Just got declined for an American Express card, need counsel...

American Express forum. Talk about AmEx credit cards like Blue, Gold, Platinum, Centurion, and more.
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Munie
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Just got declined for an American Express card, need counsel...

Postby Munie » Mon Nov 14, 2011 11:55 am

All I want is 3 Cards:
1.Amex Gold
2. Amex Blue Cash Everyday
3. A Visa or MasterCard for places that don't take Amex.

What I got is:
1. Amex Green (Opened in May 2011)
2, First Premier MasterCard w. $250 limit (opened for about two years)

According to Amex and Experian, I got declined for an Amex BLUE CASH EVERY DAY Card because: [color="red"]Your American Express Cardmember risk score is too high [/color]

Your application was processed using our American Express Cardmember Risk Score which evaluates existing cardmembers. The reasons you did not score well were:

[color="red"]Your FICO? score (See below)
Your debt with other creditors relative to the available credit as indicated by Experian.
Your credit report indicates that you have one or more seriously delinquent or collections accounts and/or derogatory public records on file.
A recent payment you made to American Express was returned unpaid by your financial institution. [/color]

They also say:

Information About Your FICO? Score
We obtained your FICO score from Experian and used it in making our credit decision. Your FICO score is a number that reflects the information in your credit report. Your FICO score can change, depending on how the information in your credit report changes. On November 05, 2011, your FICO score was 657. The FICO score ranges from 300 to 850. The following are the key factors that contributed to your FICO score:

Account(s) not paid as agreed.
Proportion of revolving balances to revolving credit limits is too high.
Proportion of loan balances to loan amount is too high.
Length of time accounts have been established.
Too many inquiries in the last 12 months

If any anyone can explain some of this to me, and offer up some advice on what to do, and what my next move should be, please do...


CC Deville
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Postby CC Deville » Tue Nov 15, 2011 5:26 pm

Your American Express Cardmember risk score is too high: [color="red"]AMEX uses their own internal scoring risk model in addition to the credit bureau and income information. Nobody really knows what the internal scoring looks at. But generally they are looking at how you handle your other revolving (credit card) accounts.
[/color]
Your FICO? score (See below) [color="red"]A 657 is not too bad actually. You need to consider moving on from First Premier at this point and look into a Visa or MasterCard from a better bank that will hopefully offer you a higher credit line. [/color]
Your debt with other creditors relative to the available credit as indicated by Experian: [color="red"]This is what is known as debt-to-credit ratio. It sounds like the only revolving credit card you have is First Premier with a $250 limit. The AMEX Green does not have a limit. So, let's say you have a balance of $50 on your First Premier when it reports to the bureaus; that is 20% of your avaialble credit. If you have a $125 balance one month, that is 50% of your available credit. You really should not be at more than 30% of your available credit line. An easy fix for this is to add another Visa or MasterCard that will give you a higher credit line and keep balances low. [/color]Your credit report indicates that you have one or more seriously delinquent or collections accounts and/or derogatory public records on file: [color="red"]It is safe to assume that since you have a First Premier card that you have had past credit problems. This just means that you have past (hopefully not present) charged off or past due accounts. This information will stay on record for up to 7 years. Public record could be a judgement, bankruptcy or tax lien.
A recent payment you made to American Express was returned unpaid by your financial institution: [color="red"]just like it says, you either made an online payment, a bill pay service payment or sent in a check that was returned unpaid by your bank. Mistakes happen, but you need to try to keep your nose clean with AMEX period, let alone when you are new and trying to establish a relationship with them.[/color]

You have a 657 bureau which isn't horrible but not great either. You stand a good chance at being approved for a Visa or MasterCard from a higher caliber bank than First Premier. Visit whogavemecredit.com and look around at different banks to see who was approved for credit cards with your score. I would also recommend looking into a credit union for a credit card. You will need about a $1000 limit and keep your balance under $300 at all times to help improve your debt-to-credit ratio.

Do not go on a mad application spree! Do your homework to determine which bank or credit union you want to apply at for the best chance of approval. Financeglobe.com also has a section for credit cards where people have posted what cards they have been approved for. I believe your best bet may be Capital One at this point; however, you will probably only be approved for $500 to start out with.

AMEX credit cards are actually pretty tough to get. You can't expect to go from a First Premier card to a Blue Cash Everyday, it just doesn't work that way. But not to worry; AMEX backdates new accounts to your original Member Since date. So in a year or two when some of your bad accounts fall off and you have improved your scores a little (as well as added a Visa or MasterCard with a higher limit) then you could try again for the BCE. Once approved for the BCE, the new account would be backdated to 2011.

I am guessing you are a good two years away from approval provided that you don't apply for too many accounts and rack up inquiries. Check out Capital One's website, they have a pre-approval function that will pull a soft pull to see what you may be qualified for. I am not sure that any of the prime banks (BofA, Citibank, Chase, Wells Fargo, US Bank, PNC etc) would take you on at this point.

