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I just wanted to ease some peoples' fears of the dreaded financial review by AMEX.
I first grew wary of the FR by browsing these forums. I lived in fear that my accounts may be shut down by AMEX if I ever got hit by a FR.
Last week, just two days after being approved for an Amex Everyday card, I was hit by an FR and was told to send in tax documents and bank statements. I immediately faxed the required documents, and after four business days, my accounts were unfrozen and I was actually given a few credit line increases. My BCE limit was raised to $10,000, my Delta Skymiles limit was raised to $15,000, and the $2,000 limit that I was approved for on my Everyday card was raised to $8,000.
What I wanted to discuss here is that as long as you haven't lied on your applications and you're not doing anything sketchy, nothing bad will come of a FR. In my case, only good came out of it! Amex just wants to make sure that you're actually able to pay off the credit lines you've been granted, that's all. The agent I was assigned was very informative, and told me that FRs are triggered when the computer thinks you're a potential credit risk. All Amex wants to know is that you have income and you're able to pay your bill reasonably. The FR is not meant to haunt you, it's just for your protection and Amex's protection.
The moral of the story here is: Don't fear or dread an FR. Promptly submit the required documents and your accounts will be restored in no time (assuming you haven't lied or done anything sketchy). In my case, you may actually be given some increases if the agent deems it fit. Keep in mind, I have no late payments and I'm only repoting $25,000 in income to Amex.
Hope this helps some people!
Is the 4506T always a part of the Amex financial review? Does any other lender ask for a 4506T? Seems pretty intrusive, but I used to have to grant access to my credit reports and tax returns as part of background investigations for security clearances.
@DangerNoodle wrote:The FR is not meant to haunt you, it's just for your protection and Amex's protection.
Now that they know you'll pay they can lower the APR to 5% right?
Thanks for the write-up DangerNoodle.
It's definitely helpful to read how smooth the process works when it does in fact work as its designed. Obviously once they verified the information you provided, you were rewarded in the end. Always pays to be honest! As others were speaking about for clearances etc. it's very much a no-brainer that if you're submitting documentation to credit bureaus regarding income, and that income is not truly accurate, they will and do find out (Govt entities, CRA's, etc.) so it's absolutely ridiculous to ever report income outside of what you earn. As stated here already, they do a review to confirm you can in fact afford your credit line to protect both you and them. Good stuff, good review!
This looks like a request for income verification rather than a financial review. Or am I missing something?
@HeavenOhio wrote:This looks like a request for income verification rather than a financial review. Or am I missing something?
The OP mentioned that after 4 business days his accounts were unfrozen. To me that definitely sounds like a FR vs just income verification.
@DangerNoodle wrote:All Amex wants to know is that you have income and you're able to pay your bill reasonably. The FR is not meant to haunt you, it's just for your protection and Amex's protection.
Just for Amex's protection, not yours!