How do delinquent mortgage payments affect credit card (AMEX Rewards Card)

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SlowDecline
 
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How do delinquent mortgage payments affect credit card (AMEX Rewards Card)

Postby SlowDecline » Wed Mar 02, 2011 10:11 pm

Situation: went through a divorce, can't afford full home mortgage, delinquent payments (4 months at this point), trying for a loan mod through the lender and if that does not work I will be forced to a short sale situation.

My credit situation: AMEX Gold Rewards Card: perfect payment history.

Question: How will my house situation affect my AMEX card? Will I lose the card/acct be closed and all reward points lost or is there anything at all positive that I can hope for with my card?

Additional: I am on time for ALL other bills I have other than the mortgage.

Thank you in advance for any replies.


DoingHomework
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Postby DoingHomework » Thu Mar 03, 2011 1:36 pm

I think AMEX is pretty thorough about watching your credit for red flags. Lot's of people report all kinds of "coincidences" with AMEX closing accounts and so forth after losing a job or being late on another card. Universal default is now illegal so ther eare restrictions on what they can do. But I suspect they have ways around the new laws.

Unfortunately I think if I were in your position I would start using my points as quickly as possible to avoid losing them. Transfer them to an airline or something!

debitcardsblow
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Postby debitcardsblow » Thu Mar 03, 2011 1:54 pm

With the universal default being illegal what would AMEX legally be able to do?

DoingHomework
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Postby DoingHomework » Thu Mar 03, 2011 2:15 pm

debitcardsblow wrote:With the universal default being illegal what would AMEX legally be able to do?


Reduce your credit limit to $100, decline purchases, cancel your card because your credit score has dropped, who knows.

I read recently that they have a zero tolerance policy on some things. If you have EVER defaulted on an AMEX you will likely never get one again in your life. They are very strict about it. Yet some people say they have gotten another card after declaring KB and so forth. AMEX is their own thing and kind of hard to predict. They are actually suing the government over various new rules and laws are are refusing to follow them while in litigation. So far they have not been challenged and likely will not be.

debitcardsblow
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Postby debitcardsblow » Thu Mar 03, 2011 2:29 pm

That is insane. Which rules are AMEX challenging? Do you have a link where I could read more about this?

Keysmasher
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Postby Keysmasher » Thu Mar 03, 2011 9:12 pm

I believe all of this information is implicitly understood, there is no "in-writing" and is only verified through less than reliable consumers (e.g American Express "blacklist").

i_t_man
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Postby i_t_man » Thu Mar 03, 2011 10:53 pm

If you're 4 months behind, that means 4 separate dings to your credit in the form of a 30-day late report. That had to have hit your score pretty hard. If AMEX sees a sizable drop in your score, they can cancel you even if you're current with them (I speak from experience).

I'm not trying to be a downer but I think you're living on borrowed time.

DoingHomework
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Postby DoingHomework » Fri Mar 04, 2011 5:31 pm

debitcardsblow wrote:That is insane. Which rules are AMEX challenging? Do you have a link where I could read more about this?


They are challenging rules against fees they charge to merchants, rules that allow them to punish merchants that offer cash discounts, and various other rules like that. Visa and Mastercard did the same thing but have settled.

I suspect AMEX will continue doing "universal default" but they will not call it that. They are already one of the few credit card companies that occasionally demand a financial review from card holders where in they demand tax returns, proof of income, and all sorts of other stuff if you want to continue carrying their card.

craigm1
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amex and bankruptcy

Postby craigm1 » Fri Mar 04, 2011 7:56 pm

I guess I'm one of the lucky few I filed bankruptcy in 94 and had a gold amex and an optima card must have owed at least 10k and in 08 got a blue sky card and now have converted it to a cash card with a limit of over 5k

craigm
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Mogul of Pineapples
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Postby Mogul of Pineapples » Fri Mar 04, 2011 10:42 pm

Good for you Craig because I have read others on here who have claimed it's impossible to get an American Express after a bankruptcy that included their card(s). If you do a search there I think a poster claimed he tried after 10 years without luck but you got it 14 years later, that probably means sometime between 10 and 14 years is when you can qualify again.
Disclosure: I am a moderator/paid staff of this site, which does have advertising relationships with some credit cards that are discussed and linked to. Regardless, anything I say is my honest opinion.

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