topic Re: will amex shut me down for too many new accounts? in Credit Cards

will amex shut me down for too many new accounts?

scottwagnon — Mon, 15 Nov 2010 21:13:22 GMT

i have an amex blue cash. i am doubting they would do this but just curious.

Re: will amex shut me down for too many new accounts?

haulingthescoreup — Mon, 15 Nov 2010 21:15:05 GMT

How many is "too many", and in what time frame?

How long have you had the Blue Cash?

How long have you had CC's in general? (college age vs 30 years of credit history)

Are you going to let balances report on any of the new cards?

The rule of thumb with American Express is don't startle them with any sudden moves until they've gotten used to you.

Re: will amex shut me down for too many new accounts?

Anonymous — Mon, 15 Nov 2010 22:50:09 GMT

How many new accounts have you opened?

Re: will amex shut me down for too many new accounts?

score_building — Tue, 16 Nov 2010 02:58:07 GMT

Many issuers, including Amex may object in the form of AA, if they decide a card holder has been opening up 'too many new accounts.'

Re: will amex shut me down for too many new accounts?

scottwagnon — Tue, 16 Nov 2010 00:16:55 GMT

what is AA?

Re: will amex shut me down for too many new accounts?

MarineVietVet — Tue, 16 Nov 2010 00:22:44 GMT

@scottwagnon wrote:
what is AA?

AA=Adverse Action such as account closure, CLD, etc.

Here is a list of commonly used Abbreviations.

From a BK years ago to:
EX - 9/09 pulled by lender 802, EQ - 10/10-813, TU - 10/10-774

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

Re: will amex shut me down for too many new accounts?

scottwagnon — Tue, 16 Nov 2010 00:38:21 GMT

ouch... i bet im cooked. i only had one bank card reporting when i was approved for amex blue cash on october 12. i have been approved for 7 other bank cards since then. yikes. i knew that this was not a good idea, but it didn't hit home until now.

my total debt across all of my 12 accounts is only 600 dollars. it was close to 2000 when i was approved for amex blue cash. i have been PIF on most of my cards, including amex blue cash. so i don't know what will happen now.

Re: will amex shut me down for too many new accounts?

mross1080 — Tue, 16 Nov 2010 00:54:01 GMT

Just be ready for the FR. Amex loves them. They check your previous 2 years of tax returns. As long as you where truthful on your application and your truthful to the rep who asks you questions you should be fine. Not saying your going to get a FR just be prepared if you do. I dont think ive read about anyone getting there account closed with matching info to back up income. At worst a spending limit cap. I know how much fun it is to go app crazy its hard to stop when your on a roll.

Re: will amex shut me down for too many new accounts?

scottwagnon — Tue, 16 Nov 2010 00:57:27 GMT

i thought FR was for amex charge cards.

Re: will amex shut me down for too many new accounts?

mross1080 — Tue, 16 Nov 2010 01:02:30 GMT

No they do it to all accounts. Charge, Credit, and Business

Re: will amex shut me down for too many new accounts?

smallfry — Tue, 16 Nov 2010 01:04:59 GMT

7? You're soup I am afraid.

Re: will amex shut me down for too many new accounts?

smc733 — Tue, 16 Nov 2010 01:06:06 GMT

Often lenders will call this "pyramiding" credit. When you substantially increase your credit in a short period of time, it looks as though you're suddenly in trouble and need credit to get by, which in turn makes it seem as if it is a risk for you not to pay it back.

This, may slip by, but don't be surprised if you end up with an FR.

Re: will amex shut me down for too many new accounts?

Anonymous — Tue, 16 Nov 2010 01:48:10 GMT

I'm interested in knowing how 7 new account openings will change your credit score.

Re: will amex shut me down for too many new accounts?

score_building — Tue, 16 Nov 2010 01:28:59 GMT

@smc733 wrote:
Often lenders will call this "pyramiding" credit. When you substantially increase your credit in a short period of time, it looks as though you're suddenly in trouble and need credit to get by, which in turn makes it seem as if it is a risk for you not to pay it back.

This, may slip by, but don't be surprised if you end up with an FR.

Re: will amex shut me down for too many new accounts?

MarineVietVet — Tue, 16 Nov 2010 02:03:30 GMT

@Anonymous wrote:
I'm interested in knowing how 7 new account openings will change your credit score.

7 new inquiries

7 new credit lines reporting

Lowering of AAoA

Re: will amex shut me down for too many new accounts?

Anonymous — Tue, 16 Nov 2010 02:57:09 GMT

I wouldn't stress out too much. The most important thing to do right now: Keep your balances at where they are! That is small! Very small! You said you only had a total of $600 report last month? If so, that sounds good. Pay off most of your balances before the statements cut and let only report a small amount! Keep doing that for a couple of months and you should be fine.Let only a couple of cards report a balance withthe bureaus and let the others report 0$. Amex doesn't care about FICO scores. They have their own risk factors. However, having balances on ALL cards, even if they are really small (a couple of dollars) will drive you FICO down a bit.

You might get an Amex FR or AA or not. Who knows? You might just be doing fine if you show you're not going into debt. It's hard to say.I also wonder if any of the new creditors will do an AA when they see your new credit file.

But then, see it as an experiment. As long as you're not doing anything stupid debtwise, you'll be fine and your score will recover over time. All the new accounts reporting will drop your scores considerably for a little bit, though.

Re: will amex shut me down for too many new accounts?

Red1Blue — Tue, 16 Nov 2010 03:14:58 GMT

How many is too many? It is a question. Couple of months ago, one night, I had little too much wine and added 12 new accounts. I know call me crazy. Amex did FR and I came out with flying colors. They did not close my accounts. Citi and Discover did not like and CLD'd my accounts. I was foolish and called UMB for CLI and they closed my account. It your call with Amex. It depends on your relationship with Amex and how long you have been a member. I have been a member with Amex since 1984. I guess that might mean some thing to Amex. Will they close your accounts in cold. Probably not. Perhaps FR.

Re: will amex shut me down for too many new accounts?

scottwagnon — Tue, 16 Nov 2010 03:39:52 GMT

'Citi and Discover did not like and CLD'd my accounts' OUCH. i have a new citi and new discover. ok. i guess i could accept a CLD.

Re: will amex shut me down for too many new accounts?

Gh0st — Tue, 16 Nov 2010 03:53:16 GMT

Sorry to hear . Could have been worse though. I actually applied to 3 new cards and got accepted so hopefully that doesn't stir any problems. Amex was one of the new cards too.

Re: will amex shut me down for too many new accounts?

haulingthescoreup — Tue, 16 Nov 2010 04:26:08 GMT

Que sera, sera.

Keep all your new accounts reporting $0. (Pay them off before statements drop for this to happen.) Don't do anything startling with the AmEx. You might fly under the radar. (This does happen.)

And in the meantime, go dig out your 1040 from last year and get your last 2 - 4 paystubs or deposit records. If you get F/R'd, it's not the end of the world, unless you lied about your income. It's a huge PITA, though.

And don't take a prospective GF or new boss out to dinner and try to put it on the AmEx. Not for now, anyway.