American Express CC

[hautemama]

Hello, I had an American Express Credit Card Blue, and they recently closed my account! They stated that my balance was high, and they also looked at my other credit card balances.

What are the chances that I will be able to reapply and get approved? I am looking at their other CC's such as the green or gold cards... Are those easier to get?? What do you suggest...

[smallfry]

Looks like you made their hit list. Why bother?

[Anonymous]

You can probably get approved for Delta, Green or Gold. They seem to be easier than the blue cards. I wouldn't attempt it until whatever they cited they disapproved of on your reports is resolved or at least improved on though. Do you want to replace your Amex with another Amex primarily because there won't be a hit to your average age? If that isn't a consideration and you just want another tradeline for utilization purposes I'd seek a credit union card.

[Anonymous]

Hautemama:

Hey can i ask you how long have you had the blue card? I had the blue card since dec 2008 and i'm hoping i'm not the next victim.

[gsxrgt]

I had a Blue that they closed about six months ago citing basically the same reasons as you. I paid off the rest of my cc's about a month ago. I got the desire to apply for a blue cash for some reason and they approved it.

[RABQUE]

I logged into my American express account today…Only to find out that both of my cards have been cancelled…I had a Delta Sky Miles and America express blue card….I had the Sky Miles since March 2007 and the Blue since August 2008…..Amex is full of it……I am sure my score is going to take a huge hit….I had a $5000 limit on one card and a $4000 on the other….This really sucks!

[Anonymous]

OP, why would you want to reapply with a company who treated you so poorly in the first place. I for one will never again own an Amex product, as I too have recently been amexed for no reason other than their scoring model.

[FocusOnFICO]

It makes sense to look at this in two ways

1. These are business decisions that are being acted upon
2. There are other A1 creditors available that would more than likely enjoy your business

If you take the perspective of filling your credit portfolio with cards you need, for valid reasons, with quality comanies, you will most likely gravitate to the US Banks, etc.

There is usually the emotional playout that causes cancelled customers to reapply to prove to the creditor that their judgement was flawed and that the cardholder should be valued.  This perspective can be dangerous and wasteful for your credit profile.

Please review the threads that highlight quality, conservative, and customer focused companies and evaluate your credit portolio to see the cards/products that you really need and will gain the most value.

Many people who now take the attitude that credit card companies make business decisions--some good, some poor--will be less intimidated into making credit mistakes to prove a point.

Another effective view is that credit cards can and should be used for two purposes--building an excellent credit history/score and reaping the value of rewards.  Carrying debt, owning a card for its prestige, or any other reason really doesn't qualify as very helpful to the individual.

[Anonymous]

Yeah my wifes Amex costco card got closed yesterday...

We haven't been late on a single CC payment in 4 years never late to Amex, only have 2 lates in our entire history which should be removed now due to a goodwill letter. She was around 15% overall CC utilization (if not less) at the time, with a grand total of $4000, according to them that's too high. We did recently pay the balance of ~$2500 off in full, maybe they see her as a risk and figured now's the time to kill her CL.

They are using a bogus comcast collection that's been on her report since last year as reasoning. Despite the fact that her credit rating has increased in the last 60 days to 675  up from 640 according to score watch. Her scores were in the mid 700s prior to this moronic comcast collection. The funny part is they closed her account a good while after her score increased to 675...

I can understand why a collection could give lender pause, I just don't accept the reasoning, I don't but it at all. The collection has been on her report for maybe 9 months and they choose now? Not to mention in their letter with bullet point reasons as to why it was closed they inlcuded the idea that our utilization was too high. Sub 15% is too high? Are you serious?  This statement was also in the letter

"Based on your credit report, our estimation is that your monthly payments are too low in relation to your outstanding debt on all of your credit cards" 

I have exactly two credit cards with balances, both of which get minumum + payments as our Amexcard got as well.  I can't see myself doing business with American Express ever again. Nor Comcast for that matter unless they correct this mistake. The collection in their eyes is seen as legit thus far based on he credit report, it just chaps my behind though when a company feeds me a line a bull S.

-amAxed JJ 

Message Edited by Jayjinx on 06-11-2009 10:11 AM

[Anonymous]

From what I have read, they target people in areas in which the economy and the housing market has taken the biggest hit. They build a risk profile based off that, and among other things in your credit profile to see how likely you or someone in your area might not be able to pay down the road.

Your right it is bogus to treat people so generally based off geographical location alone.