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Re: American Express FR

If you tell em you dont want it and to close it, they may not even ever report it!!

I say this because.. It has been almost a month since I opened my account, with one statement having gone through, and it is STILL NOT reporting lol :-X
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Re: American Express FR

I cannot for the life of me understand why people put financial aid and scholarships as income on loan and CC applications. Unless the application specifically stipulates that those monies can be considered, you should assume the lender wants to know what your taxable, earned income is. Of course, you are still welcome to try to sneak it by, but as this OP learned, it can lead to FR and even closure down the road. I'm not sure it's worth the risk, but to each his own :smileyhappy:

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Re: American Express FR

I can't say for sure whether I have or haven't heard of it happening, but it just makes sense to me - especially when you're Amex.  If you fail a FR, for all practical purposes, it's because you were lying on an application.  I could totally see Amex deciding they don't want customers who have lied to them in the past to be borrowing money from them in the future.

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Re: American Express FR


CreditCrusader wrote:

I cannot for the life of me understand why people put financial aid and scholarships as income on loan and CC applications. Unless the application specifically stipulates that those monies can be considered, you should assume the lender wants to know what your taxable, earned income is. Of course, you are still welcome to try to sneak it by, but as this OP learned, it can lead to FR and even closure down the road. I'm not sure it's worth the risk, but to each his own :smileyhappy:


Even worse when people put student loans and "gifts" from parents they receive each month.   I don't think allowances count as income, but to each his own. A lot of forum members support the stance that allowances are income. 


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Re: American Express FR

I think allowances can be considered income, just not student loans. I always include my mom's income in my hhi, but that's because she has actually helped me pay my credit card bills in the past when Ive been in a bind. I'm also 23 with a great job and a full time student and have paid most of my own bills since I've been 20 or so. But if your only source of income is your parents, that seems a little unstable to a creditor, I'm sure. Plus Amex is just not the type of creditor that hands cards out to 18 year olds. I've had to build my credit for FIVE YEARS to get my Amex BCE!!! Lol We can fight all day long about gov't and regulation, bit as many ops post, Amex is acting reasonably due to requirements by the CARD Act (I think). And for the better, you should be willing to show proof of income if you want a credit card; it is a loan afterall...similar to any car or home loan, although not secured. Sorry for the rant... Hope everyone is doing wellll :-)
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Re: American Express FR


CreditCrusader wrote:

I cannot for the life of me understand why people put financial aid and scholarships as income on loan and CC applications. Unless the application specifically stipulates that those monies can be considered, you should assume the lender wants to know what your taxable, earned income is. Of course, you are still welcome to try to sneak it by, but as this OP learned, it can lead to FR and even closure down the road. I'm not sure it's worth the risk, but to each his own :smileyhappy:


Me either. I really do not know why any lenders would say it is okay. It is not really income since it is only used for tuition and other school necessities. Ficosphere did say they have a little extra left over, but did not say how much that equals to. Anyway, when I spoke to American Express about this, they said that as long as a person can prove some type of income they will not close the card. I am sure they would not let someone who only makes 1000 keep a card, but that is what they told me.

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Re: American Express FR


youngandcreditwrthy wrote:
I think allowances can be considered income, just not student loans. I always include my mom's income in my hhi, but that's because she has actually helped me pay my credit card bills in the past when Ive been in a bind. I'm also 23 with a great job and a full time student and have paid most of my own bills since I've been 20 or so. But if your only source of income is your parents, that seems a little unstable to a creditor, I'm sure. Plus Amex is just not the type of creditor that hands cards out to 18 year olds. I've had to build my credit for FIVE YEARS to get my Amex BCE!!! Lol We can fight all day long about gov't and regulation, bit as many ops post, Amex is acting reasonably due to requirements by the CARD Act (I think). And for the better, you should be willing to show proof of income if you want a credit card; it is a loan afterall...similar to any car or home loan, although not secured. Sorry for the rant... Hope everyone is doing wellll :-)

I don't think lenders are allowed to consider HHI anymore...

I know things happen when you sort of get in a bind... I mean, my parents have helped me out in a bind, but I don't really count that as income, as they never should have had to do that in the first place...

 

This is really a philosophical / family value question...  so there is really no wrong or right answer.  Obviously a lot of people count this as income, and that's fine but I look at it as sort of a once in a while thing, certainly not something you can depend on or plan on. Definately not something to expect that you will receive.

 


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Re: American Express FR

The CARD act assigned to the CFPB the job of coming up with clear regulatory language as to what income and assets used for credit decisions should be. Household income is out except when it comes to non-working spouses over the age of 21. In these cases income deposited to a joint account can be considered amongst a few other similar situations. This is not the case for children or roommates. For those under 21 income has to be individual. The CFPB is working on model application wording that could be used for both situations as they anticipate credit card issuers will not want seperate app forms for those under 21.  It's a work in progress. Googling CFPB together with some of the specific CARD act language can turn up some of this and I'm going by what I found a week or so ago. Unfortunately I don't have the link.


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Re: American Express FR

[ Edited ]

Elcid89 wrote:

I'd have to agree. Even if a scholarship provided discretionary income (most just pay expenses), it's still income of a tertiary nature and they'll balk at it.

 

Trying to claim expenses paid on your behalf (like tuition, etc) as income is, not to put too fine a point on it, fraud.

 

Close the account before they close it for you. It'll serve you better in the long run to take that option, IMO.


Hah, compared to some of the things I see on this forum, this is definitely in the category of honest mistake rather than outright fraud.  

 

Personally I'd just call them, and if they wanted proof of income and wanted to play 20 questions, I'd just fall on my sword and explain the situation and when they told me the scholarship income is out, simply apologize profusely (say it, say it again, say it like you mean it...) and give them the actual number from my student job.  

 

This isn't the end of the world, but while I agree don't activate the card until you talk to someone, I wouldn't just close the account in this case.   Let them make that decision after a conversation with them, as you're going to have to go through the FR whenever you do try for another Amex... and they may decide to help you out anyway.  Amex *has* to fix their future clientele, there's no choice or they will fade to irrelevance in 20 years... the relationship may be mutually beneficial, at least give them the chance to say yes.

 

Won't be "blacklisted" either way, but you are going to be stuck behind the 8-ball to get that paperwork in if as others suggest you "fail" it in any way (and just sticking your head in the sand is failing in this instance).  I'd just do it now and explain what's up, rather than closing it and not telling my story in this case.  Mistake yes, intention to defraud, no not really.  At least it's plausible in comparison to others who just outright lie on their applications :smileywink:.

 

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Re: American Express FR

[ Edited ]

I will call them Friday and explain the situation. Thanks everyone for your advice. It has been really helpful!

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