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Amex denial and recon experience

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New Visitor

Amex denial and recon experience

Hello all,

I have lurked here for a few days after my denial with Amex looking for some info, and picked up bits and pieces of answers. I do have a few questions, but let me throw in my story first.

I am currently six years and 10 months post Ch7 BK (discharged end of August of 2004). Since then, I have been rebuilding my credit. I have never been late on a payment, credit utilization never hit the 5% mark, etc. This is what I have on my reports:

USAA Car loan: $10,100 Balance
USAA MasterCard: $7000 CL
USAA Amex: $4000 CL (I made the mistake in assuming that this was an actual Amex card).
PenFed Platinum Rewards: $4500 CL (Everyday card, average about $40 cash-back monthly).
LMCU Platinum: $2000 CL (Local Credit Union)
Discover More: $1500 CL (Big surprise that they gave me one, I discharged about $2000 with them in my BK).

I don't have FICO scores, but the Fako scores through USAA credit monitoring reads 748, 760, 770 for Equifax, Trans, Experian respectively. Always PIF.

A few days ago I app'd for the Zync card after chatting with an Amex rep. She stated that a BK does NOT automatically disqualifies me for the card. After chatting with the rep, I applied and was denied because of the BK. I called the 1-800 number for new accounts. I spoke with a very friendly rep. She said that typically the BK will have to fall off the report before I could be approved. However, after a few minutes of discussion I was able to get her to forward my reconsideration to the underwriters (I believe that's what she said). She said she would get back with me when she hears something. She actually gave me her first and last name, and her direct extension.

Well, the next day, to my surprise, she did call back. I honestly was not expecting a call back. She explained that the underwriter(s) suggested that I apply again in late August/ early September, which will be seven years post BK (she knew the exact discharge date of my BK), which is what they want to see. She also said that it is not a guaranteed approval, however, my credit history will weigh more on their decision than the BK.

Honestly, I wasn't considering app'ing again, but what got me thinking was the fact that she did call back with answers and suggestions. I don't need the card, but with the amount I spend on airfare, rentals, hotels and gas, I think I could benefit more with Amex's rewards. But if I am being fed a line of BS, I'm not going to bother.

Do you think this is on the level?
Message 1 of 8
7 REPLIES 7
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Frequent Contributor

Re: Amex denial and recon experience

Sounds to me like they're interested.  Remember, if you do call back in September they are not under any obligation to accept you--and it may not be your fault if they don't.  I think we sometimes forget that banks must borrow money themselves to cover the debt that their cardholders incur.  They don't have hundreds of millions of dollars in some vault. They borrow from the Fed and the Fed charges the banks money when a bank borrows from them to cover what we charge.  How expensive or cheap the money is to the bank depends on what the Fed is trying to do with the economy overall.  In late 2008, GE Capital was paying 17% on what they borrowed, so you can imagine what the interest rate was that they charged cardholders serviced by GE (much higher than 17% else they wouldn't make a profit.)  So around the time you reapply, AE may decide they want no new cardholders or they (more likely) become a bit more picky.  That's no fault of yours--just company policy to avoid risk.

 

If I were you, I'd call that CSR back just before you reapply and say "Remember me . . . Do I still have a good chance to be approved?"

Message 2 of 8
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Senior Contributor

Re: Amex denial and recon experience


@Quixote wrote:
Hello all,

I have lurked here for a few days after my denial with Amex looking for some info, and picked up bits and pieces of answers. I do have a few questions, but let me throw in my story first.

I am currently six years and 10 months post Ch7 BK (discharged end of August of 2004). Since then, I have been rebuilding my credit. I have never been late on a payment, credit utilization never hit the 5% mark, etc. This is what I have on my reports:

USAA Car loan: $10,100 Balance
USAA MasterCard: $7000 CL
USAA Amex: $4000 CL (I made the mistake in assuming that this was an actual Amex card).
PenFed Platinum Rewards: $4500 CL (Everyday card, average about $40 cash-back monthly).
LMCU Platinum: $2000 CL (Local Credit Union)
Discover More: $1500 CL (Big surprise that they gave me one, I discharged about $2000 with them in my BK).

I don't have FICO scores, but the Fako scores through USAA credit monitoring reads 748, 760, 770 for Equifax, Trans, Experian respectively. Always PIF.

