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AXMCVI
Posts: 8
Registered: ‎06-12-2011
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Amex’s Financial review

Back in June I received a financial review .I closed my account not because i stretched my income.The reason being stubborn and to much work sending them info.They wanted all usual documation plus copy of my wife's   soc number and ID. If I apply for a Costco card in the future can I  plan receiving a FR before being approved.My Fico score is 788.  Thank you

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LS2982
Posts: 15,436
Registered: ‎04-09-2011
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Re: Amex’s Financial review


AXMCVI wrote:

Back in June I received a financial review .I closed my account not because i stretched my income.The reason being stubborn and to much work sending them info.They wanted all usual documation plus copy of my wife's   soc number and ID. If I apply for a Costco card in the future can I  plan receiving a FR before being approved.My Fico score is 788.  Thank you


Yes, any future AMEX approvals will be flagged with FR very shortly after getting account.

 




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Starting Score:
EX (PLUS) 583 EQ FICO 565 TU FICO 590 3/15/2011 / Goal Scores: 720
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Koop10010
Posts: 731
Registered: ‎02-15-2012
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Re: Amex’s Financial review

I don't blame you for not complying, I wouldn't either.  But yes, unfortunately, any future apps may be approved, but will be immediately flagged for an FR.

FICOs (2/24/12): EX 752, EQ 740
Chase Sapphire Preferred, Freedom; American Express PR Gold, Blue Cash Everyday
Moderator
Revelate
Posts: 9,764
Registered: ‎12-30-2011
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Re: Amex’s Financial review

[ Edited ]

May I ask why the hate for the Amex FR process?

 

I don't think it's substantially different from any other lender's AA in terms of aggravation or incidence rate, and I'd personally rather have the chance to exonerate myself instead of the typical lender AA answer which amounts to "You suck, go bother someone else, kktnxbai!"

 

I don't consider it to be any more invasive personally than pulling my credit report, which they have unlimited access to anyway if they so choose.  I may have to turn over tax returns for a mortgage someday, and I've already had to establish my income 3 times in the last year in order to continue my financial progress anyway.  I'm probably missing something, or I'm just special with regards to my rebuilding process, but it doesn't seem like that big of a deal.

 

Starting Score: EQ 561, TU 567, EX 599* (12/30/11, EX lender pull 12/29/11)
Current Score: EQ 04 673, EQ 8 707, TU 720, EX 702* (09/02/14, EX older)
Goal Score: 700 on EQ '04 (01/01/15)


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CreditScholar
Posts: 2,300
Registered: ‎01-22-2012
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Re: Amex’s Financial review


Revelate wrote:

May I ask why the hate for the Amex FR process?

 

I don't think it's substantially different from any other lender's AA in terms of aggravation or incidence rate, and I'd personally rather have the chance to exonerate myself instead of the typical lender AA answer which amounts to "You suck, go bother someone else, kktnxbai!"

 

I don't consider it to be any more invasive personally than pulling my credit report, which they have unlimited access to anyway if they so choose.  I may have to turn over tax returns for a mortgage someday, and I've already had to establish my income 3 times in the last year in order to continue my financial progress anyway.  I'm probably missing something, or I'm just special with regards to my rebuilding process, but it doesn't seem like that big of a deal.

 


I think one of the OPs major issues is that it places the burden of work upon himself, whereas with a soft pull the lender (like Amex) does the work for you. If a cardholder has done something odd to trigger a F/R like running business expenses through a personal Amex, then it's to be expected. That's part of what it means to do business with Amex.

 

However there have been others who have been FRed with no good reason (that can be identified), and then it becomes an issue of integrity and respect. If I asked a long-time client who had always paid his bills on time to hand his financials/tax info over to me, he'd probably scoff and take his business elsewhere. Added to the burden placed upon the cardholder, I can see why some may not want to comply.

 

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Valued Contributor
Dustink
Posts: 3,097
Registered: ‎10-02-2012
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Re: Amex’s Financial review


CreditScholar wrote:

Revelate wrote:

May I ask why the hate for the Amex FR process?

 

I don't think it's substantially different from any other lender's AA in terms of aggravation or incidence rate, and I'd personally rather have the chance to exonerate myself instead of the typical lender AA answer which amounts to "You suck, go bother someone else, kktnxbai!"

