@DangerNoodle wrote: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!
Many of us don't fear an FR. That being said the issue a lot of people have is not wanting to deal with the hassle and turning all this info over to a credit card lender, especially those of us with established credit profiles and a long history of ontime payments etc. I'd probably tell Amex to shove off if they ever tried that crap with me. Has nothing to do with fear. Just has to do with the fact that I don't think Amex is anything special and I can move my business to other lenders.
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@CreditInspired wrote:
The only time I’ve been asked for a 4506T is when I requested a 3X CLI from $15K to $45K on AmX. However, I kept lowering the CL request and at $25K, I was approved w/o having to do the 4506T.
I can’t recall if other lenders request this or not.
Yep, for a security clearance or to buy a house, I understand a 4506T request. Just not for a CC.
Right. I don't care if they make a request like that IF I am seeking extra credit and I can decide whether or not I want to submit at that point. Where I have the problem is if I am not asking for extra credit and they start shutting down accounts and making demands for documents.
@CreditCuriosity wrote:Its their money and their sandbox so they make the rules. As others have echoed some have no issues yet other do with providing the info. I disagree though as it is UNSECURED debt and a big risk regardless what a persons credit score or income is.. When you buy a house you provide this info and that is a SECURED debt that can be taken from you if you default for whatever reason. So IMO I think all CC companies should verify income maybe just by w-2's or Pay Stubs or whatever else less intrusive than 4506's and I can pretty much guarantee you there would be less CO's and defaults benefiting the consumer most likely as a whole with lower apr's or possibly better rewards. People have strong feelings on both side of this argument and no one will ever win. OP provided which is great others choose not to and most likely would have their accts closed by Amex. Around the circle we go. Glad it all worked out for the OP though.
I don't for a second think that somehow less defaults mean lenders will offer better rewards or pass other benefits on to me as a result. I am quite certain any extra money that comes in will go right into lender pockets. Credit card lenders care only about themselves and will exploit customers any chance they get. Just ask anyone who has hit on hard times and then had credit card lenders jack up their interest rates.