AMEX APP/Denied...Recon Approved Maybe???

[Shaed251]

Hi Everyone,

I recently posted about my Discover It Approval for $7k CL in another forum. Well, I wanted to get an AMEX card, so I went ahead and got the membership here to see what my credit file/fico was looking like and from reading all the amazing stories on AMEX approvals, I knew I should really focus on EX fico more if I wanted the card. Well my Fico 8 was 760 with EX and I felt that would be a good score to at least get one of the cards. So, I did prequal and was told there was no card they could prequal me for. I thought was odd and I felt it may be it was because I opted out of pre-screening, so I just applied. 

Needless to say, I was denied and they would send me a letter in the mail as to why. Then I saw the EX HP come through and shortly after, received denial email letter. Well, I've read about recons on the forum and decided to give AMEX a call to better understand their decision, since I could not get an answer on the denial email. 

REASON: The gentleman at AMEX that I spoke to told me that it was because my One Main loan had a status statement of a loan modification and that was the only reason I was not approved. He said anyone applying for a new card with a loan modification showing on their report would automatically be denied (new customers only). My loan company automatically did this for their customers because of the pandemic. I asked him, even with them seeing me paying $2k a month (because I am trying to pay off before end of the yr), he said it wouldn't matter. They would automatically decline it. He said if the loan company would update that I'm paying like normal, then they would approve me no problem because that's the only reason it was denied. He said everything else looked fine. He told me just to call back after I speak with loan company and I can talk to any representative and they would go ahead and approve the application.  

Anyone else had this issue and if so, how did you resolve it? I plan on calling loan company tomorrow to see if they can take that note out or maybe I need to refi but my rate is 3.3%, so idk...... If that is all I need to do, then I might consider. Thoughts??? 

[Anonymous]

I went through something somewhat similar, but it was going through the mortgage process when they saw in the comments section of my auto loan that I was in deferment due to a "Natural Disaster". However, I was paying my note as usual and I had to have them reverse the comment in order to proceed. I never agreed to have my payments deferred hence why I continued to pay like normal, but Citizens took it upon themselves to change my payment status. I've read others with this as well. 

Sorry to hear that happened, you should be able to contact them, as long as you didn't request the modification and paying like usual, you should be able to reverse that. 

[MJ-san]

Same exact thing here. Applied for Amex Amazon business card and was declined.

BMW reported a comment "affected by natural disaster" on my account to Experian - as they did for everyone in my zip code - due to wildfires last year. This despite those fires being over 50 miles away and my not being in any kind of a payment  modification program or missing any payments.

I went back and forth with Amex on this (I already have 5 personal and business cards with them) and the only solution was to have BMW remove that comment.

I finally got BMW to do that, but even with that being done and faxing (yes they only accept faxes!) they wouldn't or couldn't approve. I had to wait for the 31st day after the initial application to then reapply, and was

then instantly approved.

good luck on your quest! 

[Shaed251]

@Anonymous 

Thanks so much for sharing your situation with me.

UPDATE:

Unfortunately, I called to see about getting it reversed but they said the only thing I could do to get it off is pay in full or refinance. To refinance would give me a much higher interest rate (currently 3.3%) and higher payments, as well as longer terms. I just found out as well, the loan modification comment, keeps me from being able to get funding for my mortgage loan. So, I can't refinance because it would pull my credit and look as if I am getting a new loan. I could just pay it off, but that would take a chunk out of my housing fund ($7,174 is balance to pay off). So I guess I'm in a tough spot. Either way,  I have to do something.  Not just for the AMEX but even to try to get a home loan. Lenders just don't like to see modifications on your profile when you are trying to get credit. I can either put it off until next year or pay it off and get my house and AMEX?? Decisions.........

