Via iStockphoto / @joeclark207 TikTok
A man shares how his credit limit for his American Express Platinum card was cut
One of American Express‘ biggest perks is its limitless Platinum card. The problem is, one TikToker discovered that his AmEx credit line got unexpectedly cut—and he isn’t the only one.
With its highbrow reputation, American Express cards have recently gone viral for things like impressing women and being misused by non-cardholders. But Joe Clark’s (@joeclark207) TikTok begs one question: Is AmEx in trouble?
Why Is American Express Cutting Lines?
Clark begins the video, which has 1.1 million views, by saying, “If you want to know how bad the economy is getting and you have an American Express card, you’ll know real soon.”
He continued, “Because folks, American Express has just came in and cut credit lines like you wouldn’t believe.”
Clark explains that he is a 44-year user of AmEx and, by all accounts, is an ideal customer. He says he always paid his bills on time and has more income than ever. However, he claims he is unable to use his AmEx card the way he used to because the company cut it.
In the past, he says he could have spent $100,000, and they wouldn’t say anything. However, when he tried to spend $5,000, he got a call saying they were cutting his credit limit. When he asked why, he said the company told him it was “systemic” because of the credit market.
“It’s because people aren’t paying their bills, that’s what’s going on,” he theorized. “I’ve always paid mine. I have good credit. Never late.”
Yet, he claims this is happening “over and over again.”
“So folks, American Express is at it, and I’m sure other credit card companies are, but the loyalty to American Express for me is over,” he concluded. “So folks, the economy is in the tank, and American Express is cutting their losses.”
BroBible reached out to Clark via TikTok message and American Express via email.
He’s Not Alone
One commenter described a similar issue, writing, “Black card holder for 20 years, 820 rating, they just cut mine as well. AmEx reducing exposure to the most secure lines is disturbing. They must judge risk so high they are willing to risk losing their best customers.”
“I had no limit,” another shared. “Now it’s $10,000.”
While a third said, “I’ve never been late or missed a payment on any of my credit cards in 27 years. All of my lines have been cut in half AND they raised my interest rates from 17% to 30%!!!”
Other commenters speculated over the reason for this change.
“Been an AmEx member for 36 years,” a fourth shared. “When this happens, it means the economy is in free fall, not just a recession. Things are far worse than what’s being reported.”
“They are derisking,” a fifth suggested. “They got hit hard in 2008-2009.”
Then a sixth added, “Credit is what is keeping half of the remaining middle class afloat. The entire American economy damn near is built on credit……this is gonna be an interesting ride.”
Is It A Recession Indicator?
Clark isn’t the only TikToker to highlight this change. Business, tech, and finance creator Jahbari Taylor (@jahbaritaylor) also made a video about the issue. In his clip, he claims that one reason AmEx might be doing this is that they see signs of an “impending recession.”
He claims that AmEx has a lot of data. In particular, it has a lot of consumer data on high-income earners. So, if it starts limiting customers, he claims that this could be because its data suggests that consumers are paying late and/or not in full. In turn, it’s arguable that AmEx is doing this so that it is not at risk of people not paying their card balances back.