Amex financial review - help

[enharu]

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@napplegate wrote:
I purchased VRs to meet my minimum spend on my PRG and BCE, that being said I routinely buy $2500 worth per month on my CSP to pay for 2 car payments, rent and utilities. I really don't want to provoke any AA from Amex and in the future intend to pay after the full statement cuts and treat my accouns like 99 percent of the credit using population. There's no wording in the T&C of my CSP that exempts the purchase of reloadable cards and I feel that as long as I'm using them for an actual purpose and not to manufacture spending I should have nothing to worry about. Amex on the other hand...

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its a YMMV situation with MOST credit cards companies. Some just close your cards outright without any explanation. So its really up to anyone whether they want to push their luck and also how much they value having that card itself.

The credit card companies aren't stupid. Up to a certain point if anyone starts costing them money to maintain as a customer rather than making a profit, or at any point in time they feel that they are at risk, they will do something.

There's a lot of bad rep about AMEX's FR, but many fails to look at it objectively and realize that it's mostly those people who have been skirting around the rules and pushing their luck that get into trouble. Those who got FR'ed due to a misunderstanding or had a legitimate reason often have nothing bad happen to the accounts in the end. AND it should be seen as a big benefit that at least AMEX is bothered enough to ask for documents. Other card companies will close your account and tell you to pay whatever you owe in full in 30 days or face action.

[Open123]

Some of my observations and personal experience:

1.  Amex - very intolerant with cashlike purchases and the most proactive of all issuers on ferreting out and stopping this sort of activity, especially on MR and SPG cards.

2.  Chase - moderately intolerant, but not nearly as much as Amex.  They are more intolerant of transfering UR points to another's accounts, or if they suspect you're selling the points.  Will close accounts suddenly with no recourse if and when they detect something they don't like.

3.  Citi and Barclays - the most tolerant on fabricated spending.  They don't seem to care how and what one uses his cards on.

4.  BofA, Discover, etc... - no idea, since no one in his right mind would allocate valuable manufactured spending limits these issuers.

As always, what one can or can't do is also predicated on history, relationship with lender and a variety of other factors.  But, the above is in general.

[UFGuy2006]

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@lg8302ch wrote:
maybe from the amount?

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They can tell from the amounts and the frequency of spend. Thats why they won't immediately close your card... they just FR you to lay the hammer down.

[enharu]

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@UFGuy2006 wrote:

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@lg8302ch wrote:
maybe from the amount?

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They can tell from the amounts and the frequency of spend. Thats why they won't immediately close your card... they just FR you to lay the hammer down.

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plus.....what is there really to buy at CVS that costs over 2k? Even if one smokes 5 packs of cigarettes a day, that doesn't add up to 2k a month.

[boomhower]

I'd just fill it out and hope for the best.  What have we learned?  It doesn't pay off in the long run to lie on credit apps, particular for Amex who is known for FR's!

[L0RDAVENTAD0R]

Has anyone ever been FR'd for being approved for, "too many," of their cards in a 24 hour span ? I just got approved for three straight AMEX's & think anything about it until someone brought that up in my thread.

[enharu]

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@GMCSierraDenali wrote:

Has anyone ever been FR'd for being approved for, "too many," of their cards in a 24 hour span ? I just got approved for three straight AMEX's & think anything about it until someone brought that up in my thread.

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if amex decided to give you 3 cards over such a short period of time, you are obviously doing something right and they trust you. no reason for them to FR you.

[scenery_guy]

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@GMCSierraDenali wrote:

Has anyone ever been FR'd for being approved for, "too many," of their cards in a 24 hour span ? I just got approved for three straight AMEX's & think anything about it until someone brought that up in my thread.

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No man you are cool with them. Spend away and again if they finally take a look at your spending they will know what you are doing for the family where you live. As long as you pay off the charges regularly you should be golden with them as you are one of the types of customers they want. 

[winner88]

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@GMCSierraDenali wrote:

Has anyone ever been FR'd for being approved for, "too many," of their cards in a 24 hour span ? I just got approved for three straight AMEX's & think anything about it until someone brought that up in my thread.

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I got 4 amEX cards in the last 4 months.. would have been 5 except that I elected to withdraw the last application instead of take another EX hard hit.. 

I doubt you have anything to worry about as far as FR's go.

By the way I regularly buy VR on all 4 cards at least 2k worth on each.. ppl actullay make too much out of this, AmEX is more concern about your ability to pay them rather that what you spend the monet on.. As long as your income supports what you spend and your spending pattern is consistent.

[Blurbz]

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@napplegate wrote:
I purchased VRs to meet my minimum spend on my PRG and BCE, that being said I routinely buy $2500 worth per month on my CSP to pay for 2 car payments, rent and utilities. I really don't want to provoke any AA from Amex and in the future intend to pay after the full statement cuts and treat my accouns like 99 percent of the credit using population. There's no wording in the T&C of my CSP that exempts the purchase of reloadable cards and I feel that as long as I'm using them for an actual purpose and not to manufacture spending I should have nothing to worry about. Amex on the other hand...

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Yep, there are definitely instances (paying rent, etc.) where reloads are legitimate spend.  If the card doesn't actually prohibit it (including prohibitions on "cash-like" purchases) then it's absolutely fine.  But if the card agreement does have a prohibition on those kinds of purchases then even though the purchases are legitimate, they're not allowed to be made on that card.  I didn't mean for my original comments to be rude or to be an indication that I thought that everyone who made those purchases was gaming the system.  Only the peopel who are violating the card agreements are "cheating." 

For whatever it's worth, I looked at the CSP terms and conditions and I believe reloads and etc. fall under the umbrella of "cash-like transactions" that are supposed to incurr cash-advance charges and interest without earning UR points.  If Chase decides to start checking on those transactions, you might be in for a nasty surprise.  If they don't check, you're in the clear!