amex wrote:I am a 21 year old full time college student. I have 3 credit cards, almost 4 years of credit history, never had any form of debt, and a credit score of 740. I got a Gold Card application invite in the mail a few weeks back, when I filled out the form last week I left annual income check-box blank as I don't have any income. My mom supports me financially.
I then got several emails and a call from an Amex representative asking about my annual income. The guy told me my application looks perfect, but the only thing missing is the income. After I told him I don't have any, he immediately denied my application.
I am really frustrated because I naively thought if they sent me an invitation, I would definitely get approved. I also know some people just like me (full time student with no income) who have the Amex gold/platinum cards. Does that mean they lied on their application or does it mean they have their parents cosign their cards?
I don't know much about credit cards. Would it help if I get my mom cosign for me? (She doesn't use Amex though.) How does cosigning work? Is there any way I can make them change their mind?
You can thank the current administration for that one. Its called CARD Act. All banks/credit unions/finance companies have to ask for your personal annual income. They then take the amount you provide and insert it into a formula that determines your ability to repay. Obviously, if you do not have personal income (from a job, structured settlement, disability, Social Security etc) then you technically would not have the ability to repay and therefore, the application should be declined.
You could certainly have your mom "co-sign" for the card. Basically she would have to be the primary cardholder (since she would have the income) and you would have to be the co applicant.
If you already have three cards, then what is the hurry? At 21 you should be graduating soon so I would just wait until you are independent and supporting yourself. At that point you can open your own card.
And as PlatinumAMEX94 said, you may have been pre-approved because your mailing address is in a wealthy neighborhood and people in that area generally have a college education and make a six figure salary. Pre-approval/Pre-Selected does not guarantee approval.
As far as lying on the application; sure, many people have done that and most banks will never know or even care; however, AMEX is a different beast and you never know when they might ask for financials (directly from the IRS) to prove your income. So best not to lie.