The result of my financial review was that American Express didn’t deem my income level enough to justify the credit limit so they cut it from $7,000 to $1,700. Does this make sense in that I was charging $4k/month and paying off the card in full? Not to me it doesn’t and I’m a little annoyed but I guess I just won’t be able to use the card as much.
The card in question is the Amex Starwood Preferred Guest card which does have a $45 annual fee. The fee is waived the first year and I’m still on the fence about whether to keep the card if it has a credit limit that isn’t feasible for me.
it’s my suggestion that you cancel the card immediately. by lowering your limit so drastically, AmEx has made your debt-to-available-credit ratio near 0. in other words, your balance is now much closer to your limit than before. when your next credit report is run, this will affect your score adversely, and could cause your other credit card companies to consider you a risk – for no legitimate reason.
unless you close the account first, that is.