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AMEX Financial Review: DO NOT BE SCARED

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Established Contributor

Re: AMEX Financial Review: DO NOT BE SCARED


@adelphi_sky wrote:

I disagree with a FR. A credit report is as intrusive as you can get. If your credit score is an 850 then it shouldn't matter what your income is. They can always do an FR on someone making $250k/yr with an 800 FICO and then they lose their job or get sick or a family member gets sick and have to file for bankruptcy or they become late.

 

Some people get bonuses every year and if one year the company decides not to give any, the person now may make $10k less for that ONE year. Should they be a greater risk over $10k for one year? I don't think so. 

 

It's all a farce. Stick to the FICOs. The future can never be predicted with any accuracy. On the other hand, credit card companies can lock you out of credit, reduce your credit line, or close your account altogether. 

 

To me, an FR from a credit card company that I have low utilization and a perfect payment history for would be an insult and would compel me to close my account. I don't care how much credit line I have with them. It's like what else do you want me to do? I can't stand situations where I have to walk on eggshells when I'm doing what I'm supposed to do and playing by the rules. If I have to worry about some FR every year, it's not worth it. I'd rather go back to cash. You don't need a FR for that. :-)


Amen, brother. Any credit card company that inists on having a  copy of my tax return will get their shredded card back as an answer. I went 7 years without credit cards, I can do it for the rest of my life if I have to. Since I have more cash in the banks than I have in credit lines, I see credit cards as a luxury, not a necessity. They do a soft pull on me ebout every other month, that should staisfy their questions. If it doesn't then they can ask me the question directly, but trying to see my tax return is a "fishing trip" that I will not allow. I have many assets that my credit report does not show, and I have two Trusts I don't want any credit card company to know about. They approved the card without that knowledge, I will get very insulted if they make revealing that stuff a condition of keeping the card.

4/1/2017 EQ 579 TU 595 EX588
9/20/2018 EQ 810 TU 807 EX 795
6/12/19 EQ 820 TU /789 EX 793
12/13/2019 EQ 835 TU 813 EX 810 Finally made it into the 800 club on all 3 Bureaus - only took 25 years.
8/29/2020 EX 776 EQ 761 TU 768 - I paid off my mortgage and car loan and am debt free forever, and FICO threw me out of the 800 club as a reward
Message 21 of 44
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Valued Contributor

Re: AMEX Financial Review: DO NOT BE SCARED


@adelphi_sky wrote:

I disagree with a FR. A credit report is as intrusive as you can get. If your credit score is an 850 then it shouldn't matter what your income is. They can always do an FR on someone making $250k/yr with an 800 FICO and then they lose their job or get sick or a family member gets sick and have to file for bankruptcy or they become late.

 

Some people get bonuses every year and if one year the company decides not to give any, the person now may make $10k less for that ONE year. Should they be a greater risk over $10k for one year? I don't think so. 

 

It's all a farce. Stick to the FICOs. The future can never be predicted with any accuracy. On the other hand, credit card companies can lock you out of credit, reduce your credit line, or close your account altogether. 

 

To me, an FR from a credit card company that I have low utilization and a perfect payment history for would be an insult and would compel me to close my account. I don't care how much credit line I have with them. It's like what else do you want me to do? I can't stand situations where I have to walk on eggshells when I'm doing what I'm supposed to do and playing by the rules. If I have to worry about some FR every year, it's not worth it. I'd rather go back to cash. You don't need a FR for that. :-)


LOL.  People with low income and high credit limits could be someone trying to do a break-out.  Really if you have large amount of savings and a large income you are less risk than someone with low income and no savings.  Just common sense.  And if you are lying on your credit report for your income I would think you are a bigger risk.  I mean it comes down to is it worth the hassle.  Bank of America asked me for my personal Tax returns for the last 2 years for a business credit card with a $200 bonus. Especially since I have had direct deposit to the accounts for the last 20 years.  No way is that worth the hassle. But Amex has a ton of cards with big sign up bonuses. To be shut out of Amex and all their cards seems like a big hit so I would give them my tax returns. Nothing on my returns that I want to hide.  

