@iCoop wrote:For those that find the process intrusive, you do realize that you don't have to borrow money from American Express. There are hundreds of other credit cards available for personal and business needs that are for the most part accepted at more places than AmEx. When I bought a house they required damn near everything that took place in my life over the last two - ten years. When I bought a car they wanted quite a bit of information too. So I don't see it out of character for American Express to perform a financial review of any account, especially when the funds that they provide are not backed up by collateral of any sort. They are taking your word at face value that you will continue to pay them on time, each month, for as long as you have your account. Now that I think about it, they should require just as much if not more documentation than home or auto lenders as these companies at least have something to go after other than causing a blemish on your credit history (which some people don't care about when times get rough).
If you want to use their money, then you have to play by their rules. It may be an inconvenience but a lot of these inconveniences are meant to protect their interests and at times, yours as well. It would be a lot more inconvenient for millions of consumers/businesses if credit cards weren't available to spend money that most people don't have on hand.
I guess Amex could require all that documentation. I'm pretty sure if they did they would only have crap customers left because who would want to go through all that hassle for a credit card unless the person was desperate for credit. Chase, Citi, Discover, Cap 1 and other lenders would be more than willing to supply cards to the amex customer base. Being realistic Amex needs customers more than customers need amex. Who really needs an amex card (or any particular lender's card)? Its not essential and there are plenty of other options. Amex makes its profit from issuing cards and having people going out and spending on them. If they became overbearing in demanding documentation at the time of the apps people would just go to chase or citi etc. Not to mention the extra time and money it would cost amex to review all those documents. I'm sure Amex would prefer to give out more credit than it is now, but with the legislation that was passed they are being forced to investigate a person's credit worthiness even more.
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@red259 wrote:
@iCoop wrote:For those that find the process intrusive, you do realize that you don't have to borrow money from American Express. There are hundreds of other credit cards available for personal and business needs that are for the most part accepted at more places than AmEx. When I bought a house they required damn near everything that took place in my life over the last two - ten years. When I bought a car they wanted quite a bit of information too. So I don't see it out of character for American Express to perform a financial review of any account, especially when the funds that they provide are not backed up by collateral of any sort. They are taking your word at face value that you will continue to pay them on time, each month, for as long as you have your account. Now that I think about it, they should require just as much if not more documentation than home or auto lenders as these companies at least have something to go after other than causing a blemish on your credit history (which some people don't care about when times get rough).
If you want to use their money, then you have to play by their rules. It may be an inconvenience but a lot of these inconveniences are meant to protect their interests and at times, yours as well. It would be a lot more inconvenient for millions of consumers/businesses if credit cards weren't available to spend money that most people don't have on hand.
I guess Amex could require all that documentation. I'm pretty sure if they did they would only have crap customers left because who would want to go through all that hassle for a credit card unless the person was desperate for credit. Chase, Citi, Discover, Cap 1 and other lenders would be more than willing to supply cards to the amex customer base. Being realistic Amex needs customers more than customers need amex. Who really needs an amex card (or any particular lender's card)? Its not essential and there are plenty of other options. Amex makes its profit from issuing cards and having people going out and spending on them. If they became overbearing in demanding documentation at the time of the apps people would just go to chase or citi etc. Not to mention the extra time and money it would cost amex to review all those documents. I'm sure Amex would prefer to give out more credit than it is now, but with the legislation that was passed they are being forced to investigate a person's credit worthiness even more.
