AMEX FR Explained

[Anonymous]

fused111 wrote:

1.) Are there certain behaviors which might raise red flags?

2.) If Amex just freezes your accounts but does not close them, what might the effect be on your FICO  scores.

3.) What if someone refuses to the FR, are there other ramifications.

Do you think PIF every month on this card and not using their flex account might be a way to avoid an FR?

1) Pushing the LUV button a lot seems to do it.

2) If you're current, and they squirrel around and do anything that moves the account into the Adverse column on your CRs, they are flirting with a lawsuit for FCRA violations.

3) You're not late, no collection, no charge off, etc. If they do anything that makes the TL adverse, methinks you've got more than adequate grounds for a lawsuit. Not like they're going to theaten to report your name to Homeland Security.

AMEX tends to like PIF each month, even on credit cards, but even that won't completely avoid an FR.

[fused]

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Noah_Bodie wrote:

fused111 wrote:

1.) Are there certain behaviors which might raise red flags?

2.) If Amex just freezes your accounts but does not close them, what might the effect be on your FICO  scores.

3.) What if someone refuses to the FR, are there other ramifications.

Do you think PIF every month on this card and not using their flex account might be a way to avoid an FR?

1) Pushing the LUV button a lot seems to do it.

2) If you're current, and they squirrel around and do anything that moves the account into the Adverse column on your CRs, they are flirting with a lawsuit for FCRA violations.

3) You're not late, no collection, no charge off, etc. If they do anything that makes the TL adverse, methinks you've got more than adequate grounds for a lawsuit. Not like they're going to theaten to report your name to Homeland Security.

AMEX tends to like PIF each month, even on credit cards, but even that won't completely avoid an FR.

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I am very glad for your reply.  I have nothing to hide and have kept my revolving balances very low.  I guess it's what Tuscani said, "the process sucks."  Maybe, Amex could save all of us headaches and simply verify what they need prior to approving applicants.  Going back after the fact and harassing someone like me or any good cardholder is bad business.  I would divorce them.  I said enough on this subject, thank you for letting me vent.

[Anonymous]

fused111 wrote:

I am very glad for your reply.  I have nothing to hide and have kept my revolving balances very low.  I guess it's what Tuscani said, "the process sucks."  Maybe, Amex could save all of us headaches and simply verify what they need prior to approving applicants.  Going back after the fact and harassing someone like me or any good cardholder is bad business.  I would divorce them.  I said enough on this subject, thank you for letting me vent.

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I think you've touched on the commonly held belief that AMEX is a very conservative lender who caters only to the well to do. I disagree with that assessment, sorta.

I think AMEX likes steady payers, but I think they also like to flirt with a certain type of borrower who might otherwise be considered a risk. AMEX likes risk takers in the form of business folk blazing new trails. But, just like the stock market and the horsetrack, sometimes you bet on winners and sometimes you bet on losers.

AMEX tends to be very generous with CLIs, and if you're the next Bill Gates striking it rich in whatever AMEX wants to be part of your key to success. However, if you're trying to make it big as a buggy whip maker, and you ain't bringing in cash, an AMEX FR will probably slash your CLs.

[UnderEstimated]

I received an AMEX FR on my Gold Rewards card about 6 months ago, but it was pretty much nonsense since they had my annual income at $10,000.  AMEX has been good with me and I've used their "Pay Over Time" option on some larger purchases.

[Anonymous]

sounds like they "underestimated" your income.

I asked my brother about this (he has a corporate platinum and a personal clear) and he actually has never heard of "Financial Review". He has held some form of AMEX card for nearly 25 years, so I am surprised he was never FR'd. Then again, he has never missed a payment on his personal cards, and his corporate card is paid by his company.

[Anonymous]

There have been people who have never missed a payment and were still hit with a FR...

[Calamity]

The Amex FR usually, not always, targets members who have revolving cards.  It begins with cardholders who attempt too many CLI's over a short span of time, apply for too much credit especially unsecured loans and having high balances and only paying the minimum due for an extended period of time.  Amex reviews (soft pulls) all of their cardholders reports monthly so they can easily see if you are or have recently been on an app spree. 

To clear the air, Amex does not randomly do FR's.  It is triggered by the behaviors of the cardholder that are mentioned above.  Their might be other negative things a cardholder can do which can trigger an FR, these are just a few I know of.

[Anonymous]

Good thread...I now know to avoid doing business with AmEx.

[Anonymous]

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TheNewWorldMan wrote:
Good thread...I now know to avoid doing business with AmEx.

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Dude,

Gotta think outside the box. Just as Cap 1 can get gamed, so too can AMEX.

Don't get mad. Get even.

[Anonymous]

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@Calamity wrote:

The Amex FR usually, not always, targets members who have revolving cards. It begins with cardholders who attempt too many CLI's over a short span of time, apply for too much credit especially unsecured loans and having high balances and only paying the minimum due for an extended period of time. Amex reviews (soft pulls) all of their cardholders reports monthly so they can easily see if you are or have recently been on an app spree.

To clear the air, Amex does not randomly do FR's. It is triggered by the behaviors of the cardholder that are mentioned above. Their might be other negative things a cardholder can do which can trigger an FR, these are just a few I know of.

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True, the F/Rs are probably not random, but they might as well be. There are many cardholders who reported that they received the dreaded F/R without doing any of the above-listed behaviors - indeed, they did nothing that would be regarded as negative. Cardholders who have paid their Amex credit cards in full every month, used their cards for small purchases, large purchases, travel, etc. Cardholders who reported their income honestly on every application. Cardholders who would seem to fit the "Amex" profile perfectly.

My observation is that Amex has decided to flag nearly every type of behavior change, good or bad. If you charge and PIF $500 in March and April, and then charge and PIF $1500 in May, you could get flagged. If you do the opposite you could get flagged. If you PIF for two months and carry a balance in the third month, you could get flagged. Since almost nobody does the exact same thing every month, nearly everyone is a candidate to get flagged sooner or later. The F/R CSRs have even told cardholders that the plan is to eventually F/R everyone.

I don't know that you can "game" Amex like Cap1, unless you just don't mind handing over personal tax info or audits at a moment's notice. Personally, I'm way too old to have a company acting like a smothering mother or Big Brother, judging every transaction on my account. Practically, if you plan to use an Amex card for purchases or BTs, you absolutely need to have backup cards in case your account gets suspended without warning. That's the bottom line.