Payment issues with AmEx...how long do they affect decisions?

[Anonymous]

Hi myFICO!

Had a frustrating last couple of months with American Express (formerly my favorite company for customer service) and would love some insight.

Around 2018, I maxed out my two co-branded AmEx cards and because my job paid dust, had a very hard time making payments and my card usage was usually right at 100%. I hit rock bottom around September of 2019, when I was in-between jobs and couldn't make that month's minimum payments on my cards. I called asking for an extension, and was permitted a 30-day extension on both cards. I was told that if I made the late- and next-month payments for both cards by the next due date, it would not be reported to the credit bureaus. I did that, and ever since then my financial situation improved dramatically. I have since paid off all my credit cards, opened a few more, and pay off each card in full each month.

However, I have had a very difficult time getting approved for anything despite having a perfect payment history for over a year. The only product I managed to be approved for was the Hilton Aspire, but everything else: Green Card, Gold, Platinum, credit limits, you name it: denied. My denial letters have said the same things every time:

• Your consumer credit report indicates your payment history has been unsatisfactory [Not true--none of the three bureaus shows anything less than a perfect payment history, so I'm suspecting this is in-house information from when I was struggling]
• The balances on our credit card accounts are high in relation to their credit limits, as reflected in your credit report [Also not true--all of my credit utilizations are in the single digits]
• The number of creditors who have reviewed your credit report [7 in the last 12 months, which according to Experian, is high]
• A number of factors listed under FICO Score, all of which I see on my Experian report

So...I'm confused. How long will my denial letters reference my payment issues from before? I've spoken to every department I can think of: Recon, Chairman's Office, and no one wants to move an inch on my applications. And help would be much appreciated. Thanks!

[FinStar]

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@Anonymous wrote:

Hi myFICO!

Had a frustrating last couple of months with American Express (formerly my favorite company for customer service) and would love some insight.

Around 2018, I maxed out my two co-branded AmEx cards and because my job paid dust, had a very hard time making payments and my card usage was usually right at 100%. I hit rock bottom around September of 2019, when I was in-between jobs and couldn't make that month's minimum payments on my cards. I called asking for an extension, and was permitted a 30-day extension on both cards. I was told that if I made the late- and next-month payments for both cards by the next due date, it would not be reported to the credit bureaus. I did that, and ever since then my financial situation improved dramatically. I have since paid off all my credit cards, opened a few more, and pay off each card in full each month.

However, I have had a very difficult time getting approved for anything despite having a perfect payment history for over a year. The only product I managed to be approved for was the Hilton Aspire, but everything else: Green Card, Gold, Platinum, credit limits, you name it: denied. My denial letters have said the same things every time:

• Your consumer credit report indicates your payment history has been unsatisfactory [Not true--none of the three bureaus shows anything less than a perfect payment history, so I'm suspecting this is in-house information from when I was struggling]
• The balances on our credit card accounts are high in relation to their credit limits, as reflected in your credit report [Also not true--all of my credit utilizations are in the single digits]
• The number of creditors who have reviewed your credit report [7 in the last 12 months, which according to Experian, is high]
• A number of factors listed under FICO Score, all of which I see on my Experian report

So...I'm confused. How long will my denial letters reference my payment issues from before? I've spoken to every department I can think of: Recon, Chairman's Office, and no one wants to move an inch on my applications. And help would be much appreciated. Thanks!

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Unfortunately, there's no specific timeframe when AmEx will warm up to your profile regardless if you escalate to EO.  Typically, these decisions are system-driven and in a variety of cases cannot be overridden.   Also, the reasons are a combination of external and internal factors that AmEx tracks with your overall profile and they tend to have a pretty long memory.   On the upside, it appears you were able to get the Hilton Aspire.  What limit did you get approved?  Is that the only active AmEx card or do you have any others?

The only thing you can do is let time do its thing.  To add, today's current economic environment has changed the lending landscape for a variety of lenders, including AmEx.  So, it's fairly possible that AmEx only feels comfortable with the current exposure given the past history.

[Anonymous]

$3100, which is the same limit on one of my other AmEx cards, the other being $2000. Put plenty of spending on them, but I agree the current economic climate is making them more nitpicky then usual. I would hate to lose out on those awesome sign-up offers I'm for seeing for their charge cards :/

[Anonymous]

My feel is that September 2019 incident is at the core of it all. Amex doesn't like indications of financial vulnerability. The $3100 limit on the Aspire is the minimum approval limit for that card as I've read here in the past. 

The tremendous upside is that you did get the card, you did not officially miss a payment with Amex due to the deal they made with you, and you are still in with them. I would expect they will warm up with continued solid history, but the skipped payment and extended maxed-out cards are going to mean you'll have to prove yourself to them. Time and responsibility will be your allies.