Help with Amex

[Anonymous]

Hello,

   I recently had a problem with Amex today. I've been a card member since 1993 and have never paid late or missed any payments. Also I have never had an Amex charged off or brought up in bankruptcies.

   Today went online to update my phone information with my Amex card and they told me that they cancelled my card. Not because I had any negative business with them just because my but because on two of my account my balance was close to the credit limit. Also all of my cards are paid on time without any missed payments.

   When I tried to reapply for another amex card this is what I received:

"Thank you for your recent application for Blue from American Express.  After reviewing your request, regrettably, we are unable to open an account for you at this time for the following reason(s):

American Express cancelled your previous account(s).

An important notice concerning your rights is included.  The creditor is American Express Centurion Bank.

Thank you for your interest in our service."

Sincerely,

Robert Garinger

Business Leader New Accounts

So I got blacklisted because I paid my account on time have a credit score OVER 700 and because they cancelled my card they cant approve me for another one.

Does anybody have any suggestions what I should do?

[Anonymous]

I wouldn't cry over losing an AmEx card.  I've heard a lot of people (both customers as well as vendors) are fed up with them.  They are also doing a massive cancellation of  their accounts;  from some reports I've heard they're paying up to  $250 for cardholders to cancel their accounts.

I would say, just go for another Visa, MasterCard or Discover.  Don't cry over AmEx.

Dan

[Anonymous]

It if weren't for me having the 16 year relationship on my credit report I would hell no problem but does it look bad on the credit report when the creditor closes the account on someone?

[Anonymous]

It will have some bad effects because you have high balances on closed accounts and they were closed by the credit grantor.

This is going to kill your utilization percentages.....a balance without an offsetting CL.

Ideally, if an account is closed, it is best from a future lender's perspective if it is "Closed by consumer"  "$0 Balance"  "Paid as agreed"  "Never Late"

Having it closed by the creditor and having a remaining balance is bad for FICO and for LO review.

Once you PIF, this will help to minimize the impact because the account will remain on your CR for 10 years from close date, so it will continue to age and help AAoA during that time.  Once PIF, the only remaining thing that you would prefer to be different is who it says closed the account.

If you are able to PIF the accounts, possibly try sending the check for full payment with a letter requesting the accounts to be closed and CR marked closed by consumer.  Sort of a GW approach to the "closed by" part.  I have no idea if there is a chance....but you will have to pay it off anyway (either over time, by transfer or by lump) and if you could manage to get a change in the closed by, then PIF and closed by consumer is the ideal CR entry if the account is going to be closed.

Let us know what happens and good luck

Message Edited by txjohn on 04-10-2009 07:30 AM

[Anonymous]

You only have to wait 6 months to reapply after a card has been cancelled, as long as you didn't default you are not permanently blacklisted.

[Anonymous]

Thanks for all the help. My balance is only like $300 dollars on the account and the day before I paided them $550 before they cancelled the account. so I'll try and see if I can get the status changed to closed by credit consumer instead of credit grantor.

[haulingthescoreup]

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dtronx wrote:
Thanks for all the help. My balance is only like $300 dollars on the account and the day before I paided them $550 before they cancelled the account. so I'll try and see if I can get the status changed to closed by credit consumer instead of credit grantor.

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If you can't, don't tie yourself up in knots. American Express has done this to so many people that I feel that other lenders no longer bat an eye when they see "closed by grantor."

I have a store CC from long ago marked "closed by grantor" (I only used it once), and it has never been mentioned or asked about.

The main thing is to get the balance zeroed out, of course.

I did get a little confused --were the nearly maxed cards AmEx cards, or cards from other lenders? Because AmEx is certainly not the only bank doing this when they see high util on other banks' cards.

[Anonymous]

"Closed accounts may stay on your report for up to 10 years", I have to say that Amex is pretty good about staying put for the full 10 years though. The "closed by grantor" notation doesn't mean squat to fico. I have a card that was closed because of the Heartland breach and has that notation. Amex is a unique issuer with their "member since" date. I would get back in with them as soon as you can if age is a factor to your fico score. 

[haulingthescoreup]

Whenever I say "should report for 10 years", I include the "should" because closed accounts have been known to fall off early, especially on EQ. This happened to me with an old account that was only reporting to them. They have known problems with file stability, and if you pull a lot, you're apt to have your file split or have older accounts fall off. The account was only reporting to EQ, and it was a department store that was bought and then bought again, so it's a pretty dead trail.

Others have found that disputing or GW'ing negatives on closed accounts can result in the lender simply ceasing to report, often an unpleasant surprise when all that history disappears.

So anyway, with regard to the 10 years thing, hope for the best, prepare for (or at least, don't be surprised by) the worst.