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Established Member
JohnB222
Posts: 41
Registered: ‎09-05-2011
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Re: American Express FR

FIRST AND FOREMOST I AM NOT A CPA/TAX PROFESSIONAL!!!!!

 

Based on the application itself:

 

Include income from all sources including employment, retirement, investments, rental properties, etc. Alimony, child support, or separate maintenance need not be revealed if you do not wish to rely upon it.

 

In my opinion, scholarships could be considered...although you would have a hard time proving scholarship income since you did not file last year.  Scholarships can be considered income, in fact most furnish you a 1098-T form for tax purposes at the end of the year.  The only real official proof of income that can be considered by a financial institution are IRS forms.

 

Now as far as my recommendation!  Explain to them your situation, see what they say.  If they say they do not recognize scholorships (which they should) or if they can't do anything since you didn't file last year (more probable) then I'd HIGHLY SUGGEST looking into obtaining a co-signer.  If you fail this FR, you have a HIGH chance of being blacklisted never being able to obtain an American Express card for quite some time (or possibly even your entire life).  My two cents.  Good luck :smileyhappy:

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Valued Contributor
navigatethis12
Posts: 1,954
Registered: ‎01-24-2012
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Re: American Express FR


ficosphere wrote:

The scholarship was for tuition, room, board, books, and a small amount for personal expenses.

 

Also, if they do close the account, will I lose 2012 backdating, since the card was never activated?


The amount for personal expenses may be the only part they would accept. The money you get for everything else really can not be used for repayment, and I am not sure why other lenders say scholarships are acceptable. Again, I am no expert and do not want to scare you. Only they know what they will or will not accept. For all we know they may just want a bank statement.

 

I am unsure about the backdating, but if they close it because you have no income it would say closed by grantor. Of course, if they say what you have is not good enough, you can just cancel the card on your own. I very much dislike that they do this after they approve people, but oh well.

Moderator Emeritus
llecs
Posts: 32,869
Registered: ‎08-04-2007
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Re: American Express FR

If closed, it will say "closed by credit grantor" but that's not a bad thing.

Established Contributor
migliogiorni
Posts: 657
Registered: ‎06-27-2012
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Re: American Express FR

What is it with all these FR's from Amex lately.  Never hear a peep about other lenders doing FR's, but amex does it religously. Amex is ruthless and know what your signing up for folks.

 

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Moderator
Revelate
Posts: 9,731
Registered: ‎12-30-2011
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Re: American Express FR


migliogiorni wrote:

What is it with all these FR's from Amex lately.  Never hear a peep about other lenders doing FR's, but amex does it religously. Amex is ruthless and know what your signing up for folks.

 


Close to same incidence rate as AA's from other lenders, simply Amex is admittedly more intrusive about it.

 

It's a legimate question for Amex to be asking in this case for some sort of income verification with an 18 year old.  I mean no offense by that statement, it's just a reality given the current legal issues regarding issuing cards to young adults, and generally most freshman don't have much in the way of income during their first semester.

 

FWIW pretty much all the FR's I've seen that have had details posted about it were absolutely legit (people blatantly lying on their application); this is one of the few that I've seen where the income in my mind is plausible, but Amex may have a different definition of it.  It'll be interesting to see what documents they ask for in this scenario, it could be as simple as providing two paystubs and the scholarship letter... and that's right in line with any other lender's inquiry for income verification, without the full monty FR which is decidedly less fun.

 

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Valued Contributor
navigatethis12
Posts: 1,954
Registered: ‎01-24-2012
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Re: American Express FR


Revelate wrote

 


 

It's a legimate question for Amex to be asking in this case for some sort of income verification with an 18 year old.

 


I had not thought about that. Under the new laws, anyone under 21 is supposed to provide income verification before obtaining a credit card. If you have a co-signer I do not believe that you need to provide anything. So any other lender would probably require the same thing .

Senior Contributor
youngandcreditwrthy
Posts: 6,242
Registered: ‎08-16-2012
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Re: American Express FR

This really sucks.... You prob are going to get it canceled on you... The auto system prob approved you and they caught it. It's prob because you are <21 that they did this. So unless you can provide substantial income for your age...or get a cosigner, don't count on Amex. I hate that this happens, but Amex seema legit in some cya action :-/ Best of luck !!
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Revelate
Posts: 9,731
Registered: ‎12-30-2011
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Re: American Express FR


youngandcreditwrthy wrote:
This really sucks.... You prob are going to get it canceled on you... The auto system prob approved you and they caught it. It's prob because you are <21 that they did this. So unless you can provide substantial income for your age...or get a cosigner, don't count on Amex. I hate that this happens, but Amex seema legit in some cya action :-/ Best of luck !!

Nah, when Amex airstruck the Zync, presumably they didn't want to leave qualified students out in the cold.  Much like Chase does with their $500 Freedom even though it's not a student card; also, Amex can stick whatever internal limit they wish on a card.   From that standpoint since they're largely profitable on transactions, I don't know why they wouldn't offer some charge card for students.  Now that I think of it, I think it's a mistake for Amex not to be marketing to them as they desperately need a foothold in the younger generations and the college educated are a good place to start, but maybe there's something I'm not seeing.

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Established Contributor
cashnocredit
Posts: 1,030
Registered: ‎07-18-2009
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Re: American Express FR


navigatethis12 wrote:

Revelate wrote

 


 

It's a legimate question for Amex to be asking in this case for some sort of income verification with an 18 year old.

 


I had not thought about that. Under the new laws, anyone under 21 is supposed to provide income verification before obtaining a credit card. If you have a co-signer I do not believe that you need to provide anything. So any other lender would probably require the same thing .


It's widely believed that if you are under 21 you have to provide income verification. In fact you only have to provide a written statement of personal income and/or assets that indicate an ability to make minimum payments on the card. Check out the CFPB's rulemaking on this. It's not nearly as restrictive as one might think. They are also addressing the issue of non-working spouses and increasing the flexibility to encompass funds normally availalbe. For instance, joint checking where the paychecks of the working spouse are deposited into the joint account.

 

 

 

I have reestablished credit over the last couple years
so my moniker is, well, rather out of date.

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Member
ficosphere
Posts: 9
Registered: ‎10-22-2012
0

Re: American Express FR

[ Edited ]
Under the new laws, anyone under 21 is supposed to provide income verification before obtaining a credit card. If you have a co-signer I do not believe that you need to provide anything. So any other lender would probably require the same thing .

 

That's interesting, I did not know that. Chase never asked for any documentation whatsoever, but perhaps that's because I already had a checking account with them. Citi was a bit of a pain: they needed a signed SSA-89 form, a copy of my social security card, a copy of my driver's license, and proof that I would be enrolling in college in the fall. But neither lender has ever asked for financial documentation or tax returns. And Citi asked for the identification papers before they approved me, not after the fact. Perhaps each lender interprets the CARD Act differently.


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