I just Can't Figure AMEX Out!!!!

[Open123]

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@L-TWT wrote:

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@MustangSaluki wrote:

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@L-TWT wrote:

I have been a member with AMEX since 2006, and all in all, my experience has been excellent. If I can remember correctly when I first opened my acct my starting CL was ~2K and has grown to 30K w/o any automatic increases, all self initiated SP's VIA the online automative system. So to answer ever1's queation, the automative system will allow approves over 25K, but will try trigger AMEX to FR your acct. With that said my acct was FR'd, I submitted the paper work and 30K CL OK'd. Around 2009/2010 CL dropped to 6.7K w/o warning, that was ok with me, b/c that was around the time the economy was in the tank. So in the mid of 2010 I called to have my CL dropped to 5K b/c  I only used the card for groceries & gas. So in late 2012, I added my brother as an AU on my acct b/c he was on a fixed income due to suffering a stroke. Now, from January 2013 to March 31, 2013, I kid you not, I have received a total of 7 automatic CL increases, which brought my CL to 35K. This has really baffled me for my income is the same, Credit score the same & my brother does not help pay towards my monthly payment. So what do u guys think?

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It is important to distinguish Amex Financial Review vs 4506T for a CLI request. These two are not the same and largely perpetuated due to slight differences in language of posts on the forums. Sorry this is not a knock on you, so please accept my apologies if it is coming of in a different way.

To get better data points, can you please calrify if your account(s) was/were suspended after you requested the 30K CL? Did you have any other Amex accounts? Were those functional or suspended after you made the request? Any charge cards that had a hard limit set till you passed the 4506T review?

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Would u please be so kind to explain the difference btw a FR & 4506T? B/C when i was FR'd I was required to fax in the 4506T forms W/I 24-48hrs after CL requested!

And yes, my acct was temporarly suspended until forms received by AMEX. Lastly, I did not have an AMEX charge card w/a hard limit.

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This is an FR, where failure to submit leads to all account closures immediately.

When requesting a CLI above $25K, one may receive a notice that for the increase to be considered, a 4056T must be submitted.  If not, then Amex will just not grant or consider the increased CLI, but there's no account closure or otherwise adverse action taken by Amex.

[Open123]

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@youngandcreditwrthy wrote:
I'm not trying to sound rude, but that isn't answering my question....
Im trying to figure out if I add an AU to my account.. Said AU has NO credit!! Will their credit report have an impact on my Amex Acount...?
Does Amex have the authority to adjust my account based on an AU's credit history...or SP this AUs credit report?

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No, and No.

Now, your AU may engage in the type of spending rumored to be associated with triggering a potential FR, but aside from that, there isn't any otherwise deleterious effects on your CR.

[MustangSaluki]

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@L-TWT wrote:

Would u please be so kind to explain the difference btw a FR & 4506T? B/C when i was FR'd I was required to fax in the 4506T forms W/I 24-48hrs after CL requested!

And yes, my acct was temporarly suspended until forms received by AMEX. Lastly, I did not have an AMEX charge card w/a hard limit.

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Thanks for the post L-TWT. As you experienced yourself, during an F/R accounts are suspended and if you want the accounts reinstated, sending the signed 4506T form is mandatory. If you don't, they can close the cards and report  to the bureaus as such which never looks good on the Credit Report. After the 4506T review they have been known to cut revolving limits and place hard limits on charge cards too.

What you went through is definitely a full blown financial review. There are a lot more factors that trigger an FR after requesting CL over 25k and we never get to know the full story. This has created an impression that requesting >$25,000 CL is the reason behind the FR. In my opinion it might be the trigger but there are a lot more factors that go behind it after reading various stories till date.

The other scenario that I was talking about is the 4506T for any CLI request. This can happen for any amount and not necessarily 25k for one account, but typically is done when requesting 25k on one account or the total across all revolvers exceed 34,500. The difference is that sending this form is optional in this scenario. You don't get your Amex cards suspended. Not sending the signed form just means no CLI (more info in the sticky).

[L-TWT]

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@MustangSaluki wrote:

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@L-TWT wrote:

Would u please be so kind to explain the difference btw a FR & 4506T? B/C when i was FR'd I was required to fax in the 4506T forms W/I 24-48hrs after CL requested!

And yes, my acct was temporarly suspended until forms received by AMEX. Lastly, I did not have an AMEX charge card w/a hard limit.

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Thanks for the post L-TWT. As you experienced yourself, during an F/R accounts are suspended and if you want the accounts reinstated, sending the signed 4506T form is mandatory. If you don't, they can close the cards and report  to the bureaus as such which never looks good on the Credit Report. After the 4506T review they have been known to cut revolving limits and place hard limits on charge cards too.

What you went through is definitely a full blown financial review. There are a lot more factors that trigger an FR after requesting CL over 25k and we never get to know the full story. This has created an impression that requesting >$25,000 CL is the reason behind the FR. In my opinion it might be the trigger but there are a lot more factors that go behind it after reading various stories till date.

The other scenario that I was talking about is the 4506T for any CLI request. This can happen for any amount and not necessarily 25k for one account, but typically is done when requesting 25k on one account or the total across all revolvers exceed 34,500. The difference is that sending this form is optional in this scenario. You don't get your Amex cards suspended. Not sending the signed form just means no CLI (more info in the sticky).

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Thanks for the thorough clarification! 

[youngandcreditwrthy]

Thanks for the info!!

[sassymomof2]

Nice!