AMEX PLATINUM CHARGE CARD FINANCIAL REVIEW

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Joonbugz22
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AMEX PLATINUM CHARGE CARD FINANCIAL REVIEW

Postby Joonbugz22 » Tue Jan 26, 2016 9:27 pm

I've just received my Amex platinum and I couldn't be happier . I am however , a bit nervous about everything I've read about FR's.
Here's why.
In the application it asked for household income which includes investments , child support , or the income of any person whose money is easily accessible to you . I work part time(3days) and I have 2 children . My fiancé works full time and makes the majority of our income (over 109k) . We file our taxes separately . I have read (ad nauseoum ) about the perils of such FR's and have spoken to 3 of my friends, all of whom have Amex cards, all of whom have had a FR one time ,none of whom have had a situation like mine.
I guess I'm worried that when the time comes that I do get a FR , they'll pull my taxes and see a very low income compared to what I put on my application . Please note again that I gave an honest household income which was what was requested in the application . Any thoughts on this? Do they just want to see that I'm working? Also , I have not had a FR done yet but looking to avoid it. Any ideas ? Thanks so much for your help!!!


CardAttack
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Re: AMEX PLATINUM CHARGE CARD FINANCIAL REVIEW

Postby CardAttack » Tue Jan 26, 2016 10:04 pm

I've had an Amex for 30 years, including a Platinum, and never had a FR.

Can they really access your tax info?

It sounds like you answered their questions honestly on the app, so why would there be a problem?

If you use the card responsibly, would they really want to do a FR?
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Joonbugz22
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Re: AMEX PLATINUM CHARGE CARD FINANCIAL REVIEW

Postby Joonbugz22 » Wed Jan 27, 2016 4:33 am

Hi! Yes they can access your tax info . From what I've heard they suspend your account and you either get a phone call or find out that your charge is declined . They then give you two options : 1- to comply with them and sign a release form giving them access to your tax forms via the IRS or 2- you tell them no at which point they close your accounts . I've read so many different situations where people have inflated their household income or where they've had several assets but zero income to claim on they're tax return (which obviously meant that when Amex pulled their tax info , it would've shown that they made nothing.) but never end up reading what the final conclusion of the matter is. Some people say they've had credit limits put on their charge card.
I'm also trying to see if there is any way to avoid this all together.

Joonbugz22
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Re: AMEX PLATINUM CHARGE CARD FINANCIAL REVIEW

Postby Joonbugz22 » Wed Jan 27, 2016 4:42 am

Also just wanted to point out that they will do FR on just about anyone , esp if they suspect it's a suspicious purchase ( any purchase or amount that's out of your usual spending pattern), whatever that means. I'm so confused . A credit/ charge card is for convenience . If one day I'm buying a coffee and the next a bag and the next some furniture , this would probably raise a red flag. I thought having a charge card was for convenience and flexibility. I'm now so nervous to use my Amex .

takeshi
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Re: AMEX PLATINUM CHARGE CARD FINANCIAL REVIEW

Postby takeshi » Wed Jan 27, 2016 7:20 am

I always recommend considering the evidence that a creditor will require for income verification. At this point, it's too late to worry about it. If an FR happens it will happen but it's not just going to happen randomly. It will require activity that AmEx considers risky. Best you can do is to try to learn from those that have gone through an FR what triggered the FR though that can be tricky as most forum users that have experienced adverse action seem to claim that they did nothing that led to the adverse action.

CardAttack wrote:Can they really access your tax info?

They can with a 4506-T which is what they use for income verification.

CardAttack wrote:I've had an Amex for 30 years, including a Platinum, and never had a FR.

Don't conflate "I have never" and "never happens". FR's are based on credit profile and "other factors" that AmEx doesn't disclose.

CardAttack wrote:If you use the card responsibly, would they really want to do a FR?

What one considers responsible and what AmEX considers responsible aren't always the same thing, However, credit forum users to tend to be obsessed with fear of FR.

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Vattené
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Re: AMEX PLATINUM CHARGE CARD FINANCIAL REVIEW

Postby Vattené » Wed Jan 27, 2016 4:19 pm

takeshi wrote:However, credit forum users to tend to be obsessed with fear of FR.

+1 If you go looking for what people on credit forums post about FR, you aren't going to get representative results. You'll hear from people experiencing the worst-case scenarios (and likely from people that fabricated and/or couldn't support the information they provided).

I haven't had to go through the process, but I doubt they are going to do a FR based on suspicious activity. It will more likely be after your account falls out of good standing or you start running up huge purchases that are out of character for your account. I also doubt they'll flag purchases of coffee, then a bag, then furniture as suspicious unless the latter are for huge amounts of money in wildly different geographic areas (useless anecdote: I made a Louis Vuitton purchase with a debit card in a city I previously never made a purchase in without a problem). You just got the card, so Amex doesn't yet have a good idea of what is expected/nonsuspicious activity, but the algorithms banks use to make such determinations are pretty sophisticated.

You haven't inflated anything and you've used income sources Amex itself considers legitimate. Hopefully it doesn't happen to you, but if it does and they see your tax return doesn't match up to what you've reported to them, you can provide you fiance's tax return as supporting documentation (may not be a spouse but it is a person's income to which you have regular access). I'm not saying the process will be painless or even that you'll glide through it easily, but if you provide honest information you should be able to support it.