 

I don't consider it to be any more invasive personally than pulling my credit report, which they have unlimited access to anyway if they so choose.  I may have to turn over tax returns for a mortgage someday, and I've already had to establish my income 3 times in the last year in order to continue my financial progress anyway.  I'm probably missing something, or I'm just special with regards to my rebuilding process, but it doesn't seem like that big of a deal.

 


I think one of the OPs major issues is that it places the burden of work upon himself, whereas with a soft pull the lender (like Amex) does the work for you. If a cardholder has done something odd to trigger a F/R like running business expenses through a personal Amex, then it's to be expected. That's part of what it means to do business with Amex.

 

However there have been others who have been FRed with no good reason (that can be identified), and then it becomes an issue of integrity and respect. If I asked a long-time client who had always paid his bills on time to hand his financials/tax info over to me, he'd probably scoff and take his business elsewhere. Added to the burden placed upon the cardholder, I can see why some may not want to comply.

 


+1 agree

 

 

Too many INQs & low AAoA so I'm off to tend the Garden.     Age:23    


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Moderator
Revelate
Posts: 9,764
Registered: ‎12-30-2011
0

Re: Amex’s Financial review

[ Edited ]

CreditScholar wrote:

Revelate wrote:

May I ask why the hate for the Amex FR process?

 

I don't think it's substantially different from any other lender's AA in terms of aggravation or incidence rate, and I'd personally rather have the chance to exonerate myself instead of the typical lender AA answer which amounts to "You suck, go bother someone else, kktnxbai!"

 

I don't consider it to be any more invasive personally than pulling my credit report, which they have unlimited access to anyway if they so choose.  I may have to turn over tax returns for a mortgage someday, and I've already had to establish my income 3 times in the last year in order to continue my financial progress anyway.  I'm probably missing something, or I'm just special with regards to my rebuilding process, but it doesn't seem like that big of a deal.

 


I think one of the OPs major issues is that it places the burden of work upon himself, whereas with a soft pull the lender (like Amex) does the work for you. If a cardholder has done something odd to trigger a F/R like running business expenses through a personal Amex, then it's to be expected. That's part of what it means to do business with Amex.

 

However there have been others who have been FRed with no good reason (that can be identified), and then it becomes an issue of integrity and respect. If I asked a long-time client who had always paid his bills on time to hand his financials/tax info over to me, he'd probably scoff and take his business elsewhere. Added to the burden placed upon the cardholder, I can see why some may not want to comply.

 


While I agree with your sentiments, I strongly suspect that no good (or discernable) reason doesn't mean no reason unfortunately.  I don't think everyone here is brutally honest and entirely complete with the sins of their past... or in this case, present.  I know personally I've never posted the amount of my albatross as an example, and I'm pretty open compared to a lot of folks with my credit idiocy.

 

Also I can't imagine that Amex decides to do FR's for absolutely no reason, like you suggest it doesn't make any sense with the possible immediate loss of a pontentially good future customer.

 

I don't know the full details of everyone's FR issue, but the ones who have generally described their situation in detail, deserved it.  I can't find fault with Amex's practices on this count, if anything it keeps things less expensive for folks like me who are coloring inside the lines as a result of their vigilance.  Personally if I trigger a FR, I'll just fork over the requisite documentation on the assumption I screwed the proverbial pooch somewhere.

 

 

 

Starting Score: EQ 561, TU 567, EX 599* (12/30/11, EX lender pull 12/29/11)
Current Score: EQ 04 673, EQ 8 707, TU 720, EX 702* (09/02/14, EX older)
Goal Score: 700 on EQ '04 (01/01/15)


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Valued Contributor
CreditScholar
Posts: 2,300
Registered: ‎01-22-2012
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Re: Amex’s Financial review


Revelate wrote:

CreditScholar wrote:

Revelate wrote:

May I ask why the hate for the Amex FR process?

 

I don't think it's substantially different from any other lender's AA in terms of aggravation or incidence rate, and I'd personally rather have the chance to exonerate myself instead of the typical lender AA answer which amounts to "You suck, go bother someone else, kktnxbai!"

 

I don't consider it to be any more invasive personally than pulling my credit report, which they have unlimited access to anyway if they so choose.  I may have to turn over tax returns for a mortgage someday, and I've already had to establish my income 3 times in the last year in order to continue my financial progress anyway.  I'm probably missing something, or I'm just special with regards to my rebuilding process, but it doesn't seem like that big of a deal.