A few days ago I app'd for the Zync card after chatting with an Amex rep. She stated that a BK does NOT automatically disqualifies me for the card. After chatting with the rep, I applied and was denied because of the BK. I called the 1-800 number for new accounts. I spoke with a very friendly rep. She said that typically the BK will have to fall off the report before I could be approved. However, after a few minutes of discussion I was able to get her to forward my reconsideration to the underwriters (I believe that's what she said). She said she would get back with me when she hears something. She actually gave me her first and last name, and her direct extension.

Well, the next day, to my surprise, she did call back. I honestly was not expecting a call back. She explained that the underwriter(s) suggested that I apply again in late August/ early September, which will be seven years post BK (she knew the exact discharge date of my BK), which is what they want to see. She also said that it is not a guaranteed approval, however, my credit history will weigh more on their decision than the BK.

Honestly, I wasn't considering app'ing again, but what got me thinking was the fact that she did call back with answers and suggestions. I don't need the card, but with the amount I spend on airfare, rentals, hotels and gas, I think I could benefit more with Amex's rewards. But if I am being fed a line of BS, I'm not going to bother.

Do you think this is on the level?

I'd say that the AmEx representative went above and beyond the call of duty. 

 

Nobody can say what they will do when the Bk falls off and you apply again, but I'd give it a shot.  Are there any other derogatories on your CR?

IAALBNYL
Message 3 of 8
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Regular Contributor

Re: Amex denial and recon experience


@gangof4 wrote:

 I think we sometimes forget that banks must borrow money themselves to cover the debt that their cardholders incur.  They don't have hundreds of millions of dollars in some vault. They borrow from the Fed and the Fed charges the banks money when a bank borrows from them to cover what we charge.  How expensive or cheap the money is to the bank depends on what the Fed is trying to do with the economy overall.  In late 2008, GE Capital was paying 17% on what they borrowed, so you can imagine what the interest rate was that they charged cardholders serviced by GE (much higher than 17% else they wouldn't make a profit.)  So around the time you reapply, AE may decide they want no new cardholders or they (more likely) become a bit more picky.  That's no fault of yours--just company policy to avoid risk.

 

If I were you, I'd call that CSR back just before you reapply and say "Remember me . . . Do I still have a good chance to be approved?"


Oh...poor banks..

Message 4 of 8
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Senior Contributor

Re: Amex denial and recon experience


@daylove wrote:

@gangof4 wrote:

 I think we sometimes forget that banks must borrow money themselves to cover the debt that their cardholders incur.  They don't have hundreds of millions of dollars in some vault. They borrow from the Fed and the Fed charges the banks money when a bank borrows from them to cover what we charge.  How expensive or cheap the money is to the bank depends on what the Fed is trying to do with the economy overall.  In late 2008, GE Capital was paying 17% on what they borrowed, so you can imagine what the interest rate was that they charged cardholders serviced by GE (much higher than 17% else they wouldn't make a profit.)  So around the time you reapply, AE may decide they want no new cardholders or they (more likely) become a bit more picky.  That's no fault of yours--just company policy to avoid risk.

 

If I were you, I'd call that CSR back just before you reapply and say "Remember me . . . Do I still have a good chance to be approved?"


Oh...poor banks..


Sure.  They should just give away free money.

IAALBNYL
Message 5 of 8
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Regular Contributor

Re: Amex denial and recon experience

Well, credit card is like a wealth allocation game to cc companies and they make money hosting the game.


Starting Score: EQ: 703 (4/2011);
Current Score: EQ: 738 (04/2013)

Goal Score: ALL 800

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Message 6 of 8
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Member

Re: Amex denial and recon experience

Yes, the representative went the extra mile. Other than the BK, there are no other derogatories on my CR.
Message 7 of 8
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Moderator Emerita

Re: Amex denial and recon experience

I also agree that it sounds as though they gave real consideration to your app, and that your chances for Amex approval in the not too distant future are very real!

 

I know you said you applied for Zync, but if you hold off until Septemberish, you might find that the Costco Amex might be a better deal, and get your foot in the door. There have a been recent reports of the Costco Amex (rock solid rewards card) card being approved even with BK reporting, so I think that the rep was being both truthful about BK not being an automatic denial (anymore). I don't recall any other Amex card being approved with a BK still reporting, but maybe some other members can chime in with their positive experiences as well.  IF you do decide to go after the Costco Amex, be sure to apply in a Costco store-- there, you can get instant approval.

 

Congrats on doing such an amazing job of rebuilding, post-bankruptcy, as well!

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