Amex Business Credit

[NYC_Fella]

Back in 2016 my business went under in a spectacular implosion leading to my BK7. One of our creditors was Amex Business Credit from whom we had borrowed $750K against our future revenues. My partner was the one who was the personal guarantor as she had the stronger credit. Of course, she had to file BK7 as well. The business never filed for BK but just closed shop and died.

Since I had no exposure to Amex during that time, I have been able to get Amex cards recently with generous limits. My partner now has a new and very successful business and would love to get an Amex Platinum card for her new business. Is that a pipe dream? She is 5+ years past her BK but I suspect that $750K in IIB, even as a guarantor rather than a primary debtor, will not be easily glossed over.

[NYC_Fella]

Bump.

[cashorcharge]

While I don't have firsthand knowledge or experience....I am tending to think the $750K IIB is not going to magically go away or get glossed over.  While we've heard of people getting back in with AMEX, I don't recall someone burning them for that much and then getting back soon or even at all.  

Suffice to say, the only test will be to apply.  If she doesn't have any other cards...sounds like she doesn't...then the opportunity for a SP approval is doubtful.  She'll need to apply and see how it goes.  I know their personal card process has changed so that if you won't be approved, I think it tells you in advance of finalizing so it's like a precursor to the HP.  Not sure if the business side has that same workflow but app'ing may be a good start.  Her past debt...did it hit her personal CB?  Not sure if the BK was personal or business...

[NYC_Fella]

Thanks. Yes, it's a bit fuzzy because the $750K was not her personal debt; she was just the guarantor. While that guarantee had to be included in her personal BK filing for obvious reasons, it does not appear on her personal credit reports. Technically it was the business that burned Amex, who never even tried to enforce her PG.

She does have a couple of other CCs (e.g., Capital One) with limits of $5K or less. I think you are right. She will just have to apply and suffer the HP.

[cashorcharge]

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@NYC_Fella wrote:

Thanks. Yes, it's a bit fuzzy because the $750K was not her personal debt; she was just the guarantor. While that guarantee had to be included in her personal BK filing for obvious reasons, it does not appear on her personal credit reports. Technically it was the business that burned Amex, who never even tried to enforce her PG.

She does have a couple of other CCs (e.g., Capital One) with limits of $5K or less. I think you are right. She will just have to apply and suffer the HP.

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She likely has a new EIN so I'm curious if that bad debt is tied in their system to the old business EIN or her personal SS and then would come up during the application process.  Since the "business process" is likely not as clear cut as the personal...perhaps drive her to applying for something on the personal side using their preapproval tool.  She'll need her SS for that and that would indicate if she's Blacklisted due to the past.  If not, give it some time...maybe 60-90 days and then apply for the business card.

[NYC_Fella]

All good points. Thanks for the input!

[pizzadude]

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@NYC_Fella wrote:

She does have a couple of other CCs (e.g., Capital One) with limits of $5K or less. I think you are right. She will just have to apply and suffer the HP.

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I believe if she is in fact on the blacklist then AMEX won't even pull her credit reports, so no HP, just an immediate "Nope" response. 

[NYC_Fella]

Thanks, excellent point.