 

If you open a bank account they have your SSN and Driver's License number. Seems like that is enough information to steal your identity.  Really not afraid for Amex to know that I donated to the Zoo, a local Soup Kitchen and Goodwill. 

More cards than I can mention in a signature.
Message 22 of 44
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Regular Contributor

Re: AMEX Financial Review: DO NOT BE SCARED

I don’t agree with the FRs, if my credit scores are great , and I’m paying in full every single month , and if I have perfect 100% payments non missed in the years I have credit .. I would feel insulted . And honestly I would just close my account .. my score wouldn’t b perfect anymore .. it would have a closed account but I won’t do that .



Message 23 of 44
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Mega Contributor

Re: AMEX Financial Review: DO NOT BE SCARED


@Jaybeltran805 wrote:
I don’t agree with the FRs, if my credit scores are great , and I’m paying in full every single month , and if I have perfect 100% payments non missed in the years I have credit .. I would feel insulted . And honestly I would just close my account .. my score wouldn’t b perfect anymore .. it would have a closed account but I won’t do that .

Amex doesn't do FRs for the fun of it, there needs to be a triggering reason (which may well turn out to be totally innocent).  So those complaining about low util, 100% payment etc, if there is no spike or anything, an FR is very unlikely.

 

And again, other issuers will just close the card.   At least Amex gives you an option whether you wish to do extra steps or not.

Message 24 of 44
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Community Leader
Super Contributor

Re: AMEX Financial Review: DO NOT BE SCARED


@Jaybeltran805 wrote:
I don’t agree with the FRs, if my credit scores are great , and I’m paying in full every single month , and if I have perfect 100% payments non missed in the years I have credit .. I would feel insulted . And honestly I would just close my account .. my score wouldn’t b perfect anymore .. it would have a closed account but I won’t do that .

You would be fine regardless, because a closed account in good standing stays on your credit reports as "positive" for 10 yrs, still adding to you AHOA in a good way. Closed accounts in good standing (meaning paid/current/closed/$0 bal), are postive ones. 

 

Agree with @longtimelurker


My rebuild worked for me, but won't necessarily work for you!
BK7 D/C- 08/2013
Message 25 of 44
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Super Contributor

Re: AMEX Financial Review: DO NOT BE SCARED


@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. 

;
Starting Score: EQ: 714, TU 684
Current Score: EQ: 725 7/30/13, TU 684 6/2013, Exp 828 5/2018, Last App 8/5/17
Goal Score: 800 (Achieved!) In garden until Sepetember 2019
Message 26 of 44
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Super Contributor

Re: AMEX Financial Review: DO NOT BE SCARED


@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. 

;
Starting Score: EQ: 714, TU 684
Current Score: EQ: 725 7/30/13, TU 684 6/2013, Exp 828 5/2018, Last App 8/5/17
Goal Score: 800 (Achieved!) In garden until Sepetember 2019
Message 27 of 44
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Moderator

Re: AMEX Financial Review: DO NOT BE SCARED

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.

Message 28 of 44
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Super Contributor

Re: AMEX Financial Review: DO NOT BE SCARED


@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. 

;
Starting Score: EQ: 714, TU 684
Current Score: EQ: 725 7/30/13, TU 684 6/2013, Exp 828 5/2018, Last App 8/5/17
Goal Score: 800 (Achieved!) In garden until Sepetember 2019
Message 29 of 44
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Moderator

Re: AMEX Financial Review: DO NOT BE SCARED


@red259 wrote:

@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. 


Oh I am one of those hence this forum, but paid it back painfully..  Even if that might be the case as stated house is secured and CC is unsecured and house can be yanked from you where-as if you default on big sum of CC debt and don't have the means to pay it back then the CC issuer has little recourse.   Now if you are a higher earner and default on a CC for a good amt. most likely you will have a judgement or garnishment.  CC issuers aren't any saints by any means but it is a risky business I would say more risky then home loans hence my comparison and the forms required by both is all I was trying to argue although i did state they savings "might" be passed on; as I work in insurance industry and if we had less greedy lawyers/individuals we would certainly lower our premiums to our people we insure vs. paying out million dollar claims(granted some of the claims are legit alot of say 70% are bogus, just got to get the right jury)

Message 30 of 44
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