 


I think one of the OPs major issues is that it places the burden of work upon himself, whereas with a soft pull the lender (like Amex) does the work for you. If a cardholder has done something odd to trigger a F/R like running business expenses through a personal Amex, then it's to be expected. That's part of what it means to do business with Amex.

 

However there have been others who have been FRed with no good reason (that can be identified), and then it becomes an issue of integrity and respect. If I asked a long-time client who had always paid his bills on time to hand his financials/tax info over to me, he'd probably scoff and take his business elsewhere. Added to the burden placed upon the cardholder, I can see why some may not want to comply.

 


While I agree with your sentiments, I strongly suspect that no good (or discernable) reason doesn't mean no reason unfortunately.  I don't think everyone here is brutally honest and entirely complete with the sins of their past... or in this case, present.  I know personally I've never posted the amount of my albatross as an example, and I'm pretty open compared to a lot of folks with my credit idiocy.

 

Also I can't imagine that Amex decides to do FR's for absolutely no reason, like you suggest it doesn't make any sense with the possible immediate loss of a pontentially good future customer.

 

I don't know the full details of everyone's FR issue, but the ones who have generally described their situation in detail, deserved it.  I can't find fault with Amex's practices on this count, if anything it keeps things less expensive for folks like me who are coloring inside the lines as a result of their vigilance.  Personally if I trigger a FR, I'll just fork over the requisite documentation on the assumption I screwed the proverbial pooch somewhere.

 

 

 


+1. I agree with this in that a FR is costly both in terms of time and money, so it isn't to be done lightly. Amex obviously has some triggers (even if they are unpublished) to help them decide who warrants a FR.

 

However just because the flags are raised doesn't automatically mean that you screwed up, even though it may look like you did. The IRS operates in a similar fashion in that it has parameters to determine what is normal and what isn't. Depending on how far outside "normal" you are, an audit may be conducted. Not all audits find evidence of wrong-doing, and for these people especially the additional work/stress of an audit is an exceptional pain in the ass. Then again, they're the IRS and you can't exactly refuse to comply. Amex isn't the IRS, therefore some have chosen to not comply and accept that their accounts will be shutdown.

 

FICOs: EX: 826, EQ: 817, TU: 810
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Regular Contributor
shadow2k
Posts: 108
Registered: ‎01-04-2008
0

Re: Amex’s Financial review


CreditScholar wrote:
However there have been others who have been FRed with no good reason (that can be identified), and then it becomes an issue of integrity and respect. 

 


This reasoning always bothered me.  Partly because I just think "you've offended my honor!" every time I hear it (which is almost always).  The main reason though, is by applying for credit, you're basically asking Amex for a favor...to lend you money.  I see no reason why it would be offensive for them to check and make sure that their money will be safe if I decide to go spend it.  

 

If I had a problem with the possibility of an FR, I would never app to Amex in the first place.  I'm well aware of the practice of it (and I think the rate at which it happens and why it happens are sensationalized).  I'd much rather be given the opportunity to keep my credit lines with them, as opposed to other banks that will just shut you down without any chance of appeal.

Valued Contributor
navigatethis12
Posts: 1,954
Registered: ‎01-24-2012
0

Re: Amex’s Financial review

I was finacially reviewed after spending $2000 on a new card. The income I put down was 35000, although they had it as 42000 somehow. So charging 6% of your income is somehow risky to them? The first charge I did with PNC was 4 or 5000, I cannot remember. They did block it at first because of the large amount, but when I confirmed it was me they let it go through. To date I have spent more than stated income with them and they have not said anything. With Chase and FIA I charged up to the limits on all of the cards I have with them multiple times and not a peep came out of them. FIA never even blocked the large purchases. I know every lender is different, but a financial review when others do not even care is a bit odd.

 

There is also the question of why do they not do this when you are first approved for the card? Should they not confirm income before they even issue the card. A bank does not let you take out a mortgage or loan first and then confirm what you stated was true. They do all of the paperwork first, and if it looks good, then they issue the loan. So I can understand people's apprehensiveness in going through with this.

 

I guess I got lucky though. The sheet I had to fill out, only had a few boxes to write in and then to sign it. Others have said they have to pay the Internal Revenue Service to receive some kind of sheet to then send to American Express.


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