topic Re: AMEX BCE With Chargeoff? in Credit Cards

AMEX BCE With Chargeoff?

FicoTron — Tue, 06 Dec 2011 19:12:02 GMT

I want to apply for an AMEX revolving card. My AAoA is over 7 years, I have one 30 day late from over 6 years ago, and I have an unpaid chargeoff from over 5 years ago ($443). My EX score is about 700 i'm, not positive, I know that is the one that matters. My EQ is 772. Should I pay this chargeoff before I app? I've seen others getting approved with old negs. Or will they just deny me even with it paid?

Re: AMEX BCE With Chargeoff?

Anonymous — Tue, 06 Dec 2011 19:24:32 GMT

@FicoTron wrote:
Should I pay this chargeoff before I app?

Is this a charge off or a collection? If it were me, I'd offer to pay for the deletion of the negative information and, I would not pay if the company collecting the debt would not agree to delete it. If you only have one derogatory tradeline on your credit reports, I say deal with getting that GONE. Then, you should be able to app for any CC you like.

Re: AMEX BCE With Chargeoff?

FicoTron — Tue, 06 Dec 2011 19:38:55 GMT

PFD is not an option, it is with HSBC and they are pricks about reporting. It won't fall off until 4/13, which I am not willing to wait for...the question is weather or not AMEX will approve me even with it paid.

Re: AMEX BCE With Chargeoff?

CreditMuppet — Tue, 06 Dec 2011 19:43:02 GMT

@FicoTron wrote:
PFD is not an option, it is with HSBC and they are pricks about reporting. It won't fall off until 4/13, which I am not willing to wait for...the question is weather or not AMEX will approve me even with it paid.

I wouldnt waste an inquiry IMHO. Your AAOA is fine, the 30 day late is not a problem, but with that CO reporting paid or unpaid its going to be a denial for Amex.

Re: AMEX BCE With Chargeoff?

pizzadude — Tue, 06 Dec 2011 19:55:25 GMT

You might consider applying for an AMEX charge card first, then a revolver after 6 months or so. The charge cards are believed to be easier to obtain.

Re: AMEX BCE With Chargeoff?

tntexans72 — Tue, 06 Dec 2011 20:14:31 GMT

How does your EX report look in terms of inquiries?

I would say since it's over 5+yrs ago...you have a very good chance, even though I have read Amex is hard on CO or CA.

Having AAoA of 7yrs is a HUGE plus imo....

But I have seen ppl getting declined and approved so YMMV......and you don't know til you try.

Re: AMEX BCE With Chargeoff?

boomhower — Tue, 06 Dec 2011 20:52:46 GMT

I had two unpaid collections around five years old when approved for a BCP. They weren't credit cards but one is north of $2k. A CO may be different than a CA in there eyes though.

Re: AMEX BCE With Chargeoff?

Anonymous — Tue, 06 Dec 2011 21:02:51 GMT

@pizzadude wrote:

You might consider applying for an AMEX charge card first, then a revolver after 6 months or so. The charge cards are believed to be easier to obtain.

I applied for a Zync with a small medical collection reporting (about 1.8 years old). It's being disputed, so I don't know if that (or the fact that it didn't involve a credit card) made a difference, but I was approved.

Re: AMEX BCE With Chargeoff?

FicoTron — Tue, 06 Dec 2011 21:33:59 GMT

I appreciate the feedback. The debt I owe HSBC is not from a credit card. It was a rapid refund from H&R Block that the government didn't pay because I defaulted on school loans. I owe the debt, but maybe it helps my case that it wasn't a CC.

I look forward to more replies and see what other people have been approved/denied with AMEX apps.

Re: AMEX BCE With Chargeoff?

n777ua — Tue, 06 Dec 2011 22:25:22 GMT

Not to rain on your parade, but I just don't see you getting approved for Amex with a CO. Maybe...and thats a huge maybe...you might get the Zync, but I would be shocked if you were approved for the BCE. If your INQ's are low, I guess it never hurts to try, but I echo the poster from above who said not to waste your inq. Sorry

@FicoTron wrote:
I appreciate the feedback. The debt I owe HSBC is not from a credit card. It was a rapid refund from H&R Block that the government didn't pay because I defaulted on school loans. I owe the debt, but maybe it helps my case that it wasn't a CC.

I look forward to more replies and see what other people have been approved/denied with AMEX apps.

Re: AMEX BCE With Chargeoff?

Anonymous — Tue, 06 Dec 2011 23:17:10 GMT

You have a chance of approval if you apply. How big is the chance it you don't?

Re: AMEX BCE With Chargeoff?

Anonymous — Tue, 06 Dec 2011 23:19:55 GMT

Amex has been generous lately but an unpaid CO might be wasting an inq.

