topic Re: how to avoid AMex FR in Credit Cards

how to avoid AMex FR

rred4 — Tue, 13 Nov 2007 21:47:35 GMT

I still havent recieved my Delta Gold, but the way everyone is talking im worried about getting it and having any problems with freezes and FR. What triggers this

Re: how to avoid AMex FR

MidnightVoice — Tue, 13 Nov 2007 21:54:00 GMT

rred4 wrote:

how to avoid AMex FR?

1 Don't get an AMEX card

2 If you have one, don't use it.

Re: how to avoid AMex FR

haulingthescoreup — Tue, 13 Nov 2007 22:00:19 GMT

Put yourself in the mind of a credit card company. (scary!) They are trusting that if they allow you to borrow up to $2000, or whatever your CL is, that you will promptly pay it back, without them having to beg and plead and all. If you are a really cautious and conservative company like American Express, you will frequently do soft inquiries for several months on your new customers to see if they are starting to skate on thin ice financially --for instance, they get a bunch of other CC's all at the same time, immediately load them up with charges, and make minimum payments at the last possible minute or even late.

As a lender, you're going to get alarmed. And if you made it part of the terms and conditions of the card you gave these new customers, you will do a financial review to review their documented income on their tax forms and pay stubs, and add up their mortgage payments, minimum payments to the other CC's and so forth, and decide if you think that these customers can afford to carry their credit and are really worth keeping. If you, the lender think that the customers are too risky, then you will either reduce their credit availability or cancel it altogether.

So back to being the customer, don't do things that scare the lender. Imagine them looking at your credit report at any given time, and be respectable and prudent and responsible and all those other Girl Scout/ Boy Scout virtues that make you look like a good credit risk and a customer worth keeping and eventually giving CLI's to.

Re: how to avoid AMex FR

fused — Tue, 13 Nov 2007 22:06:31 GMT

While I do not know every trigger, these seem to be the most common ones in no particular order.

- Tapping the luv button (online CLIs) too often, asking for big CLIs too often

- App for too many CC's in a short period of time (Amex and non Amex) and requesting CLIs on them (Amex CCs)

- Out of habit spending and/or paying (making large payments, then in future months only paying the minimum due)

- Carrying large balances on your Amex revolving cards

- Carrying large balances on your non Amex revolving cards

- When using PIF charge cards, Amex gives a flex pay option on your charges and allows you to roll (your PIF charges) them into a revolving account. Abusing this is a sure fire way to get an FR. The flex plan is designed to pay off charges over a few months and not years.

- It's rumored now that making a large BT to an Amex card and not making sizable payments on it can trigger a FR...I don't know this to be fact yet.

Re: how to avoid AMex FR

Anonymous — Tue, 13 Nov 2007 22:09:21 GMT

fused wrote:
While I do not know every trigger, these seem to be the most common ones in no particular order.

- Tapping the luv button (online CLIs) too often, asking for big CLIs too often

- App for too many CC's in a short period of time (Amex and non Amex) and requesting CLIs on them (Amex CCs)

- Out of habit spending and/or paying (making large payments, then in future months only paying the minimum due)

- Carrying large balances on your Amex revolving cards

- Carrying large balances on your non Amex revolving cards

- When using PIF charge cards, Amex gives a flex pay option on your charges and allows you to roll (your PIF charges) them into a revolving account. Abusing this is a sure fire way to get an FR. The flex plan is designed to pay off charges over a few months and not years.

- It's rumored now that making a large BT to an Amex card and not making sizable payments on it can trigger a FR...I don't know this to be fact yet.

All of this and what hauling wrote too.

Re: how to avoid AMex FR

haulingthescoreup — Tue, 13 Nov 2007 22:09:56 GMT

You know, if CCC's are going to offer low APR or 0% APR on balance transfers, and then think that it's suspicious that you're taking advantage of that interest rate, then they ought not to offer them. That's a bit too much like Lucy holding the football for Charlie Brown, and then yanking it away.

