topic Re: AMEX Financial Review: DO NOT BE SCARED in Credit Cards

AMEX Financial Review: DO NOT BE SCARED

DangerNoodle — Sun, 07 Oct 2018 06:40:06 GMT

I just wanted to ease some peoples' fears of the dreaded financial review by AMEX.

I first grew wary of the FR by browsing these forums. I lived in fear that my accounts may be shut down by AMEX if I ever got hit by a FR.

Last week, just two days after being approved for an Amex Everyday card, I was hit by an FR and was told to send in tax documents and bank statements. I immediately faxed the required documents, and after four business days, my accounts were unfrozen and I was actually given a few credit line increases. My BCE limit was raised to $10,000, my Delta Skymiles limit was raised to $15,000, and the $2,000 limit that I was approved for on my Everyday card was raised to $8,000.

What I wanted to discuss here is that as long as you haven't lied on your applications and you're not doing anything sketchy, nothing bad will come of a FR. In my case, only good came out of it! Amex just wants to make sure that you're actually able to pay off the credit lines you've been granted, that's all. The agent I was assigned was very informative, and told me that FRs are triggered when the computer thinks you're a potential credit risk. All Amex wants to know is that you have income and you're able to pay your bill reasonably. The FR is not meant to haunt you, it's just for your protection and Amex's protection.

The moral of the story here is: Don't fear or dread an FR. Promptly submit the required documents and your accounts will be restored in no time (assuming you haven't lied or done anything sketchy). In my case, you may actually be given some increases if the agent deems it fit. Keep in mind, I have no late payments and I'm only repoting $25,000 in income to Amex.

Hope this helps some people!

Re: AMEX Financial Review: DO NOT BE SCARED

CreditInspired — Sun, 07 Oct 2018 09:33:03 GMT

Congrats on the CLIs. Awesome!

For me personally, it’s not the FR; it’s the request for 4506T. I just don’t want to provide that kind of detailed info. Paystubs, W2s—that’s fine. And, I definitely have not lied about my income or done anything sketchy. Just no 4506T

Re: AMEX Financial Review: DO NOT BE SCARED

UpperNwGuy — Sun, 07 Oct 2018 09:46:13 GMT

Is the 4506T always a part of the Amex financial review? Does any other lender ask for a 4506T? Seems pretty intrusive, but I used to have to grant access to my credit reports and tax returns as part of background investigations for security clearances.

Re: AMEX Financial Review: DO NOT BE SCARED

CreditInspired — Sun, 07 Oct 2018 10:00:02 GMT

The only time I’ve been asked for a 4506T is when I requested a 3X CLI from $15K to $45K on AmX. However, I kept lowering the CL request and at $25K, I was approved w/o having to do the 4506T.

I can’t recall if other lenders request this or not.

Yep, for a security clearance or to buy a house, I understand a 4506T request. Just not for a CC.

Re: AMEX Financial Review: DO NOT BE SCARED

fuzzle — Sun, 07 Oct 2018 10:58:05 GMT

@DangerNoodle wrote:
The FR is not meant to haunt you, it's just for your protection and Amex's protection.

Now that they know you'll pay they can lower the APR to 5% right?

Re: AMEX Financial Review: DO NOT BE SCARED

Cred4All — Sun, 07 Oct 2018 12:32:43 GMT

Thanks for the write-up DangerNoodle.

It's definitely helpful to read how smooth the process works when it does in fact work as its designed. Obviously once they verified the information you provided, you were rewarded in the end. Always pays to be honest! As others were speaking about for clearances etc. it's very much a no-brainer that if you're submitting documentation to credit bureaus regarding income, and that income is not truly accurate, they will and do find out (Govt entities, CRA's, etc.) so it's absolutely ridiculous to ever report income outside of what you earn. As stated here already, they do a review to confirm you can in fact afford your credit line to protect both you and them. Good stuff, good review!

Re: AMEX Financial Review: DO NOT BE SCARED

AverageJoesCredit — Sun, 07 Oct 2018 13:03:31 GMT

Thanks for sharing op Im stunned that Amex has given you 33K in credit lines on 25k income. Gives me hope

Re: AMEX Financial Review: DO NOT BE SCARED

HeavenOhio — Sun, 07 Oct 2018 13:25:55 GMT

This looks like a request for income verification rather than a financial review. Or am I missing something?

Re: AMEX Financial Review: DO NOT BE SCARED

Peteyglad — Sun, 07 Oct 2018 13:30:50 GMT

@HeavenOhio wrote:
This looks like a request for income verification rather than a financial review. Or am I missing something?

The OP mentioned that after 4 business days his accounts were unfrozen. To me that definitely sounds like a FR vs just income verification.

Re: AMEX Financial Review: DO NOT BE SCARED

Anonymous — Sun, 07 Oct 2018 13:41:26 GMT

@DangerNoodle wrote:
All Amex wants to know is that you have income and you're able to pay your bill reasonably. The FR is not meant to haunt you, it's just for your protection and Amex's protection.

Just for Amex's protection, not yours!

Re: AMEX Financial Review: DO NOT BE SCARED

Brian_Earl_Spilner — Sun, 07 Oct 2018 13:43:11 GMT

Can someone explain to me what the big deal is with a 4056T? Amex already has your personal info from when you applied. People are willing to give their paystubs, bank statements, investment statementa, and W2. So what if they get a copy of your taxes? What other info will they get that you aren't willing to give already? They're just verifying that your stated income euals what you really make. I can see it being a problem if you lied about your income or claimed household income as your own, but I don't see the big deal.

