10-16-2012 01:11 PM
Technically speaking taking that $35000 number, while that's roughly 6% of your annual gross income, that's not the way Amex likely factors it. They almost certainly divide your estimate of post-tax income by 12 from eons ago as charge cards are all term one month (probably applies to their revolvers too but that's just a pure swag). Ballparking that's what $5K tax burden assuming single / nothing fancy?
So by napkin math, $30000/12 = $2500, and as such you spent 80% of your monthly income. I can see Amex's potentially raising a flag on that one.
CS: this sort of example is what I meant by my probably screwing up somewhere: if my expenditures outstrip my reported income or come close to it in a given month, Amex may have an issue with it expecially as I don't have any history with them to date. Going to have to see frankly, but hopefully I don't blow it this month, even though I'm of the opinion it's not a big deal, I'm a little on edge that I'll trigger it even with $2500 spend at a monthly post-tax income of roughly $6800 reported.
Should've pushed that bedding purchase till next reporting statement.... this forum does wonky things to my head sometimes .
You are about right with your calculations, but I have two revolvers with them with zero interest. Spending a month of income still does not seem like a big deal to me, and it was a business card. Don't all businesses spend a lot in the beginning. I also had/have money saved up, so could easily pay it off if neccesary. I just think it odd that PNC does not seem to care that I have spent more than I reported as income; quite a bit more actually. But American Express gets scared after one tiny charge.
myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.>> About myFICO