In the grand scheme of things, a mortgage/auto loan vs credit limit can be quite a bit different. Most folks getting mortages or cars are looking at borrowing $10k plus, and those funds are immediately paid out with the expectation of it being paid back in installments. While someone can get a $10k credit limit, it likely won't be utilized all at once. And they (CC companies) have the right to decline a transaction if it's too high or unusual, mortages and auto loans don't work like that. CC's check credit reports. If they give out high/risky CL's, then request more information during application process or CL increase request. I think shutting down someone's card entirely because it's an unusual transaction isn't (always) necessary. It is their right to do so, of course, and I understand that there are times when it's beneficial for them but it does pose an inconvenience to the consumer. When we don't think it's a 'big deal' for them to obtain so much financial information for something that can be a miniscule thing (a decline during a lunch, for example), we're inviting them to do more in the long run. That's where my concern is. They can already do routine SPs, now it's requesting tax returns, next it'll be access to periodically check our bank accounts to see where our money is going. If you didn't think I could handle the credit, don't issue me the card or don't give me such a high limit. And if you see a concern, be a little more flexible because (as some have said) I don't have to use your card. I think that verifying income before issuing someone a card could be an option or temporarily reducing a CL while requesting information if something seems unusual until it's resolved. But completely freezing cards and saying you have to provide this or you don't use our card can seem (or feel) a bit controlling and sometimes unnecessary. I know they have tiers for high risk, low risk customers, why not have the process be different for each tier? Freeze high risk cards and just request info and set a deadline for low risk cardholders. Maybe they do this already, who knows. Is it their money and do they have the right to do it, yes, absolutely. But I think there can be better ways to go about it. If it happened to me, I'd provide the information, but depending on the reason why (the AU thing I absoutely get, someone they haven't checked out is spending more money) I'd let them know that this could result in my using the card less because I wouldn't know when or if they'd feeze my card again and I have other cards I can use. If I feel like they're not just protecting themselves, but protecting me-the customer- ask away! But if it feels like a them vs. me situation and I haven't given much of a reason for them to do it, it changes my attitude towards them. No qualms with amex, but I am concerned if I don't use my card a lot and then start to use it more frequently, will I have an issue...?
Also think it's important to keep in mind that each situation can change our opinions of things, so I like reading other's opinions on topics like these. Gives perspectives I may not think of myself and makes me more objective if something like this were to happen to me.
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@sean23 wrote:
@red259 wrote:
@iCoop wrote:For those that find the process intrusive, you do realize that you don't have to borrow money from American Express. There are hundreds of other credit cards available for personal and business needs that are for the most part accepted at more places than AmEx. When I bought a house they required damn near everything that took place in my life over the last two - ten years. When I bought a car they wanted quite a bit of information too. So I don't see it out of character for American Express to perform a financial review of any account, especially when the funds that they provide are not backed up by collateral of any sort. They are taking your word at face value that you will continue to pay them on time, each month, for as long as you have your account. Now that I think about it, they should require just as much if not more documentation than home or auto lenders as these companies at least have something to go after other than causing a blemish on your credit history (which some people don't care about when times get rough).
If you want to use their money, then you have to play by their rules. It may be an inconvenience but a lot of these inconveniences are meant to protect their interests and at times, yours as well. It would be a lot more inconvenient for millions of consumers/businesses if credit cards weren't available to spend money that most people don't have on hand.
I guess Amex could require all that documentation. I'm pretty sure if they did they would only have crap customers left because who would want to go through all that hassle for a credit card unless the person was desperate for credit. Chase, Citi, Discover, Cap 1 and other lenders would be more than willing to supply cards to the amex customer base. Being realistic Amex needs customers more than customers need amex. Who really needs an amex card (or any particular lender's card)? Its not essential and there are plenty of other options. Amex makes its profit from issuing cards and having people going out and spending on them. If they became overbearing in demanding documentation at the time of the apps people would just go to chase or citi etc. Not to mention the extra time and money it would cost amex to review all those documents. I'm sure Amex would prefer to give out more credit than it is now, but with the legislation that was passed they are being forced to investigate a person's credit worthiness even more.
The same people that go through all that crap for a mortgage, want to finance a car, or apply for student loans.
Buying a house, car or paying for an education is very different than getting a credit card. In the vast majority of cases when applying for those other catergories you are applying for much much more money than you would get with a credit line. Its apple and oranges.
