topic Re: Another Amex Limbo Story in Credit Card Applications

Another Amex Limbo Story

Anonymous — Thu, 31 Aug 2017 01:15:01 GMT

Greetings all,

Over the last two months I've been looking at getting back in the credit game and lurking on this forum has given me great insights. Proud to say I've got an EX score of 727, a Discover IT, and an Elan card through my local bank.

But this story is about the third card I apped, the BCE, which has been in progress status for almost two months now.

To make my backstory short, I was an AU on two of my parents cards for 10 years. Never used them, as I've been almost entirely cash-and-check only for years now. Guess all the warnings about the dangers of credit cards and wariness of electronic payments stuck. Plus, I'd only ever heard of points and airline miles based cards, so I never had any interest until my brother pointed out to me shockingly recently that cashback cards exist. So off I go building my own credit.

Problem 1: Both parents closed those cards a year ago for various reasons. Despite perfect records for both showing on my report, my FICO score apparently disappeared. Well, I figure my local small regional bank, having known me for 6 years, might work out. Turns out they outsource to Elan, so I get the usual 7-10 day message and don't get my hopes up. (Turns out I got approved yesterday 8 weeks later; still waiting to get the welcome pack!)

App #2, Discover Student IT since they apparently count grad students. Approved, no HP, $500 limit. I'll take it. Statement cut 3 days after I recieved it and my FICO score reappears at 727, AAoA 6 years. I figure I'm on a roll, and since 90% of my spending is at a local co-op that takes Amex, I try for the BCE.

And there's where it gets interesting.

Problem #2: As I mentioned, I'm in grad school. For the past two years, I've been living off of savings, some freelance work, and disbursements directly to school, so I didn't need to file taxes in 2014-2015. About halfway through last year my finances shifted and am now reporting about $90k in income with the same in assets, and hell, if I understand correctly, I could have even thrown my SO's into the equation. So I was conservative about this on all 3 apps, and figured I'd be in the clear.

Nope, I get hit with income verification right off the bat. Since the situation changed late in the year and I filed for $37K last year, I was slightly nervous. And I wait about a week and a half before the online status changes to declined. Instead of a decline letter, attached was a form letter telling me to fax in address verification. I take the time to write out a nice letter explaining the above, and fax it in with bank statements, utility bills, a copy of my ID, the works.

6 times. Six freaking times the fax doesn't go through. So I mail it all in and give a call a week later.

Their answer for the denial: Could find neither a credit report or tax returns for 2015. Not last year, mind you, but the year before, when I didn't file. "That's a problem between you and the IRS," the CSR says. "Don't call us again for a month." Okay then. Another callback and I get a more sympathetic rep who puts me in for recon. Another 4506. I try faxing in my other documents again and it goes through!

Another week goes by, so another call. "We're still waiting on the 4506 to get back from the IRS." 'Were the other documents I sent recieved by this office?' No, send them again. Another fax.

Yet another week. No dice. Hasn't been looked at yet. I mention the FICO score issue and they make note. 24-48 hours. 2 days lapse, so I call again. Same story, ad infinitum, for another two weeks. My last call was yesterday--that's 8 weeks--and I got a vague answer suggesting that they might have gotten my fax, which I better hope they have, since only one in 6 attempts seems to go through. But still nobody's even looked at the app.

So I'm hoping I'm not stuck in 4506 limbo as another older poster went through. I'm just exceptionally disappointed at American Express' giving me vague or unhelpful answers, and attempting to pull 2015 returns. I understand they need to do their due diligence, but this seems ridiculous. I'm half tempted to have them withdraw the app and start anew.

So that's my small rant. I posted this on Reddit's credit card board not long ago, and most replies seemed to gloss over the details and respond to the student/no FICO score points and suggest I go for a secured card. Nope, I'm in my 30s with verifiable income and assets, my score returned before I apped (with no instant denial), and I've got 2 cards in my wallet, so I'm not starting completely from scratch. I just don't want to get lost in Blue purgatory.

Re: Another Amex Limbo Story

Appleman — Thu, 31 Aug 2017 01:19:51 GMT

I like AMEX and all but there are PLENTY of card issuers out there that will give you credit. I am not sure it would be worth it to me....

But hoping you get out of Blue Purgatory!

Re: Another Amex Limbo Story

Anonymous — Thu, 31 Aug 2017 21:28:25 GMT

@Appleman wrote:
I like AMEX and all but there are PLENTY of card issuers out there that will give you credit. I am not sure it would be worth it to me....
But hoping you get out of Blue Purgatory!

I agree wholeheartedly... There is plenty to choose from and I also hope OP gets through one day...

Re: Another Amex Limbo Story

Anonymous — Thu, 31 Aug 2017 22:36:52 GMT

Much appreciated! Yes, I was ecstatic to get approved on the spot for Discover, and even more for Elan once they took their sweet time, since I understand they're also a bit of a white whale. At least the Elan has that nice blue Amex logo on the front so I can pretend I'm part of the club. I'm happy with those two cards for the time being, racking up the rewards points and watching my score soar. Its just the wait on Amex that's killing me.

