AMEX BCP Denial - Excellent relationship with AMEX, $245k income

[Anonymous]

I'm not sure how to proceed. Whether to call the recon line or let it go. 

I was approved for AMEX Platinum back in July 2020. I have one 30 day late payment from back in 2014 that's due to fall off within a few months. No other derogatory marks since. Since being approved for the Plat, I reported my base salary of $145k on my application since my bonus always fluctuates. Well, for 2020 I earned $242k total with bonuses so on my new application I listed that as my income. I average $15k-$18k in monthly spend and I pay in full usually before the statement drops. Sometimes it'll reflect $4k-$5k because I'll forget to make the payment to bring it down to $0. A portion of my spend is work related expenses that get reimbursed. I currently have $23k due on my Plat card so that may have not helped things. Amex pulls EXP which is my weakest of the 3 bureaus with a FICO8 of 686. I have a stronger profile since getting approved for my Plat with the exception of a 0% APR purchase I made over Christmas. It's $5k on a $6.5k Discover card. I have the money to pay this off. 

Here are the reasons for denial:

The length of time you have been a customer with American Express is too short.

The amount currently outstanding on your American Express account(s) is too high relative to the income you provided on your application.

The balances on your credit card accounts are high in relation to their credit limits, as reflected in your credit report.

I've not gotten an alert on MyFico of an inquiry, any chance this was a soft pull and not a hard pull? The denial email said they obtained my information from Experian and my score was 686. 

In hindsight, I probably should have waited at least six months (or a year) before applying for another card with them but oh well. I'm sitting here debating whether to let it go and apply again after a year or call recon.

[FinStar]

It's totally up to you to see if a reconsideration is warranted based on the reasons they cited.

You mentioned the FICO score AmEx provided was 686, any factors that are holding the EX score down?

[Anonymous]

The cited the late payment from 7 years ago. 
Too many recent inquiries (I'm a business owner, had to finance a few trucks recently and got a new personal vehicle). 
Too many new accounts opened. 

My cards don't have very high limits so I was hoping to open another Amex to help my utilization go down with the 0% APR card I had. 

CapOne $2.5k limit - opened 07/2019

CSP $5k limit - opened 01/2020

Apple Card $4k limit - opened 06/2020

Discover It $6.5k limit - opened 06/2020

Amex Plat - opened 07/2020 with $15k average monthly spend, always paid in full. 

I should have just waited until I paid it off next week but I thought they've seen I've been a consistent customer. My biggest hope now is that it wasn't a hard pull. 

[FinStar]

What I would suggest is giving things some time.  Revisit applying once the late payment is removed and this will build your internal history with AmEx.  

An item to keep in mind is that the recent new accounts + inquiries are not helping your cause.  And, while you may be using the AmEx Platinum to its potential, it appears they're still not comfortable to extend a revolving CC at this time.  Also, wait until your FICO score updates on the AmEx website to track your progress, then periodically check for pre-approval offers.

[Slabenstein]

Do you see an HP on your EX ACR?  (If you haven't already pulled it this week.)

[Anonymous]

@Anonymous Sorry about your denial. Based on the provided info it appears that you have a lot of new accounts which could have brought down your AAoA (average age of accounts) to levels that Amex is not comfortable with.

It's also possible that recent inquires or a combination of these factors played a role in the decision.

I would still suggest attempting to recon as you have nothing to lose. Worst case if denied, you can wait 6 months or so to allow your accounts to age before apping again (accounts are considered young when they are under 2 years). 

Also it is well known that Amex "may not" perform a hard pull if you already have a credit line with them (expect a hard pull, but chances are that it will be a soft pull instead).

Good luck!

[Anonymous]

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@FinStar wrote:

What I would suggest is giving things some time.  Revisit applying once the late payment is removed and this will build your internal history with AmEx.  

An item to keep in mind is that the recent new accounts + inquiries are not helping your cause.  And, while you may be using the AmEx Platinum to its potential, it appears they're still not comfortable to extend a revolving CC at this time.  Also, wait until your FICO score updates on the AmEx website to track your progress, then periodically check for pre-approval offers.

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That makes sense. I used to see the preapproval verbiage early on and then after my second or third month I'd only see the "expanding your membership with us..." message. 

[Anonymous]

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@Slabenstein wrote:

Do you see an HP on your EX ACR?  (If you haven't already pulled it this week.)

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I did the Amex app a few minutes before making this thread. I normally get an alert or email from myfico or credit karma whenever I do an app. I haven't gotten an email or alert yet but figured it was because it was after normal business hours. 

[Anonymous]

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@Anonymous wrote:

@Anonymous Sorry about your denial. Based on the provided info it appears that you have a lot of new accounts which could have brought down your AAoA (average age of accounts) to levels that Amex is not comfortable with.

It's also possible that recent inquires or a combination of these factors played a role in the decision.

I would still suggest attempting to recon as you have nothing to lose. Worst case if denied, you can wait 6 months or so to allow your accounts to age before apping again (accounts are considered young when they are under 2 years). 

Also it is well known that Amex "may not" perform a hard pull if you already have a credit line with them (expect a hard pull, but chances are that it will be a soft pull instead).

Good luck!

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Thank you for this post! I figured I would be considered 'young' until the 1 year mark. This helps me make ska more informed decision for the next app. 

Will closing one of my newer cards that I don't use help me or hurt me? A lot of my trade lines are under my business and my personal file has been pretty thin. I've got two Chase business cards with 3+ years of excellent history but I'm not sure that helps my personal credit at all. One Ink Business Unlimited ($41.5k CL) and another Ink Business Preferred ($65k CL) that are both always PIF. 

I recently started applying for personal cards because my loan officer said I needed to improve my personal credit before applying for mortgage later this year. 

[randomguy1]

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@Anonymous wrote:

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@Anonymous wrote:

@Anonymous Sorry about your denial. Based on the provided info it appears that you have a lot of new accounts which could have brought down your AAoA (average age of accounts) to levels that Amex is not comfortable with.

It's also possible that recent inquires or a combination of these factors played a role in the decision.

I would still suggest attempting to recon as you have nothing to lose. Worst case if denied, you can wait 6 months or so to allow your accounts to age before apping again (accounts are considered young when they are under 2 years). 

Also it is well known that Amex "may not" perform a hard pull if you already have a credit line with them (expect a hard pull, but chances are that it will be a soft pull instead).

Good luck!

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Thank you for this post! I figured I would be considered 'young' until the 1 year mark. This helps me make ska more informed decision for the next app. 

Will closing one of my newer cards that I don't use help me or hurt me? A lot of my trade lines are under my business and my personal file has been pretty thin. I've got two Chase business cards with 3+ years of excellent history but I'm not sure that helps my personal credit at all. One Ink Business Unlimited ($41.5k CL) and another Ink Business Preferred ($65k CL) that are both always PIF. 

I recently started applying for personal cards because my loan officer said I needed to improve my personal credit before applying for mortgage later this year. 

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Your business cards do not help your personal credit file.

I would not apply for more personal cards within 6-12 months of your mortgage application. It all is dependent on your profile.  Other than your lates, what is dragging your score down? Have you read about the AZEO method?

Paying down your $5000 balance on your $6500 SL Discover card will help. If this is your only card with a balance, I would pay it down to below 8.9% (roughly $578).