AMEX Denied Due to Delinquency Over 7 years old

[Anonymous]

Hi everyone,

was recently denied an AMEX card due to delinquent accounts on my file. I found out that an old charge off that was paid in full and aged off popped up on my credit report again. After disputing, and successfully getting it removed I called their recon line and explained to them it was successfully disputed at which point they said they will review in 2 weeks.

Fast forward I call them again, and now they are denying me due to my delinquent history for other accounts I had that went into collection. Most were paid, but none of my delinquent history has ever been with AMEX. Disregarding how they managed to dredge up accounts that are no longer present on my credit report are they allowed to make a decision based on accounts that aren't factored into my credit score anymore? I understand they may be still sore if I burned them before, but this was with other financial institutions.

I have low 700s across all 3 CRAs, a  1+ year old car loan (current with no late/missed payments), and a few cards as an authorized user with low /no balances -- one of which is with AMEX. What are my options?

[kilroy8]

They don't have to use any score at all to decide not to do business with you. Unless they are discriminating against you because of some protected status,and you can prove that they are (super difficult),  you just have to wait until they decide they want to do business.

[rbentley]

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@Anonymous wrote:

Hi everyone,

Fast forward I call them again, and now they are denying me due to my delinquent history for other accounts I had that went into collection. Most were paid, but none of my delinquent history has ever been with AMEX. Disregarding how they managed to dredge up accounts that are no longer present on my credit report are they allowed to make a decision based on accounts that aren't factored into my credit score anymore? I understand they may be still sore if I burned them before, but this was with other financial institutions.

What are my options?

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As indicated above, you have no legal right to credit.  You merely can't be discrimated against based upon protected classifications.  They do not have to make decisions based soley on your CR's and can take into account your astrological sign, should they desire.

You ask us to disregard how they "dredged" up your old derogatory accounts.  We can't really disregard that if you want to find out why you were denied.  My guess is those accounts while closed are still showing on your reports.  Once they drop off entirely they would no longer be visible to other prospective creditors.  Of course an individual creditor who was burned is entitled to blacklist you forever, should they desire.

You ask what are your options.  Failing recon, your only option is to shrug it off and move on to others who are more ameniable to doing business with you.  Based only on your scores I think you will find plenty who will.

[FinStar]

OP, if a reconsideration effort reveals other information that drives a deeper look into your overall profile, then yes they can still make that determination to not approve the application.

That being said, you stated "Most were paid, but none of my delinquent history has ever been with AMEX." So, how long ago was this negative information reflecting on your CRs with your other tradelines? If there were any 30/60/90+ derogatory instances reported that are still lingering on your CRs, they could very well factor that in. Aside from the previous negative relationship with them, regardless if satisfied.

I'd give it some time and try again.

[Anonymous]

Thanks for all your replies. The reason I'm confused is because ALL of my delinquent history has already aged off. There are no deliquent remarks on my Experian CR which they pulled from. After they reviewed they discovered these closed accounts which were indeed mine, but they were all over 7.5 years ago when I was young and didn't know how to handle credit responsibly.

I can say for certain I have 0 derogatory remarks on my Experian and Equifax, but I am being denied for delinquent accounts which no longer show on my credit report. Transunion shows 0 derogatory marks as well through CreditKarma and similar services. I just never got an actual paper credit report from TU.

The only thing I can think of is that I was added as an authorized user for AMEX last year when I still had one delinquent account showing on my CR, so if they did a soft pull they may have found out about one, but not the others. So my question was really is it fair/legal for them to use accounts which are past their 7.5 year mark and are confirmed aged off? I thought they weren't supposed to be using information that old (barring internal blacklists of course).

[kilroy8]

It is the credit agencies that are beholden to the 7 year/10 year rules. Other companies can keep things forever and use whatever they can find. If they are still on your C/R's and beyond the time limit, a dispute will get rid of them. 

[grower1]

Are you saying that you were denied due to delinquency even though all 3 of your credit reports are free and clear of Derogatory marks? 

[Caught750]

That may be the reason they gave while there are other reasons for the denial. They need to give a reason but they can deny for anything. Where are you getting the reports from? Is it only from CK?

[JR_TX]

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@Anonymous wrote:

Thanks for all your replies. The reason I'm confused is because ALL of my delinquent history has already aged off. There are no deliquent remarks on my Experian CR which they pulled from. After they reviewed they discovered these closed accounts which were indeed mine, but they were all over 7.5 years ago when I was young and didn't know how to handle credit responsibly.

I can say for certain I have 0 derogatory remarks on my Experian and Equifax, but I am being denied for delinquent accounts which no longer show on my credit report. Transunion shows 0 derogatory marks as well through CreditKarma and similar services. I just never got an actual paper credit report from TU.

The only thing I can think of is that I was added as an authorized user for AMEX last year when I still had one delinquent account showing on my CR, so if they did a soft pull they may have found out about one, but not the others. So my question was really is it fair/legal for them to use accounts which are past their 7.5 year mark and are confirmed aged off? I thought they weren't supposed to be using information that old (barring internal blacklists of course).

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There’s your answer right there. They SP every card member every month to monitor the accounts as well as provide the free monthly EX FICO.  With that, they still have copies of your older report/s showing your derogs which they most likely used to render decision on your app. If I am to guess, they didn’t HP you and pulled a fresh CR? 

If that’s the case then all you can do right now is wait awhile (3-6 months?) until the ones they have are your new clean CR. 

Good Luck and please report back!