Declined For American Express Sync because of charge off

[Denny33142]

Sorry to wake up a month old thread but i wanted to inform you guys that the BofA Charge Off finally updated on Experian to Paid with a $0 balance, a month ago Amex had declined me for the zync with one of the main factors being High Utilization (around 60%) however now that the BofA CO is no longer reporting a balance my Utilization has gone down to 11%.

So i thought i would try my luck and call Amex tommorow for reconsideration, i will update the thread tommorow, hopefully they will at least accept to do a manual check.

[Anonymous]

Good luck!

[Wolf3]

IMO, It is way too soon to try for AMEX.     It is probably too soon to try for anything unsecured, but I would suggest your next goal should be something like Captial One or HSBC, or a store card.  .  

[LilloEsquilo]

@Anonymous wrote:

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@p- wrote:

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@Denny33142 wrote:

I applied for the Amex Sync card and was instantly declined for the following reason:

Utilization Too High

Seriously Delinquent accounts

Late Payments on Accounts

I checked all of my credit reports and the only negative item is a Bank Of America Charge Off :

Date Closed: Dec, 2010

Credit Card

Credit Limit: $500

High Balance: $796

Revolving Account

Individual Account

Banks

I have 2 credit cards both with a combined utilization of 16% and no late payments, and the only negative item on my account on all 3 reports is that 1 charge off, i have no collection accounts, my question is how can 1 negative item hurt my score and ability to get credit so much? and what's worst all my open accounts are payed as agreed with a utilization of 16%, yet i am getting declined for credit cards because that charge off is counting towards my utilization which is hurting me real bad, is there anyway i can resolve this? am i seriously not going to be able to get a decent credit card because of 1 negative item on my report?

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Think about it...  If I ask you to borrow a hundred bucks, and a guy next to you pipes up "hey, you never paid the hundred bucks you owe me!" how likely is it that you would give me the money?  They don't want to give you a credit card, because you never paid the last one.  They assume you won't pay them either.  Why would they throw money away like that?

You should contact BofA and see if they will accept a PFD.  This is a major red flag you want off of your report, or you will stay in the high risk category.  Good luck!

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+1

Only problem is that BoA has a reputation for no PFDs or GW adjustments.  They are extremely difficult to deal with.

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Kind of funny that BoA is so difficult to deal with, considering all the bailout money they got. But hey, that's DIFFERENT right - flying to DC on your corporate jet and demanding the taxpayers give you a blank check for your stupid behavior is TOTALLY, and COMPLETELY different from this I know.

[Denny33142]

It might be too soon but i want to at least get it out of the way, otherwise its going to keep bothering me that i didn't at least try.

By the way the current scores on my sig are from before the CO updated to paid, my TU score went from 583 to low 600's when BofA updated, i am guessing it also had similar effects on EQ and EX.

[Anonymous]

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@Denny33142 wrote:

I applied for the Amex Sync card and was instantly declined for the following reason:

Utilization Too High

Seriously Delinquent accounts

Late Payments on Accounts

I checked all of my credit reports and the only negative item is a Bank Of America Charge Off :

Date Closed: Dec, 2010

Credit Card

Credit Limit: $500

High Balance: $796

Revolving Account

Individual Account

Banks

I have 2 credit cards both with a combined utilization of 16% and no late payments, and the only negative item on my account on all 3 reports is that 1 charge off, i have no collection accounts, my question is how can 1 negative item hurt my score and ability to get credit so much? and what's worst all my open accounts are payed as agreed with a utilization of 16%, yet i am getting declined for credit cards because that charge off is counting towards my utilization which is hurting me real bad, is there anyway i can resolve this? am i seriously not going to be able to get a decent credit card because of 1 negative item on my report?

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I don't mean to be rude but why would you even consider American Express if you are hardly in the 500 club? You have delinquent accounts. You need to rebuild.

The ZYNC is a charge card with no real credit limit. You could go to the mall and charge $20,000.  Do you see how much of a risk this would be?

Rebuild with secured cards, subprime cards (such as Orchard Bank or Credit One Bank), and store cards. It takes some time but it is relatively easy

[Denny33142]

I called and spoke to a lady who said she would forward my application to the new accounts department for recon, she also said to fax a copy of my credit report.

I won't be upset if i get declined at least i know that i tried everything possible.

[MagicShot]

if it was closed in Dec of 2010 due to CO? they prolly wont recon it till its a year maybe 2 years old. I got my first BOA CC didnt have to recon but they said to call to verify info. I applied for ther accelerated AMEX rewards card. When I looked it up said requires excellent credit. I called and verified my info and income ect. they approved me for 2k on that card, I since got a Meleluca Mastercard  & Sig Visa both with 5k at the bigining of the year.

[Denny33142]

Well, i got the call and was told that the manual review was declined but that they had used the same report from when i was originally declined (when it still had the outstanding balance of the CO), they said that if i wanted them to review my updated report that they would have to do another hard pull, i told them forget about it i already have 3 hard pulls from them in the last 2 years.

I wish EX would still provide Fico scores to consumers, kind of hard to know the right time to reapply when i can't even buy an EX Fico.

[Anonymous]

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@Anonymous wrote:

I don't mean to be rude but why would you even consider American Express if you are hardly in the 500 club? You have delinquent accounts. You need to rebuild.

The ZYNC is a charge card with no real credit limit. You could go to the mall and charge $20,000.  Do you see how much of a risk this would be?

Rebuild with secured cards, subprime cards (such as Orchard Bank or Credit One Bank), and store cards. It takes some time but it is relatively easy

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Charge cards have very real limits, they just rarely disclose them.  In some cases, AmEx does state them at the outset (some people have been approved for Zync with a $500 limit and they must agree to use AutoPay).  But even beyond those circumstances, AmEx has a figure for each account that restricts monthly spending (or more precisely, total exposure) to a very specific number.  This was very common several years ago when AmEx tightened their belt and imposed hard limits on some members' charge cards, some after financial reviews.  (When I first got a charge card, I hit my limit before the end of my first statement and had to PIF before I could resume.)

The good thing is that charge cards tend to be more flexible with exceptions, which means if AmEx typically allows you to make $5,000 in purchases one month, but you really want to put a $5,500 purchase on a card with a presently $0 balance, you could call and ask-- they'll do a quick account review, maybe do a soft pull and then let you know.  If, however, AmEx allows you to charge $5k/month and you suddenly want to charge $25,000, you'll most likely be told no.

So more flexible than average credit cards, yes; but a spending limit nonetheless.