Re: how to avoid AMex FR

fused — Tue, 13 Nov 2007 22:21:55 GMT

haulingthescoreup wrote:
You know, if CCC's are going to offer low APR or 0% APR on balance transfers, and then think that it's suspicious that you're taking advantage of that interest rate, then they ought not to offer them. That's a bit too much like Lucy holding the football for Charlie Brown, and then yanking it away.

Yes, Exactly! I have read at other forums about this BT and Amex thing but I'm having some trouble believing it. The source is questionable at best.

Re: how to avoid AMex FR

haulingthescoreup — Tue, 13 Nov 2007 22:43:59 GMT

@fused wrote:
haulingthescoreup wrote: You know, if CCC's are going to offer low APR or 0% APR on balance transfers, and then think that it's suspicious that you're taking advantage of that interest rate, then they ought not to offer them. That's a bit too much like Lucy holding the football for Charlie Brown, and then yanking it away.
Yes, Exactly! I have read at other forums about this BT and Amex thing but I'm having some trouble believing it. The source is questionable at best.

Well, one thing about Amex is that I think I haven't seen any 0% BT's from them, or maybe only a limited offer. Theirs seem to run around 3-4%, and I think that they are expecting that they be paid off in 4-6 months max. Whereas to me, a 0% offer from other companies is a statement that it's OK to just park it and leave it as long as possible, as they make money off of you on the initial BT fee, and they hope that you won't pay it all off in time, anyway.

Re: how to avoid AMex FR

Anonymous — Tue, 13 Nov 2007 23:12:23 GMT

Great info everybody is providing. Very accurate.

Re: how to avoid AMex FR

Anonymous — Tue, 13 Nov 2007 23:29:46 GMT

Regarding the freeze (Amex referred to it as a 'Hold') on my card for Identity Verification, as I posted a few days ago it has been lifted.

Since then I've used it with no problems & now have a balance of over $600. I'll PIF once the statement hits.

Hoping I've jumped thru enough hoops for them.

Re: how to avoid AMex FR

haulingthescoreup — Tue, 13 Nov 2007 23:37:58 GMT

Anderson, your thing seemed different from the financial reviews. Did you ever figure out what on earth it was all about?

You haven't been shopping for washing machines, have you??

Re: how to avoid AMex FR

Anonymous — Tue, 13 Nov 2007 23:47:12 GMT

Ha! No washing machines....that's your territory.

No, don't know what the trigger was. I believe it was CynicalOne who suggested it was the luck of the draw. Lucky me.

haulingthescoreup wrote:
Anderson, your thing seemed different from the financial reviews. Did you ever figure out what on earth it was all about?

You haven't been shopping for washing machines, have you??

Re: how to avoid AMex FR

Anonymous — Wed, 14 Nov 2007 02:56:27 GMT

Howdy Folks,

I agree with most of the posts regarding FR. Having been FR, I hit all the triggers. I transfered close to $10K nearly maxing the card and received over $20K in credit in less than 3 days.

I passed the FR and nothing happened. I still have a VERY large balance on my blue card and this is the only card I use. I sometimes use my gold card but that's PIF. I don't make large ;payments but I do pay more than the amount owed.

I figure next March when my Stang is paid for, I will be making some serious payments to get that balance down.

I have not heard anything from AMEX regarding my balances. While I got a great rate, they are making a ton of money on my tail with interest!

I feel never being late and paying more than due will keep me in their good graces.

They are a credit card company and they make a lot of money of folks like us paying interest!

AMEX is my favorite credit card company and I plan on keeping my relationship with them rock solid.

I thank everyone for sharing their stories about AMEX. I have learned a lot.

A FR is not the end of the world, unless you don't pass.. LOL

Re: how to avoid AMex FR

Anonymous — Wed, 14 Nov 2007 03:03:49 GMT

ragcajun wrote:
Howdy Folks,

I agree with most of the posts regarding FR. Having been FR, I hit all the triggers. I transfered close to $10K nearly maxing the card and received over $20K in credit in less than 3 days.

