AMEX ED Denial

[Anonymous]

Mine is a tale of impaticence, overeagerness and stupidity. Just thought I would share my data.

Was denied and counter-offered with $500 SL and no bonus. I was fine with a low SL, but no bonus is a dealbreaker.

EX FICO score as of today: 719

I have 12 accounts, 9 of which are my deferred student loans. Oldest account is 4 years 8 months old, AAoA is something like 2 years 4 months.

1 Affirm loan that is 1/3 months paid.

Capital One Platinum card that is 2 months old with $500SL and reported $0 balance.

Local credit union card opened at the same time with $500SL and reported 30% utilization.

This was my problem (aside from the obvious short revolving history). My 2nd statement (which would show a $5 balance instead of a $149 balance) closed 4 days ago, and hasn't updated on my Experian report.  The Experian simulator estimates that it would have brought my score up to 734. I had been eyeing a 3rd card for a while (right now I have no rewards), and I was going to wait until my utilization was lower to apply, but I just got really impatient and decided to try my luck since I only had one hard inquiry from Capital One. Lo and behold, I am denied. My score is improving fast, I just have to be more patient before I apply for more credit.

[Shadowfactor]

Even though you wouldn’t have gotten a bonus. Your card still would have earned rewards. I do understand it though since Amex has the one in a lifetime language.

Always try the prequalified sites if a creditor has one before apping.

Discover would probably be a good place to start for you getting into the rewards game. They are friendly towards thin files.

[Anonymous]

I'm waiting for an incorrect collections account to drop off of my TU and EQ reports before I apply anywhere else, that's why I decided to roll the dice with AMEX. Of course by the time I am writing this my utilization finally dropped and my score increased to 731  I wonder if it would have made the difference.

[Anonymous]

Probably not.  The mistake many people make is in thinking that credit approvals are made solely on the basis of their credit score(s).  Lenders actually place more weight on your entire credit profile than on your score; which is why you'll quite often  see people with lower scores get approvals with large credit limits.  Do you have any other derogatories other than the "incorrect collections account?"

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@Anonymous wrote:

I'm waiting for an incorrect collections account to drop off of my TU and EQ reports before I apply anywhere else, that's why I decided to roll the dice with AMEX. Of course by the time I am writing this my utilization finally dropped and my score increased to 731  I wonder if it would have made the difference.

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[Anonymous]

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@Anonymous  Do you have any other derogatories other than the "incorrect collections account?"

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@Anonymous

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Nope, that is the only black mark in my credit history, and AMEX didn't even see it since it was never reported to Experian. I have 100% payment history. I've already sorted it out with the biller, and I'm waiting for it to get removed from EQ and TU.

Official reasons listed:

No recent record of bank or retail revolving accounts. (Experian)

Too many new accounts. (Experian)

Ratio of the highest account balance to the sum of the balances on all accounts. (Experian)