Will this new app trigger AMEX financial review?

[jcwang]

Hey everyone, so I’ve been an AMEX cardholder for ~16 years and currently have 4 cards with them: Platinum, Delta Skymiles Reserve, Hilton Aspire (which used to be the Citi Hilton Honors card prior to the transition a few years back) and the standard Hilton card which I no longer use but already had when AMEX became exclusive partner with Hilton. Unfortunately, I cannot convert this card to something else due to the co-brand partnership.

It was recently brought to my attention that I am pre-approved for the Blue Cash Preferred card which piqued my interest for the 6% cash back on groceries/streaming and 3% back on transit/gas. These purchases typically would go on the platinum each month which only earns me 1x MR point so I’d shift our spend in those categories to the BCP to maximize.

I’m fairly certain I’d get away with just a soft pull given I’m pre-approved and an existing cardholder but the problem lies with my cumulative credit limits. My Delta Reserve and Hilton Aspire combine for ~$40k+, which exceeds the $35k general consensus cumulative threshold that triggers a financial review. I’m not keen on lowering my limits, primarily for utilization reasons and I know AMEX freezes all your accounts during a FR which can take a few weeks/month. We literally put all our monthly spend through the AMEX cards.

Also, my wife and I both got new jobs in December which increased our HH income by about $30k but that wouldn’t reflect on the most recent tax return that AMEX would likely request a transcript of in the event of a FR - a point that may not bode well in our favor.

So if I apply, would I be subject to the dreaded FR? Should I just forget about the new card? Thoughts? Feel free to ask any questions, thanks!

[NRB525]

I think the situation you may be concerned about is income verification, a much less onerous process than FR. However even the IV is not certain, given the long history you already have with AMEX. 

They won't shut off your existing cards while the income verification is open. 

[Remedios]

35K triggering FR is nonsense.

I think you are convoluting FR with income verification which can be requested at any point. I got it when my card was above $50K, and they did not request tax returns, it was either one time access to bank account or three consecutive statements. 

FR is whole another animal, so I wouldn't worry about it.

It is reserved for what Amex may see as suspicious activity, spending above the income, etc 

As far as new application income wise, only state what you can prove vs projected income. 

Once approved, if you're unhappy with limit you can move it between the cards you have. 

[unsungivy]

You should be fine. Go for it. That will complement your current lineup nicely.

[SouthJamaica]

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@jcwang wrote:

Hey everyone, so I’ve been an AMEX cardholder for ~16 years and currently have 4 cards with them: Platinum, Delta Skymiles Reserve, Hilton Aspire (which used to be the Citi Hilton Honors card prior to the transition a few years back) and the standard Hilton card which I no longer use but already had when AMEX became exclusive partner with Hilton. Unfortunately, I cannot convert this card to something else due to the co-brand partnership.

It was recently brought to my attention that I am pre-approved for the Blue Cash Preferred card which piqued my interest for the 6% cash back on groceries/streaming and 3% back on transit/gas. These purchases typically would go on the platinum each month which only earns me 1x MR point so I’d shift our spend in those categories to the BCP to maximize.

I’m fairly certain I’d get away with just a soft pull given I’m pre-approved and an existing cardholder but the problem lies with my cumulative credit limits. My Delta Reserve and Hilton Aspire combine for ~$40k+, which exceeds the $35k general consensus cumulative threshold that triggers a financial review. I’m not keen on lowering my limits, primarily for utilization reasons and I know AMEX freezes all your accounts during a FR which can take a few weeks/month. We literally put all our monthly spend through the AMEX cards.

Also, my wife and I both got new jobs in December which increased our HH income by about $30k but that wouldn’t reflect on the most recent tax return that AMEX would likely request a transcript of in the event of a FR - a point that may not bode well in our favor.

So if I apply, would I be subject to the dreaded FR? Should I just forget about the new card? Thoughts? Feel free to ask any questions, thanks!

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No, it's highly unlikely.

There's no "consensus 35k cumulative threshold". It is believed that going over 35k on a single card might sometimes trigger income verification.  I have 94k in aggregate limits with Amex and have never seen a financial review or been asked for income verification.

If you did have to prove an increase in income, btw, you would just produce a pay stub.

Just go ahead and apply.

[GatorGuy]

As already mentioned it isn't a financial review but income verification. It also isn't usually for $35k cumulative credit but on an individual card. And it is very much profile dependent. I have $35k on my BBP and wasn't asked for IV. My wife has $40k on her Hilton card and wasn't asked for IV at her $35k approval or for her first CLI.

[jcwang]

Thanks, everyone for easing my mind - AskSebby has a lot of explaining to do! 

[FinStar]

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@jcwang wrote:

Thanks, everyone for easing my mind - AskSebby has a lot of explaining to do! 

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Well, therein lies the issue, AskSebby. There have been plenty of misinformation instances by that particular blogger. Obviously, it's always good to do your homework, such as checking a variety of resources, but AskSebby often gets it wrong. Plain and simple.

[coldfusion]

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@GatorGuy wrote:

As already mentioned it isn't a financial review but income verification. It also isn't usually for $35k cumulative credit but on an individual card. And it is very much profile dependent. I have $35k on my BBP and wasn't asked for IV. My wife has $40k on her Hilton card and wasn't asked for IV at her $35k approval or for her first CLI.

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The $35K figure isn't any kind of official governance or guidance from American Express either.   It's pretty much just a number that based upon a number of data points gathered several years ago appeared to be a common threshold that triggered income verification requests.

[OmarGB9]

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@jcwang wrote:

Thanks, everyone for easing my mind - AskSebby has a lot of explaining to do! 

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I would strongly recommend you NOT AskSebby anymore.