a points bonus with another card if l recieve a credit check.

John Phelan

Qantas - Qantas Frequent Flyer

Member since 28 Oct 2011

Total posts 210

If you've been invited, and you log on to the Amex site, then you are asked only a couple of questions, including gross annual income. Upon putting that info in and hitting "submit", you get an immediate answer.


This surprised me, as I expected I would get some sort of 'holding' response, saying they would review my answers and get back to me in 24 hours (or whatever).


So it sounds like, provided your income meets the threshold, you are automatically approved without any further credit check. At least that's how it played out for me.


Last editedby John Phelan at May 15, 2018, 06:37 PM.

mviy

Member since 05 May 2016

Total posts 281

I suspect that will change with CCR though.

daniesut

Qantas - Qantas Frequent Flyer

Member since 15 Sep 2016

Total posts 42

Credit card providers generally don't do a supplementary credit worthiness assessment when offering a credit increase, its based on your spending and payment profiles, not your credit worthiness


if you spend more that 50% of your credit in any given month over the course of a 12 month period, this triggers your account for a potential increase, if your payments profile then also triggers full payment of your balance in at least 1 month, this this triggers an increase proposal


Amex would not offer you to start with if they believed your credit was under the ~680 Equifax "good rating"...but they cant to a check with out your permission.....so its not done, and they rely on you inputting income details to satisfy their credit assessment criteria - if you go and ask for an increase this is different, as your account is not already flagged for eligibility for an increase - then you may have a credit assessment done - but if the provider offers, they don't do a check


Also, on the original comment, higher credit gives you a better score - that's not really the case, when your credit is assessed, "bad" credit such as credit cards, as they are unsecured credit actually brings your score down, as apose to a home or car loan, that is secured against an asset...so the more credit you have on cards, it will negatively impact your score......

Last editedby daniesut at May 16, 2018, 09:54 AM.

SpeedbirdUK

British Airways - Executive Club

Member since 18 May 2018

Total posts 2

Hi,

I've been offered a credit limit increase by AMEX by email and when l log into my account, does they carry out a credit check if l accept even if they are offering an increase to me? I don't need a credit limit increase at all, with my balance almost at zero, but having a higher limit would improve my credit score by having good credit utilization.

l'd appreciate any advice/experience people have had.

If AMEX has said you can have a limit increase. If they have told you the new credit limit will be, then they are using Behavioural Scoring based on the information they receive from the Credit Reference Agencies. Even if they haven't told you what the new limit will be, they

still may be using Behavioural Scoring.
To get an answer that is 100% correct ask
the Customer Agents.
From your point of view, the Credit
Reference Agencies do tell other lenders what your highest credit limit is, and how long you have had it. Which from your
point of view will be good as long as you
can control yourself not to borrow if you can't afford the repayments.
You can always ask the credit limit to be decreased, which won't affect your Credit
File.

Nizar

Qantas - Qantas Frequent Flyer

Member since 09 Jun 2017

Total posts 2

You can always ask the credit limit to be decreased, which won't affect your Credit
File.

Does asking to have your credit limit not affect your credit file ?

I would have thought it would affect it in a favourable way ?


david_legge2786

Qantas Frequent Flyer

Member since 13 Mar 2015

Total posts 4

Good morning,

Sorry - I am a bit late on this one. I had an offer to increase my limit from $2100 up to $4100. I am subscribed to Credit Savvy and Veda. I was a little suspicious and I called and spoke to 3 different people and made sure that the calls were recorded. They advised that no they don't do a credit check on the offers, but I saw on VEDA they did an soft enquiry a few weeks before I got the offer. When logging into VEDA and then looking at my credit reports on the left side there is a link which says other, click on that and then go into file access. I have a premium subscription with VEDA so I am not sure if the links ect are the same without this. There hasn't been another enquiry by AMEX since I was approved for the card back in October 2017.

Hope this helps.

andyf

Virgin Australia - Velocity Rewards

Member since 07 Dec 2014

Total posts 46

I guess it depends on the bank. I used to work for a rather large multinational bank with retail presence in Australia, in their retail credit division. Policy was to do credit checks on limit increases; even if we made the offer - although, that offer was typically via mail, not online.


Having said that, we did have automated application system for new online credit applications, which could pull credit files from Veda automatically and do the check without human intervention ... so no reason why this can't be done in real time with online increases.

And yes, too many inquiries does impact your credit score - or it did at the time a few years ago when I worked in this area. Whether new credit reporting requirements change that, not sure.

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