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Valued Contributor
indiolatino61
Posts: 1,439
Registered: ‎11-10-2012

Is That Extra $5,000 Really That Important?

Hello all...I am going to apply for the BCP in January, 2014 for maximum backdating. My question is as follows...if it is commonly accepted that Amex will want the IRS verification form submitted if you request over $25,000 in CLI, why would anyone risk it? I know that if I get the BCP, I will NEVER want to go above a $20,000 CL. Is that last $5,000 really worth the aggravation? I'd be more than happy with $20,000, which I will never even get close to using. Thank you for your input to satisfy my curiosity.

 photo Logo-CreditCardCollection_zps46f2f9f7.jpgWmart (TU): 809, Disc it (TU): 809, CKarma (TU): 772, AmEx (EX): 755, CSesame (EX): 727, Quizz (EQ): 775, myFICO (EQ): 770.
Oldest: AmEx: 26Y-5M, AAoA: 7Y-5M, Utl: 2.73%, 12/24 Inq: 6/16, Income: $104k, Garden: 06/16/2014. Updated 07/20/2014.
Super Contributor
enharu
Posts: 6,889
Registered: ‎02-27-2013

Re: Is That Extra $5,000 Really That Important?


indiolatino61 wrote:

Hello all...I am going to apply for the BCP in January, 2014 for maximum backdating. My question is as follows...if it is commonly accepted that Amex will want the IRS verification form submitted if you request over $25,000 in CLI, why would anyone risk it? I know that if I get the BCP, I will NEVER want to go above a $20,000 CL. Is that last $5,000 really worth the aggravation? I'd be more than happy with $20,000, which I will never even get close to using. Thank you for your input to satisfy my curiosity.


even with a CL under 20k, they might still want to do income verification from time to time. Don't confuse this with FR. 

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Established Contributor
Cdnewmanpac
Posts: 767
Registered: ‎01-16-2012

Re: Is That Extra $5,000 Really That Important?

What risk? I don't lie on my applications and my tax returns match my stated income to the cent. If amex, or any other lender, wants proof of income, I'm happy to provide it. If you don't want to provide the proof, just do nothing. The CLI will disappear, but the card will still work fine. You may be confusing income verification after requesting CLI with 'financial review", which may use the same form, but is a very different process.

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Moderator
webhopper
Posts: 7,230
Registered: ‎09-16-2011

Re: Is That Extra $5,000 Really That Important?


indiolatino61 wrote:

Hello all...I am going to apply for the BCP in January, 2014 for maximum backdating. My question is as follows...if it is commonly accepted that Amex will want the IRS verification form submitted if you request over $25,000 in CLI, why would anyone risk it? I know that if I get the BCP, I will NEVER want to go above a $20,000 CL. Is that last $5,000 really worth the aggravation? I'd be more than happy with $20,000, which I will never even get close to using. Thank you for your input to satisfy my curiosity.


IMHO the extra $5k isn't worth it.

 

They gave me a $22k limit on Amex Lowes. There is no way I'll ever spend that much on the card, and I will not be requesting any CLI


Starting Score: 08/29/2011 TU 671 EQ 674
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Senior Contributor
Walt_K
Posts: 3,065
Registered: ‎11-02-2009

Re: Is That Extra $5,000 Really That Important?

You don't have to provide the info to support a CLI.  If you don't want to provide the 4506t, then they just deny the CLI.  Your account isn't shut down like it is when you fail to provide the forms for a financial review.  So there isn't a lot of risk involved.

 

Also, I'm not sure why you are setting the limit at $20K and asking if the extra $5K is worth the aggravation.  Anecdotally, income verification is requested for going above $25K, not for going above $20K.  There are tons of success stories on here of people asking for up to $25K without having to provide any information to verify income.

 

I have a $27K limit on my SPG.  I wasn't asked for income verification, but my last CLI from $25K to $27K was an auto CLI.  That is a little different than me requesting it.  I have read other accounts of people asking for higher CLs and not having to provide any forms.  Amex doesn't necessarily ask for additional information, but it does seem to be more common for CLs above $25K.

 

I agree with your overall point that $20K is a fairly sufficient credit line.  If you need more than that, a charge card is a good option. 

 

 


Starting Score: ~500 (12/01/2008)
Current Score: EQ 681 (04/05/13); TU 98 728 (01/06/12), TU 08? 760 (provided by Barclay 1/2/14), TU 04 728 (lender pull 01/12/12); EX 742 (lender pull 01/12/12)
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Senior Contributor
youngandcreditwrthy
Posts: 6,154
Registered: ‎08-16-2012

Re: Is That Extra $5,000 Really That Important?

I think $24,999 doesn't get require IRS verification.
It's $25k+, albeit arguably...

I feel like Amex is being intrusive with this practice. How I get my income is none of their business.
I'd be more than willing to show bank statements, not a 4506t.
Shiz, I hope they aren't reading this. 😳

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Senior Contributor
Walt_K
Posts: 3,065
Registered: ‎11-02-2009

Re: Is That Extra $5,000 Really That Important?


youngandcreditwrthy wrote:
I think $24,999 doesn't get require IRS verification.
It's $25k+, albeit arguably...

I feel like Amex is being intrusive with this practice. How I get my income is none of their business.
I'd be more than willing to show bank statements, not a 4506t.
Shiz, I hope they aren't reading this. 😳


Based on a lot of posts, $24,999 is not accurate.  All the way up to $25K does not usually trigger income verification.  There are some reports that above $25K can trigger it.

 

I don't think this is intrusive.  You're asking someone to extend you more than $25K in unsecured credit, it's reasonable for them to want to verify income.  And if you don't want to send it, then you don't have to.  Again, this is not like FR where they shut down your accounts.

 

Finally, if you wonder why they want tax returns, just look at the posts you see on here where people can't understand why they're not allowed to use income they don't claim for purposes of a loan.   


Starting Score: ~500 (12/01/2008)
Current Score: EQ 681 (04/05/13); TU 98 728 (01/06/12), TU 08? 760 (provided by Barclay 1/2/14), TU 04 728 (lender pull 01/12/12); EX 742 (lender pull 01/12/12)
Goal Score: 720


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Established Contributor
ibmrad7
Posts: 600
Registered: ‎12-11-2010

Re: Is That Extra $5,000 Really That Important?

I guess only few see it differently and I am one of them. I would be happy to give them all the income proof and be done with it. My income matches to last dollar that I gave to Amex during application process.


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Valued Contributor
bs6054
Posts: 1,673
Registered: ‎11-11-2012

Re: Is That Extra $5,000 Really That Important?


ibmrad7 wrote:

I guess only few see it differently and I am one of them. I would be happy to give them all the income proof and be done with it. My income matches to last dollar that I gave to Amex during application process.


I think a lot would agree with you (but I am not one of them!).   If it was just income verification, e.g. calling your employer or something, I think most would agree that that is reasonable.  But the tax form contains a whole lot more info, including that about dependents and spouse if applicable, that Amex really doesn't need to know.

 

Now in some sense this isn't Amex's fault.  With photoshop etc, it's too easy to fake stuff so a lender cannot accept material submitted by the requester, and many employers no longer support 3rd party income verification, so this is the easiest reliable way for Amex to get the info they need.  But since it also gives them info they don't need, that's when people have to evaluate if the CLI with Amex is worth it, or should they get another credit line somewhere else.

 

I did do this to get my CL above $25K, but that was when I was more naive (Oct 2012!)  I wouldn't do that now.


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