Amex Preapproval not always valid

[CreditFun]

Hi Macaw, 

Overall I have a 24 year on/off again charge card relationship with Amex.  I closed my Amex in good standing about 7 years ago. Two years ago, I was added as AU on two Amex cards (Platinum and Blue Cash). 

Earlier this week, I applied for Amex Platinum and was approved with EX FICO 8 634, AAoA 10y8m, AoOA 24.5 years, 6 chargeoffs / 3 collections 6.5 years+, and most recent late payment 3.5 years ago.

Next week, after I am reporting AZEO, I will be applying for Amex Cash Magnet. 

If I get approved, then I would say relationship was the tie breaker.

I'll keep you posted.

[Anonymous]

I suspect that their wording is accurate. Being as you have 3 derogs on your CR, you have not sufficiently demonstrated the behavior to warrant additional credit with Amex. They're hesitant to grant credit to people with low scores and negatives until to provide a history of good payments.

What's your activity like on the Gold heavy or minimal usage? Usually that verbage is used for account 6 months or younger, or even 12 if not very much use. Also what's your NPSL on the Gold? This could be an indicator of the CL they're compfortable giving you. 

Having her add you as an AU may increase your score, but it's not going to eliminate the reasons that you're being denied for.

The up front approval algorithm only goes on your score, which in itself is fine. But when they do an actual bureau check  and find baddies, it will come back as not favorable. 

[Anonymous]

I spend an average of 2500 to 3000 a month on the Gold card. I was told my ceiling on it is 6500.

[Anonymous]

Are the three derogatories charge-offs? ( sounds like it to me since they are still unpaid). 

Here's how Amex works...preapprovals are issued by their marketing team on the basis of a pre-screening of credit scores, etc.  But once an application is made it undergoes a more rigorous screening by the underwriting team/computers based on their last soft pull of your credit report (or occasionally they may make a new hard pull).  The derogatories will show up during the underwriting and will pose a problem, especially if they remain unpaid.

[Anonymous]

A couple of months ago I also got a preapproval for the Delta Gold, foolishly pulled the trigger, and was denied. Since then my preapprovals also include the Hilton-branded cards. I'm hesitant to try again. (Though I wouldn't be trying right now anyway because of some other recent approvals.)

I have some baddies (mainly a 90-day-late) that is now a year old. Everything else is "paid as agreed" (though one is settled for less than full amount). No charge-offs or anything. EX FICO is 668. No previous relationship with AMEX other than an AU many moons ago.

I was always led to believe a preapproval was pretty solid, but in my case the interest rates mentioned were in a range (17%-26% or whatever) instead of one number or a very narrow range of numbers. 

My plan right now is to wait until I see a preapproval for a Blue card or anything that is not co-branded. I want an Amex card badly, but don't feel like wasting any more hard pulls. 

[elixerin]

@CreditFun how'd it go? 

[Anonymous]

Hi all. Since my post, I actually saw my opportunity when the new Amex Green came up as pre approved, thinking since I had it before, I would be more likely to get approval. I pulled the trigger and got it.
Then 2 days later pulled the trigger on the Hilton Honors, got it as well . Now of course only have 1000 to start , but was still excited.

Funny thing though, since approval, my Gold card limit has dropped, called them , they say it hasn’t . But it did. That’s my update

[FinStar]

Thanks for the update @Anonymous and congrats on the approval.

As the OP has indicated they've been approved, this thread is now locked and closed to new messages.