Re: AMEX Financial Review: DO NOT BE SCARED

coldfusion — Sun, 07 Oct 2018 13:48:04 GMT

@CreditInspired wrote:
I can’t recall if other lenders request this or not.

Citi has been known to do it for new apps, if you refuse the app is declined.

Re: AMEX Financial Review: DO NOT BE SCARED

Anonymous — Sun, 07 Oct 2018 13:51:32 GMT

@Brian_Earl_Spilner wrote:
Can someone explain to me what the big deal is with a 4056T? Amex already has your personal info from when you applied. People are willing to give their paystubs, bank statements, investment statementa, and W2. So what if they get a copy of your taxes? What other info will they get that you aren't willing to give already? They're just verifying that your stated income euals what you really make. I can see it being a problem if you lied about your income or claimed household income as your own, but I don't see the big deal.

As a simple example, you might have applied using just your own income. If you are married filing jointly, the transcript will include information from your spouse, which he/she may not think is any of Amex's business.

Re: AMEX Financial Review: DO NOT BE SCARED

CreditInspired — Sun, 07 Oct 2018 13:59:18 GMT

@AJC

I was thinking the same thing.

Once my AmX is a year old in March2019, I’m definitely requesting the 3X again.

Re: AMEX Financial Review: DO NOT BE SCARED

CreditInspired — Sun, 07 Oct 2018 14:02:18 GMT

Oh tons have been written on the pros, cons, yays, and nays.

Do a search on 4506T

Re: AMEX Financial Review: DO NOT BE SCARED

Brian_Earl_Spilner — Sun, 07 Oct 2018 14:13:05 GMT

@Anonymous wrote:
@Brian_Earl_Spilner wrote:
Can someone explain to me what the big deal is with a 4056T? Amex already has your personal info from when you applied. People are willing to give their paystubs, bank statements, investment statementa, and W2. So what if they get a copy of your taxes? What other info will they get that you aren't willing to give already? They're just verifying that your stated income euals what you really make. I can see it being a problem if you lied about your income or claimed household income as your own, but I don't see the big deal.
As a simple example, you might have applied using just your own income. If you are married filing jointly, the transcript will include information from your spouse, which he/she may not think is any of Amex's business.

That's a good example. Personally, I wouldn't care if they had my info, but my wife would. Anything else?

Re: AMEX Financial Review: DO NOT BE SCARED

Brian_Earl_Spilner — Sun, 07 Oct 2018 14:14:07 GMT

@CreditInspired wrote:
Oh tons have been written on the pros, cons, yays, and nays.

Do a search on 4506T

Thanks, I'll do that. The only time I see it mentioned here is basically in amex threads with a rare mention in regards to other banks.

Re: AMEX Financial Review: DO NOT BE SCARED

UncleB — Sun, 07 Oct 2018 14:32:06 GMT

@Brian_Earl_Spilner wrote:
@Anonymous wrote:
@Brian_Earl_Spilner wrote:
Can someone explain to me what the big deal is with a 4056T? Amex already has your personal info from when you applied. People are willing to give their paystubs, bank statements, investment statementa, and W2. So what if they get a copy of your taxes? What other info will they get that you aren't willing to give already? They're just verifying that your stated income euals what you really make. I can see it being a problem if you lied about your income or claimed household income as your own, but I don't see the big deal.
As a simple example, you might have applied using just your own income. If you are married filing jointly, the transcript will include information from your spouse, which he/she may not think is any of Amex's business.
That's a good example. Personally, I wouldn't care if they had my info, but my wife would. Anything else?

Your dependent children's social security numbers.

If there was a data breach, since your dependents aren't Amex customers (you are) who would be responsible? It's not clear, but I would hate to find out.

I have no kids, but that would be a show-stopper for me.

Also any line-item deductions (i.e. medical expenses you claim) would be shown to them, which some people might object to.

Re: AMEX Financial Review: DO NOT BE SCARED

jc2 — Sun, 07 Oct 2018 14:48:37 GMT

Synchrony is known to ask for the 4506T....Many of us have recieved the "blue envelope" requesting this

Re: AMEX Financial Review: DO NOT BE SCARED

adelphi_sky — Sun, 07 Oct 2018 15:12:46 GMT

I disagree with a FR. A credit report is as intrusive as you can get. If your credit score is an 850 then it shouldn't matter what your income is. They can always do an FR on someone making $250k/yr with an 800 FICO and then they lose their job or get sick or a family member gets sick and have to file for bankruptcy or they become late.

Some people get bonuses every year and if one year the company decides not to give any, the person now may make $10k less for that ONE year. Should they be a greater risk over $10k for one year? I don't think so.

It's all a farce. Stick to the FICOs. The future can never be predicted with any accuracy. On the other hand, credit card companies can lock you out of credit, reduce your credit line, or close your account altogether.

To me, an FR from a credit card company that I have low utilization and a perfect payment history for would be an insult and would compel me to close my account. I don't care how much credit line I have with them. It's like what else do you want me to do? I can't stand situations where I have to walk on eggshells when I'm doing what I'm supposed to do and playing by the rules. If I have to worry about some FR every year, it's not worth it. I'd rather go back to cash. You don't need a FR for that. :-)