Before FR happens you'll have to do something to trigger it. I wouldn't worry too much about it at this point and just enjoy your new card!
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aj023
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Re: AMEX PLATINUM CHARGE CARD FINANCIAL REVIEW

Postby aj023 » Wed Jan 27, 2016 5:50 pm

Vattené wrote:
takeshi wrote:However, credit forum users to tend to be obsessed with fear of FR.

+1 If you go looking for what people on credit forums post about FR, you aren't going to get representative results. You'll hear from people experiencing the worst-case scenarios (and likely from people that fabricated and/or couldn't support the information they provided).

I haven't had to go through the process, but I doubt they are going to do a FR based on suspicious activity. It will more likely be after your account falls out of good standing or you start running up huge purchases that are out of character for your account. I also doubt they'll flag purchases of coffee, then a bag, then furniture as suspicious unless the latter are for huge amounts of money in wildly different geographic areas (useless anecdote: I made a Louis Vuitton purchase with a debit card in a city I previously never made a purchase in without a problem). You just got the card, so Amex doesn't yet have a good idea of what is expected/nonsuspicious activity, but the algorithms banks use to make such determinations are pretty sophisticated.

You haven't inflated anything and you've used income sources Amex itself considers legitimate. Hopefully it doesn't happen to you, but if it does and they see your tax return doesn't match up to what you've reported to them, you can provide you fiance's tax return as supporting documentation (may not be a spouse but it is a person's income to which you have regular access). I'm not saying the process will be painless or even that you'll glide through it easily, but if you provide honest information you should be able to support it.

Before FR happens you'll have to do something to trigger it. I wouldn't worry too much about it at this point and just enjoy your new card!


A financial institution doesn't just arbitrarily use IRS information without your permission. They only know what is on their own books and records, not other institutions.

A financial institution cares about a few things. Getting paid back and trying to make revenue and risk management. They also are afraid of liability from other parties. They can ask for tax info and you can decline to provide it for credit line increases for example.

But if you were approved for the card and have a high fico score and make payments regularly, they are not going to come out of the blue and make you provide information because you charged more money in a particular month.

Credit card companies can not prevent defaults from consumers. They can review the application based on stated information and make a judgement if they accept or deny and can ask for more information during the application process.

I never heard of anyone who has gotten approved for a credit card and been responsible who has ever had their information checked. I did have an institution asked me for IRS information if I wanted an increased credit line and I declined to provide information and never had a late payment with the institution and paid off all obligations in full. I quit using the account and over time, they closed it out for non usage but did notifiy me they were closing the account for non usage if I didn't use the card. Another institution closed an account without telling me after I tried to cancel it but they claimed they would reduce my interest rate even though I didn't pay interest so I kept the card. Then I get a letter for a new rate higher than my old one and they closed out the card on their own for non usage which I only knew about after I ran a credit report and saw it was cancelled.

Just enjoy the american express and ignore all the people who don't know what they are talking about.

yfan
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Re: AMEX PLATINUM CHARGE CARD FINANCIAL REVIEW

Postby yfan » Wed Jan 27, 2016 6:53 pm

The key is "income easily accessible to you." Is your fiancee's income easily accessible to you, and if so, will she or he be willing to sign a release for Amex so that they can pull his tax records too?

Also, when is the wedding (Congrats, by the way!)? If your FR comes after you are married and begin to file jointly, that should also be a non-issue.

aj023
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Re: AMEX PLATINUM CHARGE CARD FINANCIAL REVIEW

Postby aj023 » Wed Jan 27, 2016 6:59 pm

yfan wrote:The key is "income easily accessible to you." Is your fiancee's income easily accessible to you, and if so, will she or he be willing to sign a release for Amex so that they can pull his tax records too?

Also, when is the wedding (Congrats, by the way!)? If your FR comes after you are married and begin to file jointly, that should also be a non-issue.


No one should have to disclose any info. The topic was not anything was forced to be disclosed, it was that poster claimed they heard stories of others who had which is false. They don't review financials of active satisfactorily paid accounts. I don't know of anyone that has happened to.

You claim you knew of others but obviously are leaving out info on their own stories. If it even did happen, which if it did would be so rare, the abuse would have to be very obvious.

yfan
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Re: AMEX PLATINUM CHARGE CARD FINANCIAL REVIEW

Postby yfan » Wed Jan 27, 2016 7:46 pm

aj023 wrote:
yfan wrote:The key is "income easily accessible to you." Is your fiancee's income easily accessible to you, and if so, will she or he be willing to sign a release for Amex so that they can pull his tax records too?

Also, when is the wedding (Congrats, by the way!)? If your FR comes after you are married and begin to file jointly, that should also be a non-issue.


No one should have to disclose any info. The topic was not anything was forced to be disclosed, it was that poster claimed they heard stories of others who had which is false. They don't review financials of active satisfactorily paid accounts. I don't know of anyone that has happened to.

I think the topic, or at least part of it, is OP's fear that should an FR happen, they could get shut down because their fiancee's income is not reflected on their tax return. Nowhere has OP indicated that s/he is not willing to release the info for themselves.

No one is forced to disclose any info. Everyone has a choice should an FR situation - with Amex or any other lender - arise. Provide the lender access to your tax returns or close your accounts with them. Amex does not have a right to anyone's tax returns, but they do have the right not to provide access to their products if one refuses to comply with their conditions.



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