Munie
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Postby Munie » Tue Nov 15, 2011 7:25 pm

So, I just Checked my Experian Credit Report and Here's what I see:

There are 4 potentially negative items in your report.

Potentially Negative Items or Items for Further Review

Public Records: Select the account name to review details

No Potentially negative credit items appear on your report.

Credit Items: Select the account name to review details
BANK OF AMERICA
Account Number: XXXXXXXXXXXX....
DateOpened: 11/2005
Status: Paid in settlement.

BANK OF AMERICA
Account Number: XXXXXXXXXXXX....
DateOpened: 07/2006
Status: Paid in settlement.

Capital One
Account Number: XXXXXXXXXXXX....
DateOpened: 09/2006
Status: Paid in settlement.

CHASE BANK USA
Account Number: XXXXXXXXXXXX....
DateOpened: 08/2006
Status: Paid in settlement.

Also:

Requests Viewed By Others

According to the Fair Credit Reporting Act, credit grantors with a permissible purpose may request your credit information. When a request for your credit history is made, a record of who made the request and the reason they requested your credit will display on your credit report for two years.

The following information is part of your credit history and is provided to others.

- American Express
Date: May 11, 2011
- Macys/DSNB
Date: January 26, 2011
- CONSERVE
Date: December 1, 2010
- Macys
Date: February 15, 2010
- Macys
Date: February 14, 2010
- BANK OF AMERICA
Date: December 18, 2009
Requests Viewed Only By You

According to the Fair Credit Reporting Act, credit grantors listed in this section had a permissible purpose to request your information. When a request for your information is made, it will display on your credit report for two years.

We report these requests only to you as a record of those who requested your information, and we do not include any of these requests on credit reports to others.

- American Express CO
Date: September 29, 2011
- CREDIT ONE BANK
Date: September 29, 2011 , August 17, 2011 ,
June 29, 2011 , May 17, 2011 ,
February 11, 2011 , December 17, 2010 ,
December 11, 2009
- American Express 2
Date: September 14, 2011
- HSBC NV CARD SERVICES
Date: August 19, 2011
- WEBBANK/DFS
Date: August 19, 2011
- Capital One AUTO FINANCE
Date: July 27, 2011 , June 22, 2011 ,
April 20, 2011 , March 25, 2011 ,
February 24, 2011
- CAP ONE
Date: June 25, 2011 , June 16, 2011 ,
June 9, 2011 , May 27, 2011 ,
May 18, 2011 , May 11, 2011 ,
March 26, 2011 , March 18, 2011 ,
March 9, 2011 , February 23, 2011 ,
February 16, 2011 , February 4, 2011 ,
December 22, 2009 , December 15, 2009 ,
December 3, 2009
- EXPERIAN
Date: May 11, 2011 , February 15, 2010 ,
January 17, 2009 , July 22, 2006 ,
July 12, 2006 , March 31, 2006 ,
March 30, 2006 , March 6, 2006 ,
February 16, 2006 , February 9, 2006
- AMEX
Date: May 4, 2011
- FIRST PREMIER BANK
Date: April 29, 2010
- FIRST PREMIER BANK
Date: February 13, 2010
- EXPERIAN
Date: December 7, 2005

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SkyKing
 
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Postby SkyKing » Thu Nov 17, 2011 1:07 pm

Honestly, you should be happy with your Green Card. You've applied way too soon for another AMEX product, after just getting the Green Card in May, give it time. I fought long and hard to get back with AMEX, after a divorce and a BK. And yes, I included them in the BK.

I since paid them off and am a proud member again with a Platinum Card. It takes time to build a relationship with AMEX, but once you do, you'll never receive the level of service you'll get from them from ANY other card issuer. THAT"S A FACT! I use my card for everything from bubble gum to over $20,000 for (1) item.

Also, stop applying for cards period. You have enough, just build on what you have and give it a year and re-apply. The inquiries will effect you as well, without accounts to match them. First Premier is not a good card, but Capitol One would be a better choice.

There's no difference in how the card looks from someone who has good credit or weak/poor and they will continue to raise your limit. First premier reeks poor or new credit. Don't close it, but give it a while and apply for Cap One. Patients Grasshopper......... CC Deville has given you good advise as well.
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DoingHomework
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Location: Arizona

Postby DoingHomework » Thu Nov 17, 2011 4:07 pm

SkyKing has it right.

STOP APPLYING FOR CREDIT!!! Do not apply for anything for at least 2 years. Don't ask for a new card, not even a store card. Don't change cell phone providers, satellite or cable, nothing. Don't even ask for a credit line increase.

The "paid in settlement" items are going to haunt you for about 7 years from when they were paid off. Until those clear off you are going to have a hard time getting another AMEX card and you will harm your credit by trying.

The only way you can improve your credit is to be a responsible adult for 7 years. Prove that you can use the credit you have, pay everything on time as agreed, and don't get yourself in any trouble. At that time your credit score will improve and you might be approved for the AMEX you want.



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