American Express is lowering the available credit for the Blue Card. Any AMEX card that acts as a credit card is being treated as a credit card.  Three clients this week have cried over a lower credit limit.

 

First home equity loans now credit cards.  As Suze told us a hundred times this month, the credit card companies are reducing the amount of money you can spend before you spend it.  In order to cut losses they are cutting your available credit. 

 

“Let’s save them from themselves, Lord!”

 

Amex is joining the ranks of the credit card for the common man.  However, while lowering your available credit limit, they are lowering your FICO score too. When you owe as much as you are allowed to use, that is looked at unkindly by the FICO score Gods.  You must keep this ratio under 50% or your credit score will be lowered. 

 

I was told today that people will have to just understand.  I was also told today that the lenders will just have to understand.  Then I was told (today) that the credit bureaus will just have to understand and make some adjustments to the scoring system.

 

What don’t you understand? 

Dale Siegel

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