[Shaed251]

@MJ-san 

Thanks so much for sharing. I got nowhere with loan company. They told me that the only way to get it off of my credit file is to pay the balance in full or refinance. I really do not want to do either because to refinance would increase my interest rate dramatically (3.3% currently) and paying it off in full would take away from my house fund ($7174 pay off balance). A problem geeater than this is, I just found out that in order to qualify for the mortgage funding I need for the house, I can't have a loan showing modification or it disqualifies me for this type of funding. I don't know what to do. Either I put off everything until next year or I pay it in full. Smh! This is ridiculous. I don't see why it is so hard for them to correct something and make it right. 

[DONZI]

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@Shaed251

Either I put off everything until next year or I pay it in full.

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I may have missed something, but what significance is next year?

options I see:

- call/visit One Main again and insist they remove the status statement (?). If you have paid each bill as if there was no pandemic, they took the money... the pandemic didn't disrupt anything with your agreement with them. I've not dealt with One Main but have heard they can be somewhat a PITA. Maybe a hundred bucks and a lawyer's letter of intent would help with One Main..

I guess that's an installment loan?  ..ironically you may get hit with some -points once paid depending on your circumstances.

- pay the loan off and consider it as sort of a 3.3% cash back deal and be rid of a predatory lender.

..The new disco you have has a 0% bal transfer I assume.. Possibly use that + cash?

- Live without the amex card for now

If you really want the amex the first two can apparently make it happen.

[Shaed251]

@DONZI 

Hi there DONZI! Thanks for your response.  Really good points. The significance of next year is only if I don't pay it completely off. I can't take on the refi because that would cause me to have another credit pull and it would go on my report as a new loan, which I can't have because of trying to purchase a house. They told me strictly, no more new credit. The problem though is that the loan modification being on my credit report is the reason I can't get AMEX or house loan. Since I can't do refi and if I don't want to pay all of the balance in full, then I will have to wait until it is completely paid off in Dec. with the plan I have in place.The downside.... I have to wait on the house until loan is paid and the modification is removed off my report, which won't be until Jan 2022 if I don't pay it off.  

I have considered your option of paying off and just replenish my savings with the money that I would've used to pay them each month plus any extra. It would only take me 4 months to do so and that will allow me to get the house and the AMEX.  I could use the AMEX card for the odds and ends I will need for the house. I would just wait until later to get my furniture since I have to furnish the entire house, which is what I am saving for. I have quite a bit saved but paying off the $7k loan would definitely put a little dent in it until I build it back up. 

I hope all this is making sense. This is my first home purchase and I'm trying my hardest not to get overwhelmed because of my health issues. I am so grateful to the wonderful ppl like you that helps me make sense of it all..thank you so much!! 

[Hex]

I'm pretty sure Congress passed a law that made it illegal to damage people's credit as a result of pandemic related credit reporting. I would call them back and tell them you are giving them a final chance to correct their reporting or you will be reporting them to the Consumer Financial Protection Bureau. If they refuse I'd report them and see what happens before doing anything else. 

[Shaed251]

Hi Hex!

Wow! I didn't know that! I will definitely be looking into that and acting on that immediately.  It's so unfortunate that this happened to so many ppl and from lack of information, has suffered as a result. Thank God for this forum and all the knowledgeable people that helps people like me stay informed. Thank you for the info!!! I really appreciate all the people on here from my heart. I feel truly blessed. 

[Shaed251]

@Hex 

Update: 

So, I checked on the Cares Act concerning lenders and what they can report to the credit bureau. Since my account was not delinquent, there was nothing adverse on my report for them to report. They do have the legal "right" to put in the comment that the account was modified as long as I am under that modification.  This is because the comment does not affect my actual credit per say and it is not permanent and will be removed once I start back paying "normal" payments. 

I called all day yesterday to try to have this resolved and No one could help me get it resolved and the supervisor that was supposed to call me back, never called back after several attempts for me to contact them, nor did they call today. They want me to refinance this $7,174 loan so they can get more money, rather than just easily removing the comment. I can't get funding for my house and this is why I couldn't get my AMEX approved,  despite I have paid $3k in the past two months on this loan. I never missed a payment on this loan and I am angry how they have handled my situation. I think I am going to just pay it off and NEVER deal with them again.