Re: AMEX BCE With Chargeoff?

Guava — Tue, 06 Dec 2011 23:24:53 GMT

@Anonymous wrote:
You have a chance of approval if you apply. How big is the chance it you don't?

That saying works when you're going after a girl or something, but in this case, it's not gonna work. The OP is apprehensive and rightly so, with unpaid charge-off, a decline from AMEX is very likely.

Re: AMEX BCE With Chargeoff?

n777ua — Tue, 06 Dec 2011 23:26:08 GMT

OP - have you tried the pre-approval app ?

Re: AMEX BCE With Chargeoff?

Anonymous — Tue, 06 Dec 2011 23:30:16 GMT

You guys are missing the point. The CO doesn't fall off til 2013, so what is the point in saving the inquiry if you have to wait til 2013 to apply anyway? Apply, and you have a chance at the card until they fr you or close it, or don't apply and.guarantee you don't get the card.and save.your 2 points on the fico.

Re: AMEX BCE With Chargeoff?

tntexans72 — Tue, 06 Dec 2011 23:35:58 GMT

AAoA is 7yrs...CO is over 5yrs old...it's worth a shot imo.

If yor EX inquiries are 0-2 within the L6 months, you got a better chance.

You are going to have different point of view on this topic.

The safest route is to use the Zync for 6 months than app and it will be smooth.

Re: AMEX BCE With Chargeoff?

Anonymous — Wed, 07 Dec 2011 00:08:23 GMT

@boomhower wrote:
I had two unpaid collections around five years old when approved for a BCP. They weren't credit cards but one is north of $2k. A CO may be different than a CA in there eyes though.

That's amazing! And, you got the "Preferred" not just the "Everyday." Wow!!!

Re: AMEX BCE With Chargeoff?

boomhower — Wed, 07 Dec 2011 03:08:02 GMT

@Anonymous wrote:
@boomhower wrote:
I had two unpaid collections around five years old when approved for a BCP. They weren't credit cards but one is north of $2k. A CO may be different than a CA in there eyes though.
That's amazing! And, you got the "Preferred" not just the "Everyday." Wow!!!

Yep, got it in the mail yesterday. FICO according to AMEX was ~715. Both of the CA were from apartment complex's. Also had one 30 day late from around 6 years ago. I was in a similar place as the OP and figured I had nothing to lose. I have plenty of credit cards but only one reward card in the Chase Freedom. I wanted to add one more before I go for a mortgage next year and this was the only thing that interested me at all. So I went for it. According to the Amex pre-approval I was only good for the Zync and Gold. The BCP was essentially an instant approval, I just had to call in and verify my address since I had recently moved. Once that was veried, instantly approved. I am in the highest interest rate bracket but I PIF so I could care less. They also matched my highest reporting card at $2k.

If memory serves the big collection is right at $2.5k.

Re: AMEX BCE With Chargeoff?

RyVision — Wed, 07 Dec 2011 06:57:09 GMT

To the original poster (and anyone else I spose lol). EVERYONE is rather correct that answered. It's unusual, but they're all correct. AMEX is a bit fickle, you could get either approved or denied. That's the answer you're wondering, the only place that can factually answer your question for certain is AMEX itself (along with it's in-house scoring system), I lean toward a decline but that doesn't really matter.

More than one person mentioned the issue of the CO remaining on your CR until 2013. If your inquires are low, the ding won't really matter. I had an erroneous CA on my reports that prevented me from getting AMEX at ALL. Once removed (by the state AG's intervention) no problem. YOU have 7 years of decent history behind you, not perfect but not non-existent or bad either.

IF I were in your shoes, I would apply, if they said no (they don't send someone to slap you, they only place an inq on your EX, maybe EQ also but rarely), then I'd try later (I did it with Zync, denied, waited 5 months, instant approval but at least I had my answer and why they said no the first time). DO NOT contact those that hold the CO however or you will no doubt re-age the account and it will stay on your report that much longer.

EDIT: I should add, if declined, you always have the option of pleading your case over the phone, sometimes you get a reasonable credit analyst.

Have you been an AMEX member before? If so, you may have a better chance if you had a clear history with them. If not (well, either yes or no really) you could apply for both and maybe take one INQ hit and possibly only get one or both (Zync and BCE) if not totally declined.

For some reason I almost hear "Arnie's" voice in the back of my head saying "DO IT! DO IT NOW".......... just my 2 cents (and if I were in your shoes)

Re: AMEX BCE With Chargeoff?

n777ua — Wed, 07 Dec 2011 16:26:49 GMT

OP - let us know what you decide and what the outcome of your app is if you decide to go that route.