topic Re: What should I do if declined by a weird reason? in Credit Card Applications

What should I do if declined by a weird reason?

Anonymous — Sun, 02 Feb 2020 03:34:51 GMT

Hi guys,

I just got declined for AMEX Platinum card. The reason is interesting...

The amount currently outstanding on your American Express account(s) is too high relative to the income you provided on your application.

I really have no idea about that...

My current FICO scores are: EX 724, EQ 731, TU 714... And AMEX just started to SP my credit report twice a month. At the point that I applied for Platunum Card, My EX FICO was 719 and I have already had 2 AMEX Credit Card: Marriott Brilliant (CL 3100) and EDP (CL 2000)... However, those cards have been maxed out (3000/3100 and 1300/2000) by 3 air tickets and my car insurance renewal. I just planned to repaid those balances before the statement cuts but i still got declined for Platinum card...

Is there anyway can help?

Thanks!

Re: What should I do if declined by a weird reason?

seattletravels — Sun, 02 Feb 2020 03:39:42 GMT

Not really a weird a reason. Sounds like you applied when you have other cards at 90%+ utility. I'd pay those off if you can and then possibly request a recon.

Re: What should I do if declined by a weird reason?

Anonymous — Sun, 02 Feb 2020 03:47:19 GMT

Your Amex ultilization is very high at the moment. 97% on your Marriott card and 65% on your EDP. You should pay them down or off and try again in a few months.

Re: What should I do if declined by a weird reason?

Brian_Earl_Spilner — Sun, 02 Feb 2020 03:46:53 GMT

I agree, it's not weird. Your applying for a card that is required to be paid in full each month, but your 2 other cards with them are maxed out. Based on your income, they don't believe you can pay them and the Platinum off.

Re: What should I do if declined by a weird reason?

Jnbmom — Sun, 02 Feb 2020 04:39:52 GMT

It's not weird, you have 2 cards with them , both with high balances and they don't feel comfortable extending you more credit.

Pay your balances down and try again in 6months or so.

Re: What should I do if declined by a weird reason?

Anonymous — Sun, 02 Feb 2020 04:51:41 GMT

It's not hard for me to pay off those debt at all... I used to pay off my debt to 1% utilization before statement cuts... Will a recon causes a HP?

Re: What should I do if declined by a weird reason?

Anonymous — Sun, 02 Feb 2020 04:52:42 GMT

Emmm I have paid off those debt... but how long should i wait? because i some big purchase to make and i wanna use that card so that i can earn the SUB...

Re: What should I do if declined by a weird reason?

Anonymous — Sun, 02 Feb 2020 05:16:26 GMT

@Anonymous wrote:
It's not hard for me to pay off those debt at all... I used to pay off my debt to 1% utilization before statement cuts... Will a recon causes a HP?

You can call the application status line 1-800-567-1083 for them to review your application. Recon chance is slim with Amex. Should still be a SP.

I would wait until your payment reflect on your credit report. Wait 3-4 weeks after Amex update your FICO score on their site to reapply because Amex uses the SP of your report that lags behind.

Re: What should I do if declined by a weird reason?

AverageJoesCredit — Sun, 02 Feb 2020 12:56:37 GMT

Just want to add that its often a mistake to think Amex will give another Amex because one has so and so Cards from them already. Having one Amex doesnt mean another is easy to get nor does it mean sp approval either. As much dps we have on Amex, everyones experience is still ymmv and very profile specific, imho.

Re: What should I do if declined by a weird reason?

Anonymous — Sun, 02 Feb 2020 15:08:31 GMT

Pay down your high utilization, then wait a couple of cycles to report (with the new lower balance). Check the pre-qualified cards on your account page and if your desired card pops up, go for it.

Regardless, high utilization is always a red flag for every lender.

Re: What should I do if declined by a weird reason?

Anonymous — Sun, 02 Feb 2020 15:13:36 GMT

The interesting thing is my utilization with Amex is always low... and this high statement balance hasn’t been reported to credit bureaus (my statements haven’t cut yet...) So that really surprised me...

Re: What should I do if declined by a weird reason?

Brian_Earl_Spilner — Sun, 02 Feb 2020 15:25:17 GMT

If the amount is unusually high, that's just another red flag.

Re: What should I do if declined by a weird reason?

Anonymous — Sun, 02 Feb 2020 15:30:00 GMT

But I usually use my card heavily and pay down debt before statement cuts... is that a bad hobby?

Re: What should I do if declined by a weird reason?

wingennis — Sun, 02 Feb 2020 15:58:54 GMT

@Anonymous wrote:
But I usually use my card heavily and pay down debt before statement cuts... is that a bad hobby?

It is not a bad hobby if you are playing a "long game". It is best practice not to apply for a card with a lender if you have current high balances even if you intend to pay them before the statement cuts. Even if they aren't on your statement, they can see what is going on with your accounts. Maxing out credit lines and then applying for new credit is red flag related to bust out behaviors.

It wasn't clear earlier in the thread that your statements hadn't cut yet. That changes the picture slightly.

Re: What should I do if declined by a weird reason?

M_Smart007 — Sun, 02 Feb 2020 16:12:39 GMT

@Anonymous wrote:
Emmm I have paid off those debt... but how long should i wait? because i some big purchase to make and i wanna use that card so that i can earn the SUB...

OP, I would just check the Platinum Pre-qual on their site about once a week to see if you are pre-qualified?

I think paying those balances down is going to be key going forward.

Good Luck to you!

Re: What should I do if declined by a weird reason?

CreditInspired — Sun, 02 Feb 2020 20:24:03 GMT

@Brian_Earl_Spilner wrote:
I agree, it's not weird. Your applying for a card that is required to be paid in full each month, but your 2 other cards with them are maxed out. Based on your income, they don't believe you can pay them and the Platinum off.

^^^ this

Re: What should I do if declined by a weird reason?

Meanmchine — Mon, 03 Feb 2020 04:08:48 GMT

Pay down your cards if you want another Amex card

Your denial reason is very self explanatory. Pay them down and reapply in 30 days

Re: What should I do if declined by a weird reason?

Anonymous — Tue, 17 Mar 2020 00:32:47 GMT

Thank you all. Got Approved by recon after paying down the debts

Re: What should I do if declined by a weird reason?

newfossil — Tue, 17 Mar 2020 00:32:50 GMT

Congratulations!

Re: What should I do if declined by a weird reason?

AllZero — Tue, 17 Mar 2020 00:39:19 GMT

@Anonymous wrote:
Thank you all. Got Approved by recon after paying down the debts

Congratulations on your approval!