I passed the FR and nothing happened. I still have a VERY large balance on my blue card and this is the only card I use. I sometimes use my gold card but that's PIF. I don't make large ;payments but I do pay more than the amount owed.

I figure next March when my Stang is paid for, I will be making some serious payments to get that balance down.

I have not heard anything from AMEX regarding my balances. While I got a great rate, they are making a ton of money on my tail with interest!

I feel never being late and paying more than due will keep me in their good graces.

They are a credit card company and they make a lot of money of folks like us paying interest!

AMEX is my favorite credit card company and I plan on keeping my relationship with them rock solid.

I thank everyone for sharing their stories about AMEX. I have learned a lot.

A FR is not the end of the world, unless you don't pass.. LOL

Thanks for a very informational post. And yes, I agree that as long as you pay more than minimum payments and you balance keeps going down you should be fine.

Re: how to avoid AMex FR

gNaRKiLL — Wed, 14 Nov 2007 04:32:01 GMT

I was planning on using my card to make all my bill payments so I can rack up the rewards hopefully they dont nail me with an FR, oh well I didnt lie about anything on my app so they can check me if they want.

Message Edited by gNaRKiLL on 11-13-2007 08:32 PM

Re: how to avoid AMex FR

Anonymous — Wed, 14 Nov 2007 08:05:58 GMT

I read every AMEX thread that pops up and it seems that a lot of people that get FR are those who initially applied and were approved for a Delta AMEX card with a CL usually around 1-2K. They then do the "Product Change" to the Blue Sky/Cash and then either ask for a CLI upon activation or on their 30 day mark.

I dont know why AMEX allows this "product change" as i honestly think this is really setting up their customers for failure. If they are barely getting approved for the Delta (When i say "barely" i am meaning getting approved with their lowest CL of 1K), then i dont see how they are allowing this change to a higher card.

I think if you stay within your means, IE you apply for a Delta then stay there. If you can apply for a Blue and get approved for that, then stay there. But if get a lower card then try to sneak to a higher card, then if you get FRed it is all on you.

Now if you applied for the Delta and say after 6 months to a year later, after you have some creditbility with AMEX and established yourself, then i would understand the "product change" to a higher card, but i think if you try this within the first 30 days you are wrong.

I have a Blue Cash myself (only 4 months old) with a CL of 20K and i keep roughly 2-3k on there and charge about 3-5K a month. I will/may PIF once my 0% runs out but right now i am trying to get them used to me spending a moderate amount on their card per month while maintaining a balance as well.

Again to each their own, but this is just another reason i think people are getting FRed.

Robo

Re: how to avoid AMex FR

kclb — Wed, 14 Nov 2007 08:12:27 GMT

Looks like I might be under review as well since I'm a newbie. I got a 2k CL. More than likely, I will probably stick to the Delta since I always wanted a Amex card and I was denied many times before. I just hope to establish a good history with them.

Re: how to avoid AMex FR

rred4 — Wed, 14 Nov 2007 09:33:51 GMT

sounds like very good advice, I got 3,400 cl . I will spend 1,000 a month then pay in full. I am only worried because my work history isn't so great and I just started my new job 3 months ago, but im going to stop the worrying and try to stay under the radar for 6 months. I will never ask for CLI because $3400 is more than enough than I need. Anything more is just to tempting

Message Edited by rred4 on 11-14-2007 01:33 AM

Re: how to avoid AMex FR

Anonymous — Wed, 14 Nov 2007 12:34:42 GMT

Using 1/3 of CL and PIF -
Amex loves you- after a few months of this they will CLI you.

@rred4 wrote:
sounds like very good advice, I got 3,400 cl . I will spend 1,000 a month then pay in full. I am only worried because my work history isn't so great and I just started my new job 3 months ago, but im going to stop the worrying and try to stay under the radar for 6 months. I will never ask for CLI because $3400 is more than enough than I need. Anything more is just to tempting

Message Edited by rred4 on 11-14-2007 01:33 AM

Re: how to avoid AMex FR

rred4 — Wed, 14 Nov 2007 18:22:59 GMT

I wonder why they dont ask for all this info before they approve