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Diners Club Account Reviews

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NRB525
Super Contributor

Re: Diners Club Account Reviews


@cjd wrote:

@NRB525 wrote:

@IWOL wrote:

@cjd wrote:

@IWOL wrote:

@Anonymous wrote:

@IWOL wrote:

@Anonymous wrote:

@B335is wrote:

Baller,

 

Is this the post from FT?  If it is, the poster shared nothing about their credit profile such as negs, new accts, util, etc... and only said they had the Elite card.  I'm really not going to panic over one report of this - something every other bank already does on a frequent basis.  So if BMO decides to close my (Premier) card down, so be it.  I'm just not ready to go into panic mode over one report.

 

Is there some way these threads can be consolidated into a single "Diner's Club" thread?


Actually that poster does provide more info in other posts; never MSed, paid in full and provided financial docs for review and was still shut down.


But the poster also said they had a very small W2 income and a limit of 50k. 


True but he also had the ability to prove much higher income but they wouldn't accept it (at least that's what I gathered).  A lot of people have significant income that doesn't show up on W-2s


Might not show up on W2 but would show on 4506. Wonder if poster offered that up? My guess is no.  I thought that I had read that the poster also said 50k limit was double his next highest limit.  The point is, they probably won't shut you down if  your profile and provable income justifies your limit.

 

Seems quite a few were given limits double or triple their current average with thin files and limit to income ratio out of whack. Those are the ones in danger of shutdown. 

 

The probelm is, it's unfair of them to close accounts when the customer didn't  ask for a limit that is not comestruate with their profile/income. They should be doing CLD instead. 


But isn't that just what you put on your 1040 whatever?  If they aren't willing to accept the proof that you put on your form, why would they accept that? From my understanding of the above posts, I would not be able to apply for this card because I just found out that my salary for the next two years will not be reported to the IRS.


Don't understand what your saying. If you don't get a W2 for your income then you either get 1099 or schedule C if you have a business. Either way those will be reported on your tax return. The 4506 form from the IRS comes from them IRS directly and will show what you reported on your tax return.

 

The poster did not say if they offered DC a 4506. They just say they had a low W2 income so we can only assume that they don't want  to supply other verifiable proof of income or their reported income is lower than what they actually earned and perhaps they don't declare their real income. 

 

Your salary is not reported to the IRS. Your employer files a W2 or a 1099. It's then up to you to file a return or not. If your exempt from filing Federal and State taxes for some reason that just means you don't have to pay taxes but I would assume you still have to file a return which would give you proof of your income.


The income on your 1040? Yes, and guess what, when you sign your 1040, you are signing a pledge to the US Federal Government that your 1040 is true, so help you god. And there's a cot in a federal pen for several people who were not truthful on their 1040. AMEX uses the 4506-T partially to get a clear view of the annual income situation, and I'm sure also because the Feds are backing up the enforcement that this is true information, not being doctored. AMEX also accepts non-W2 income, and so the 4506-T is a more complete view. If BMO-Harris has decided W-2 is the only way to go, then the 4506-T does not provide useful information for them that the W-2 or paystubs already provides.

 

If your employer is not reporting your income to the IRS, and you are a US Citizen, you need to get a new employer. If they don't report it, you must report it, no matter the source, no matter the country.

 

And it seems, from the two snippets provided ( I have not searched for the other threads ) that non-standard earnings are not being allowed now. So for myself, I have no concerns about my Diners card. All my income is boring W-2 style, and my limit is in the range of my other cards. I also was not instantly approved, went through review (likely because of the high existing utilization) so again, I don't think I have a worry.


I was trying to get clarity on the w2 vs 4506-t as proof of income based on what the bank allows more as an fyi because it seems that a portion of their target customer (of which I am not) might fall into that category.

 

And trying not to hijack the thread, but my employer, a vey large state university, has decided 1) that my income is going to be considered a fellowship instead of earned income and 2) they are not reporting anything via 1099s. I found that out when I went to HR to see why I hadn't received any tax documents yet. I probably stared at the woman for a good 30 seconds when she printed a screenshot of her computer as my evidence of getting paid. This is the first time I've experienced anything like that and is why I was interested in this thread.


Ok, yeah, you should get some advice from a tax accountant. A quick read through some IRS publications indicates there are certain requirements and exclusions that relate to a fellowship. It looks like all the money must be spent, on qualifying expenses, and that does not include room and board. Best to understand any (presuming there are any) issues now, and if necessary plan for tax deposits, than be unpleasantly surprised a year or two from now.

