What's the deal with AmEx?

krmurrayjr10 · ‎06-26-2015

I'm currently rebuilding after a period of unemployment and lower income during the recession. From the second half of 2012 on, I have had no new chargeoffs/lates on any of my credit reports.

Within the past year, I opened new deposit accounts with Bank of America and Capital One (360), and following that, both banks have issued credit cards to me. The two cards from Cap One are unsecured and have small limits, and the limit on each card was increased after five months. The BoA card is the 99/500, and I expect I'll get the $99 back within a year or so.

With several years of clean history now, I tried applying for a simple AmEx card, and of course was abruptly turned down. I even escalated the application to their executive office, pointing to the clean history, and was rudely turned away.

While Cap One obviously caters to the whole credit spectrum, BoA is a prime lender, and both "big banks" have clearly made efforts to supply products that I need and to invest in me as a long-term customer.

AmEx, on the other hand, is a mystery. I don't need their prepaid products, as I already have deposit accounts, but a charge or credit card with them would be helpful, but they don't want anything to do with me. What's the deal? They're facing enough headwinds between the loss of the Costco account, the lawsuit earlier this year, and the poaching of affluent customers by the other issuers. And I know they're aware of it - just a few days ago I filled out an e-rewards survey that was clearly commissioned by AmEx, as it asked for perceptions of Amex compared to issuers including Chase, and whether I would consider each issuer when applying for a card.

Anonymous · ‎06-26-2015

Do you owe them money? They're known to hold a grudge.

crrredit · ‎06-26-2015

Sounds like you're making great progress. I try to focus on the positives and leave the disappointments behind. I have COs with AmEX, and at best I'm going to settle after they drop off in a couple months from the last CRA. Which means I'll probably never have an AmEx card. But I do have a Chase Freedom card now, and other cards so I don't really need an AmEx in my pocket to live the way I want to. If you don't have an unresolved history with them, just keep moving forward and some day they will start begging you to get a card. They will probably beg you to sign up for a revolving product before a charge card, but they will beg eventually. If you don't want to wait for that, just check their preapproval site from time to time. You may find you need/want their card less and less.

krmurrayjr10 · ‎06-26-2015

No, I'm an AmEx virgin ; )

Jeff532003 · ‎06-26-2015

What's your score Murray and do you have and BK or public records on your file? Amex will usually approve a charger down to 660 or so but the do not like BK and they also don't like open unpaid collections to other CC companies so either of those things are going to hurt you.
Don't feel bad about being turned away from the recon. Amex is known to not do it at all. They rely completely on the computer algorithms.
I was able to get my PRG charge in January of this year and my JetBlue revolver this month. JetBlue will end soon so hopefully I get PC'd to something else and then can apply with Barclay to get the miles all over again

krmurrayjr10 · ‎06-26-2015

No BK, no public records. 3 small unpaid chargeoffs that haven't fallen off yet, and I'm not inclined to pay them anything if doing so wouldn't affect my score, would run the risk of re-aging them, and would only marginally improve my chances of qualifying for something else. Theoretically, the CapOne and BoA cards (and a couple Comenity store cards with clean histories) are all I "need" anyway.

Anonymous · ‎06-26-2015

What are your scores?

krmurrayjr10 · ‎06-26-2015

I believe around or just under 600. Aside from the chargeoffs, I think I'm still being held back partially by a bunch of inqs in recent months to get the accounts I have now (the BoA alone cost 2, plus 2 more for CapOne) and an AAoA of not even 1 year yet.

And, I don't know if the "maxed out" balance on one or more of the chargeoffs is figuring into it, too.

There's little I can do about any of these other than wait.

Anonymous · ‎06-26-2015

Oh that's the problem. Your scores are too low. I would get them to at least 660. I apped with a 645 ex in April and got denied. I now have a 698ex and I'm still afraid to pull the trigger. I'm waiting until next month when I'm in the 700's. Wait a couple months and try again.

Anonymous · ‎06-26-2015

@krmurrayjr10 wrote:
No BK, no public records. 3 small unpaid chargeoffs that haven't fallen off yet, and I'm not inclined to pay them anything if doing so wouldn't affect my score, would run the risk of re-aging them, and would only marginally improve my chances of qualifying for something else. Theoretically, the CapOne and BoA cards (and a couple Comenity store cards with clean histories) are all I "need" anyway.

And therein lies the issue I would suspect. Often we are our own worst enemy in this credit game, thinking its *all* about the score, when in fact its about our overall profile, not just a score. When evaluating whether an item should be paid, you need to consider more than just your score, you need to consider how it makes your overall profile look. Credit scoring is mostly about revolving credit, and if you have unpaid revolving charge offs, thats a big red flag to some lenders - regardless of score.

"risk of re-aging" ... Hmmm. A total non-issue.