AMEX FR - income related?

[Mekitcat]

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@jasimae wrote:

I agree with Mod.  I don't believe income plays ANY part in being subject to a financial review.  It's just a random spin of the wheel or either some kind of demonstrated suspicious usage/activity.  You can have suspicious activity making $35K or $200K.  So because AmEx doesn't actually know what each card holder's actual income is, they do financial reviews.  Makes sense to me.  I'd do that too, randomly.  And given the amount of people who have defaulted on credit cards, especially theirs, I think it's the only thing a company can do to protect themselves.  Quite frankly, if they did one on me, I'd just be like "whatever...what do you need?".  I don't have to lie about my income or my meager assets.   My income and taxes are what they are.  Bring it.  Personally, I like the card and enjoy having it in my rotation.  I think any creditor who extends significant amounts of credit should be able to question the consumer's financial means and if it's no problem, then they should be able to prove it.

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+1

[Anonymous]

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@jasimae wrote:

I agree with Mod.  I don't believe income plays ANY part in being subject to a financial review.  It's just a random spin of the wheel or either some kind of demonstrated suspicious usage/activity.  You can have suspicious activity making $35K or $200K.  So because AmEx doesn't actually know what each card holder's actual income is, they do financial reviews.  Makes sense to me.  I'd do that too, randomly.  And given the amount of people who have defaulted on credit cards, especially theirs, I think it's the only thing a company can do to protect themselves.  Quite frankly, if they did one on me, I'd just be like "whatever...what do you need?".  I don't have to lie about my income or my meager assets.   My income and taxes are what they are.  Bring it.  Personally, I like the card and enjoy having it in my rotation.  I think any creditor who extends significant amounts of credit should be able to question the consumer's financial means and if it's no problem, then they should be able to prove it.

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+1

As intrusive as it may be, the poster I have quoted has made a very good point, and if I'm ever FR'd by AmEx, I'd ask them what they need and get it over with period.

[bichonmom]

I wasn't really debating whether FR is right or wrong. I was only posing a theory that one of the factors could be the annual income stated on the app that might put someone on their radar for a FR.

[llecs]

As an FYI if anyone cares, I applied for Amex and understated my income to be $89k (HHI). Then after 9 months got FR'd and the previous year's 1040 showed $112k. But I don't think it's income-related. I know of several millionaires who literally live paycheck to paycheck. They never changed their habits and bought a home and cars they can't afford.

My FR was triggered by a purchase for services at a law firm, so says the Amex CSR. I was starting a new business and needed some trademark/patent work done. I asked my attorney about CC rejections and said for some reason about 25%-50% of his clients who use an Amex get rejected for whatever reason.

[Walt_K]

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@impovingmycredit wrote:

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@bichonmom wrote:

The FRs that everyone is talking about w/Amex is a surprise (or for some a shock that comes in the form of a decline when they go to make a purchase) AFTER they have been approved for, and used, the card. There are other threads that talk about this issue. It's not an issue of confirming income *when* applying; it's an issue of checking up on people for no apparent reason *after* they have been approved. For most people, it seems to come out of nowhere. It's *not* precipitated by anything in particular (e.g. CLI request, major purchase, etc.). That's why I thought that perhaps the stated income would be a factor on Amex's radar.

+1

I'm currently getting FR'd and I gave no reason.  Charged a grand total of $35.00 within the first week of getting card, all info on my app is correct and when I asked why I was being FR'd, I was told that a lot of new accounts go through this "vetting" process to confirm income.  Regardless, I am not concerned about losing the card because I absolutely was forthright, but I did find out while making another small purchase and was declined.  I should have an answer on Monday I was informed regarding the outcome of this FR.  I will post more info if I can gleen it from the rep handling my case.  If it makes any difference, my income is +100K and this is for a Zync card.

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In a previous post, you said you had a prior account that was closed down by Amex when you fell behind.  While you made good on it later, I'd guess that might have put you at higher risk for FR. 

[andyaycw]

Is Amex still looking at where you buy your items? I remember reading something about that awhile ago where they flagged certain stores as higher risk and had partially based their FRs on this. I thought they had done away with that?

[Walt_K]

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@andyaycw wrote:
Is Amex still looking at where you buy your items? I remember reading something about that awhile ago where they flagged certain stores as higher risk and had partially based their FRs on this. I thought they had done away with that?

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Not sure what you are referring to, but I recall discussion of a an article from 2008/2009 (can't remember) where a customer had his credit limit reduced.  I don't remember any talk of FR, just CLD.  Also, from what I remember, Amex admitted to some financial profiling, but didn't confirm any specific stores on the profile.  The customer surmised that it was his purchases at Walmart. 

This was obviously during the height of the credit crunch.  I wouldn't be too concerned about anything like this.  Also, even if Amex is monitoring your purchases at discount retailers, it's surely part of a larger picture.  Just walking into Walmart one day isn't going to result in AA. 

[bichonmom]

This is really interesting! I didn't realize that they paid this kind of attention to *where* things are purchased. I guess if they see someone using a law firm, they might jump to the wrong conclusion. But I have a client who charges his atty fees for his biz on his biz CC and has never had a problem. But then again, it's not Amex.

At least I won't have to worry about WalMart if/when I get an Amex, since I just got the WalMart store card. But if Amex has a bias against WM, I wonder if they might be less likely to approve me for credit because of the WM CC on my CR.

I gather from these posts that income might not be a factor, or may be one factor among others.

[Walt_K]

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@bichonmom wrote:

This is really interesting! I didn't realize that they paid this kind of attention to *where* things are purchased. I guess if they see someone using a law firm, they might jump to the wrong conclusion. But I have a client who charges his atty fees for his biz on his biz CC and has never had a problem. But then again, it's not Amex.

At least I won't have to worry about WalMart if/when I get an Amex, since I just got the WalMart store card. But if Amex has a bias against WM, I wonder if they might be less likely to approve me for credit because of the WM CC on my CR.

I gather from these posts that income might not be a factor, or may be one factor among others.

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The point of my post was to highlight that Amex bias against Walmart is very much rumor.  It was the customer who guessed that his purchases at Walmart were what caused the CLD.  I don't think Amex has ever come out and said that they frown on Walmart shoppers.  It would be odd for them to do so since Walmart is a ShopAmex partner. 

[bichonmom]

Good to know, Walt.