High Bal Jan 2009 $116k on $146k limits 80% Util.
Oct 2014 $46k on $127k 36% util EQ 722 TU 727 EX 727
April 2018 $18k on $344k 5% util EQ 806 TU 810 EX 812
Jan 2019 $7.6k on $360k EQ 832 TU 839 EX 831
March 2021 $33k on $312k EQ 796 TU 798 EX 801
May 2021 Paid all Installments and Mortgages, one new Mortgage EQ 761 TY 774 EX 777
April 2022 EQ=811 TU=807 EX=805 - TU VS 3.0 765
Message 71 of 96
amex77
Member

Re: Diners Club Account Reviews

I'm a retired letter carrier and DC gave me a $50,000 limit. When I called to see if my app was approved I thought the csr said $15,000 which would have been more than enough. When he said no it's not 15 it's 50 I almost crapped my pants. I've had good credit my entire adult life (790 FICO) but there is no way I should have gotten $50,000. Luckily for DC I'm a legit guy and never charge more than I can pay for in 30 days. If they are going strictly by income I'll probably get shut down. If they take my 40 years of good credit into consideration I might make the cut. I'm not loosing any sleep over it.

Message 72 of 96
taxi818
Super Contributor

Re: Diners Club Account Reviews


@amex77 wrote:

I'm a retired letter carrier and DC gave me a $50,000 limit. When I called to see if my app was approved I thought the csr said $15,000 which would have been more than enough. When he said no it's not 15 it's 50 I almost crapped my pants. I've had good credit my entire adult life (790 FICO) but there is no way I should have gotten $50,000. Luckily for DC I'm a legit guy and never charge more than I can pay for in 30 days. If they are going strictly by income I'll probably get shut down. If they take my 40 years of good credit into consideration I might make the cut. I'm not loosing any sleep over it.


Well at least you can see the potential harm that can be caused to bmo because if that kind of limit. I don't blame them at all. Cya is best in this case. I kno myfico me,bears not happy but it is what it is. I have no fear. As I'm line red. 5k limit not an issue. 

Message 73 of 96
B335is
Moderator Emeritus

Re: Diners Club Account Reviews


@SGR wrote:

One thing worth mentioning (if it hasn't already been said) is that the person who had their card closed admitted that they "went close to the limit" of a $50k elite card (and also paid in full at the end of the month). This is far from normal behavior and does not reflect the usage behavior of the vast majority of Diners Club card holders.


Interesting point. Just about every other lender would raise an eyebrow over this as well. 

 

 

Message 74 of 96
baller4life
Super Contributor

Re: Diners Club Account Reviews

I'm sorry but I don't see anywhere that the person went close to limit then pif.
Message 75 of 96
SGR
Contributor

Re: Diners Club Account Reviews


@baller4life wrote:
I'm sorry but I don't see anywhere that the person went close to limit then pif.

They mentioned it while they were waiting to hear back from Diners about their suspension, prior to actually learning of the closure. The OPs direct quote was "I have an Elite card and spent close to the limit.... Supposed to get an answer in 48 hours if I get to keep it and/or anywhere near the limit I have/had (50k)." In a previous post he/she also stated that they always PIF and the cards balance was $0 at the time of review.

Message 76 of 96
baller4life
Super Contributor

Re: Diners Club Account Reviews

I see. Thanks for the addtl info. I also found where poster said they were unwilling to accept 4506-t as proof of income. That just seems pretty absurd.
Message 77 of 96
longtimelurker
Epic Contributor

Re: Diners Club Account Reviews


@baller4life wrote:
I see. Thanks for the addtl info. I also found where poster said they were unwilling to accept 4506-t as proof of income. That just seems pretty absurd.

Well, yes and no!  One of the arguments about Amex using 4506-T is that is might not be at all current.   When getting a mortgage, you tend to be asked for recent paychecks (as well).   Until August or so, a creditor cannot get the return for last year's income, so in June 2015, they could get your 2013 tax return, showing what you made 18 months ago.    So it makes sense to request more current proofs.

Message 78 of 96
baller4life
Super Contributor

Re: Diners Club Account Reviews

LTL I understand your point. But do you believe that Diners is fair to only accept W-2 and SSI income as proof of income and not be willing to look at an applicants entire financial picture via 4506-t?
Message 79 of 96
longtimelurker
Epic Contributor

Re: Diners Club Account Reviews


@baller4life wrote:
LTL I understand your point. But do you believe that Diners is fair to only accept W-2 and SSI income as proof of income and not be willing to look at an applicants entire financial picture via 4506-t?

No, I don't think it's fiar (although of course they can make whatever rules they like).   But remember also that the 4506-T doesn't (directly) show everything either.  We've had recent posts of they type "I have 16 gazillion dollars in Chase Checking and they still....."    Assets, which can be a substantial part of the overall financial picture aren't (again directly) on the tax return either

Message 80 of 96
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