American Express FR

[Anonymous]

Just got off the phone with a nice gentleman from the American Express Financial Review Department. He asked me to verify my income amounts and sources. I was completely honest with him and told him that most of the income I reported comes from scholarships, rather than employment. He didn't bat an eye and seemed rather surprised that I am employed at all while in school. He said American Express usually verifies income through tax returns and asked if I had a 2011 tax return. I told him I didn't, since last year I was a minor with no job. He said that's alright, and, given the circumstances, the FR dept would be willing to take 6 months of bank statements instead. Will submit the statements later today and let you know the results.

[youngandcreditwrthy]

It's not like my mom doesn't know that. I think I'm doing pretty well for my age... Ive never missed a credit card payment and take my finances very seriously. Every CSR I speak with when apping often asks me if I'd like to do hhi...
My mother and I would be willing to supply tax returns if I were to be FR'ed.
Afaik, it is up to you, the applicant, to decide what income you can use- personal or hhi. Of course, a creditor had their own standards of usable income as well.

[youngandcreditwrthy]

Sounds good for you...:-)

[jsickz32]

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@youngandcreditwrthy wrote:
It's not like my mom doesn't know that. I think I'm doing pretty well for my age... Ive never missed a credit card payment and take my finances very seriously. Every CSR I speak with when apping often asks me if I'd like to do hhi...
My mother and I would be willing to supply tax returns if I were to be FR'ed.
Afaik, it is up to you, the applicant, to decide what income you can use- personal or hhi. Of course, a creditor had their own standards of usable income as well.

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if you dont mind telling me what banks CSR has ask tell if you could do hhi?

[youngandcreditwrthy]

I prefer not to disclose that info., but it's worth noting that the CARD Act prohibits creditors from explicitly asking hhi; it does not prohibit applicants from using hhi. Check the paragraph of Section 226.51(a).

It was more or less, the bank telling me that it was up to me, which seems lawful given that section of the CARD Act.

[cashnocredit]

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@youngandcreditwrthy wrote:
I prefer not to disclose that info., but it's worth noting that the CARD Act prohibits creditors from explicitly asking hhi; it does not prohibit applicants from using hhi. Check the paragraph of Section 226.51(a).

It was more or less, the bank telling me that it was up to me, which seems lawful given that section of the CARD Act.

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CFPB has the regulatory responsibility of defining income and assets re the CARD act. They have not yet finalized the reg. but all of the proposals exclude HHI outside of spouses over 21.  Looks like the CSR is skating on thin ice if they suggest anyone use hhi.

http://counterriskgroup.com/nbbulletin/proposed-changes-to-reg-z-on-household-income-rules/

The Bureau of Consumer Financial Protection (CFPB) has issued a proposed rule to amend Regulation Z to permit lenders to consider “household income” for credit card applicants who are not able to satisfy the requirement that they “independently” have the ability to repay. The applicant must be 21 or older and have a reasonable expectation of access to the household income. The proposed changes are primarily directed towards non-working spouses and partners who are being disenfranchised under the current Regulation Z requirements.

The proposed rule would also amend the Official Staff Commentary to Regulation Z to provide examples that demonstrate when household income would be permissible to consider and when it would not be permissible to consider as a source of repayment for a credit card.

Credit card applicants under the age of 21 would still need to either provide financial information that substantiates their independent ability to repay or provide a cosigner, guarantor or joint applicant who has the requisite ability to repay.

[manyquestions]

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@youngandcreditwrthy wrote:
I prefer not to disclose that info., but it's worth noting that the CARD Act prohibits creditors from explicitly asking hhi; it does not prohibit applicants from using hhi. Check the paragraph of Section 226.51(a).

It was more or less, the bank telling me that it was up to me, which seems lawful given that section of the CARD Act.

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I know AMEX asks for personal income when doing a  FR. 

[FrugalRican]

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@youngandcreditwrthy wrote:
 Every CSR I speak with when apping often asks me if I'd like to do hhi...

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Every?

Every single one? Maybe it's semantics, hyperbole, or maybe I bat my eyes at absolutes.

I'm not so sure about that. And if they are, they are idiots looking for the referral.

I'd never put myself in a position to "bloat" my numbers just for a credit card or any other financial product.

If it's just you on that card/product and they FR you and ask solely for your returns, then what? HHI makes sense if you're applying as MFJ, which, I hope to heaven is not what you are doing with your mother.

[youngandcreditwrthy]

Well, thanks for the info. I'll def'ly consider that in the future when I am applying for credit :-)

[ryanbush]

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@youngandcreditwrthy wrote:
It's not like my mom doesn't know that. I think I'm doing pretty well for my age... Ive never missed a credit card payment and take my finances very seriously. Every CSR I speak with when apping often asks me if I'd like to do hhi...
My mother and I would be willing to supply tax returns if I were to be FR'ed.
Afaik, it is up to you, the applicant, to decide what income you can use- personal or hhi. Of course, a creditor had their own standards of usable income as well.

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They're not going to want nor care about your moms tax returns if you FRd...  you're moms tax returns or income are pretty irrevelent unless it's a joint account.

I wish it worked that way, both my parents make over 500k a year, if i could use their income i'm sure i would get some crazy limits