My Credit Limit went down from $7,000 to $4,000 due to increased credit utilization

Why did AMEX® reduce my Credit limit from $7000 to $4000?

This is something that happened to me last month and I want to share it here with you, as you wouldn’t have to face anything like this.

So, this is exactly what happened. I have an AMEX® AIRMILES Platinum Credit Card with a Credit limit of $7000.

Last month I got a letter saying that I will be losing $3000 from my Credit Limit and it will be $4000 from then.

You know, it is not really a great news to hear. But, I still knew the reason for that, even before I go further on the letter.

Increased credit utilization

My Credit Utilization skyrocket and reached 100%

The last couple of months were so hectic for me in terms of lots of personal pieces of stuff around me. And it cost me a lot of money too.

Since I left my job in August, I’ve been keep spending for all of my expenses with AMEX® Credit Card.

I used well close to $4000 with my credit card in that span. AMEX® noticed this sudden increase in my utilization and reduced it to the best they can.

Do you know what happened next?

  • Credit Score drastically went down.
  • Credit card utilization reached somewhere close to 100%.
  • It may even show up on my Credit Report

In Conclusion

In my case, I had no other options as I was going through really bad situations.

But, you can avoid such situations in your life.

I made the mistake and I learned from it but it is going to cost me a lot.

It is better you should learn from my mistake, instead of making one yourself.

Every time when you go over 35% of your Credit limit, remember what happened to me.

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