Re: Another Amex Limbo Story

Anonymous — Tue, 05 Sep 2017 17:47:17 GMT

Update: looks like the second 4506 finally went through this morning, and despite all of my faxes, my app status went to address verification! I'm taking that as a good sign and hoping I don't get the bank letterhead runaround I've heard of before.

Re: Another Amex Limbo Story

Anonymous — Tue, 05 Sep 2017 17:51:00 GMT

@Anonymous wrote:
Update: looks like the second 4506 finally went through this morning, and despite all of my faxes, my app status went to address verification! I'm taking that as a good sign and hoping I don't get the bank letterhead runaround I've heard of before.

Definately a good sign.. Keep us posted on how it goes.

Re: Another Amex Limbo Story

Anonymous — Wed, 06 Sep 2017 16:22:01 GMT

Update #2:

App status changed to Cancelled last night. Called in again, asked to submit another 4506, to which I said I've already submitted it twice. The gentleman was reassuring that sometimes apps go to cancelled temporarily while they're working on it and to sit tight. The suspense is killing me. At least with Elan, I sent them a form and heard absolutely nothing for 6 weeks until I actually got the card, whereas Amex likes to tease you with misleading and incomplete status info. I don't know how many times I've uploaded docs through their site but recieved no confirmation that they went through.

Lesson learned, have your credit file airtight before applying with these guys. At least it seems the benefits pay off once they grant you the honor of that card with the little blue badge.

But hey, at least my Elan has it and I can pretend I'm part of the club for the time being.

Re: Another Amex Limbo Story

Anonymous — Wed, 06 Sep 2017 17:01:55 GMT

Lord ha' mercy, I'm not willing to work that hard for ANY lender. 8 weeks for Elan?!? Crimany, it's not like you're buying a $1 million home, it's a credit card. When you look at the time & administrative expense internally at the lender, it's boggling.

Re: Another Amex Limbo Story

Anonymous — Wed, 06 Sep 2017 17:57:47 GMT

Lord, I know. I'm giving Elan a pass, since they manually review everything and work with the member bank for verification. At least they didn't tease me like this and gave a nice fat starting limit. And Discover at least gave me the benefit of the doubt with a toy limit card for the time being.

It astounds me the amount of paper mailed to me and man-hours spent on the phone sorting all this out that Amex has expended. I honestly wouldn't be disappointed if they just declined me outright and let me reapply in a few months time rather than insist I send 8 million faxes.

And don't get me started on Blispay and their bizarre verification process. I'm debating calling them too, but I don't want to put in anymore effort when I have two cards I like.

Re: Another Amex Limbo Story

Blackswizz750 — Wed, 06 Sep 2017 18:19:18 GMT

I would probably pass on any lender putting me throught these hoops for a credit card. The club is not that exclusive and you can find many other lenders who want to grant you credit. Move on and have them chase you later.

Re: Another Amex Limbo Story

Anonymous — Wed, 06 Sep 2017 19:21:55 GMT

@Blackswizz750 wrote:
I would probably pass on any lender putting me throught these hoops for a credit card. The club is not that exclusive and you can find many other lenders who want to grant you credit. Move on and have them chase you later.

A-FREAKING-MEN! I will tell any lender to pound sand if other documentation is not sufficient for a CC. Yes a bank needs to protect risk but obtaining a 4506T is not the be all, end all of giving them assurance. Because if they want income verification you can easily supply that with W2's, pay stubs, and deposits on your checking statement.

Re: Another Amex Limbo Story

Anonymous — Thu, 07 Sep 2017 20:39:11 GMT

Update 3: Went back to in progress. Crossing my fingers this goes through before the weekend. No HP on EX yet, and my other cards should be posting today.

Also tried calling Blispay again, no go on verification recon. Told me to go for a secured card, even after I said I already have two cards open. They can, as you all are fond of saying, pound sand (never heard that phrase before joining this forum, I've got to start using it).

I'm strangely okay with the 4506 as verification, as I don't recieve paystubs or a W2 (disbursments, remember) and even my deposits in my primary account are all over the place. At least they don't use a third-party processor for it.

Re: Another Amex Limbo Story

Anonymous — Fri, 08 Sep 2017 01:14:15 GMT

Final update: Approved, this afternoon when I went to see if I needed another call. Invited to create an account online and couldn't do that, got transferred 6 times on the phone between CS and New Accounts. And so the cycle begins again...so no idea what my CL is.

But I'm happy. Got all 3 cards I want with virtually no history. Disco for restaurants+general spend, WaFed/Elan/USBank/whatever for bill pay, BCE for groceries. For everything else, there's (debit) MasterCard.

In light of the EQ data breach today, I'm locking everything down and going into the garden. Looking forward to seeing my AAoA go back to 10 years again! Now excuse me while I go tend my actual garden. I've got some Poblanos that need picking.

Re: Another Amex Limbo Story

UncleB — Sat, 09 Sep 2017 22:51:13 GMT

This thread is locked and closed to new messages.

New thread can be found here: http://ficoforums.myfico.com/t5/Credit-Card-Approvals/Three-for-three-BCE-Approved/m-p/5044316