Thoughts on Repaying Amex

[johngee9876]

So I burned American Express for about 4k when I went ch7 in 2017.

Since then, I’ve worked very hard to rebuild my financial life. The reason for my bankruptcy was that I was working a commission only sales job and I wasn’t making any sales for long enough that I wasn’t making an income. I have returned to the W-2 world and nearly tripled my income since doing so.

I always enjoyed my AMEX membership and would like to reestablish it at some point in the future.

I spoke to American Express yesterday, and was told that they were not allowed to try to collect on the debt due to the bankruptcy however, I would be within my rights to make payments on the balance if I wanted to make things right with them. They gave me the balance, a reference number and an address to send checks to as they cannot accept payment in any other way on that account. They also said that this would not guarantee future membership, it would only clear up the existing bad blood.

Any thoughts on this? Is there any reason I shouldn’t do it assuming I want to and can afford it?

[Rekyrts]

Congrats on fighting your way back!

There is a lot of feedback with regards to Amex working with customers after defaults, so I feel fairly confident that if you pay, you should get off the blacklist and able to get their cards. They are very careful about how they get bk arrears, as you have found out.

You could ride it out; most anecdotal evidence indicates 10+-yr wait. One question: are you definitely on the blacklist now?

[johngee9876]

Yes, I am definitely on the BL. 

They recently updated their application process to something similar to what Apple Card does. You put in your info and they do a soft pull. If they give you terms, you can accept or not and then (and only then) the inquiry will hit your credit. 

I did a SP application the other night (2 actually because I'd seen some anecdotal evidence that a charge card might be easier to get than a CC) and both apps were denied because "American Express cancelled your previous account(s)" 

The only time THEY closed an account on me was in the BK (I had an account in my early 20s that I closed after realizing I was having difficulty managing it)

[FireMedic1]

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@johngee9876 wrote:

Yes, I am definitely on the BL. 

They recently updated their application process to something similar to what Apple Card does. You put in your info and they do a soft pull. If they give you terms, you can accept or not and then (and only then) the inquiry will hit your credit. 

I did a SP application the other night (2 actually because I'd seen some anecdotal evidence that a charge card might be easier to get than a CC) and both apps were denied because "American Express cancelled your previous account(s)" 

The only time THEY closed an account on me was in the BK (I had an account in my early 20s that I closed after realizing I was having difficulty managing it)

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Was it PIF? You pay them back. Invite to the Optima Card.

[johngee9876]

It was a charge card. I had a habit of charging more than I could afford to pay off monthly. After going back and forth with them for a while, I basically, said "I'm going to pay this off and then we're going to close this account" and they agreed. It took me 2 or 3 months but I did it. 

10 years later, they started sending me mailers (pretty aggressively) for the Blue Cash Card and I resisted for a while. That's the one that burned with the bankruptcy.

[Rekyrts]

Yep, sounds like you're on the BL... especially if you tried the preapproval.

I think it depends on how much you want to get back in with Amex. They won't promise, but if you make them whole, they most likely will let you back in.

[Guyatthebeach]

Johngee9876,

Personally, if you really want to get back with Amex, you can pay it back.  Once it's paid in full and it's been 61 months since you filed chapter 7, I would check the Amex Preapproval site. If it has an offer for you, take it. If not, check every month after your credit report. I would go this route, because you won't have a HP.

I didn't burn them, but I applied at the 61st mark, and was approved for a BCE card with no HP.  Now ten years post bankruptcy, I have 3 personal card and a business card with them. 

Let us know the outcome.

Guyatthebeach