Mom getting declined for Costco

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Vandalized2
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Mom getting declined for Costco

Postby Vandalized2 » Mon Oct 28, 2013 10:34 pm

So my mom applied for the Costco AMEX and was declined, as my posting title would suggest.

I feel bad for her because she does 99.9% of her shopping there and she wanted the cash back because I guess the gas portion of costco does not get you the cashback

She has a BK 4 years ago due to a divorce, and she has paid all her cards and loans on time since then.

So, I suggested that I add her as an AU on my BCE and have her reapply in sixth months. Will this get her in the door with AMEX? Or will they still look at that BK from 4 years ago. Because I would just add her name and I use it and PIF every month.
Any help would be appreciated.


whit
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Postby whit » Tue Oct 29, 2013 12:04 am

bk that was filled 4 years ago? any creditor will still look at your application heavily if you have it on record, I would see if theres any possible way to apply yourself, and have her as AU and let her use it..any cashback she collects she gets, and any charges on there, she will pay..but this is a leap of faith (so to speak) on your part

the problem with having her apply for it, (versus letting her be added on as AU) is b/c if its as AU, she's not liable, which is why she can be added.. its one thing to let her use it as AU, but another to let her have one and be responsible for it given the track record.

not, that there aren't special circumstances, such as the one your mom is involved with.

so you can certainly try, but i can almost guarantee esp with a lender like amex, that they'd auto decline. Once that happens I would dial in for a reconsideration.. see if you can get a rep who will take the time to analyze the whole situation and see if there is any wiggle room.

MemberSince99
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Postby MemberSince99 » Tue Oct 29, 2013 6:43 am

I agree with not going for Amex with a BK on the report. Everything I've read says first they do NOT like BK, and the odds of getting one of their cards with a BK on your credit is slim. As you've seen she's just wasting hard pulls with this. She can keep trying and hope to get lucky but I would not try it any more than once every 6 months and preferably once a year. When the BK falls off and if her credit is good then she can get in but trying to force the issue now isn't likely to be successful if you are just talking odds here. But you've already seen that. I say either just wait it out until the BK no longer reports, or try escalating it all the way to the executive office but if you do be prepared to explain why they should want to open an account for her so badly, and please keep in mind that out of the goodness of their hearts because she shops at Costco isn't going to sway them when you do it.

takeshi
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Postby takeshi » Tue Oct 29, 2013 7:54 am

Vandalized2 wrote:I feel bad for her because she does 99.9% of her shopping there and she wanted the cash back because I guess the gas portion of costco does not get you the cashback

If the main reason is shopping at Costco then there are other cards out there that are processed on the AmEx network but not issued by AX that may be more BK friendly. The TrueEarnings only offers 1% at Costco (though it does offer 3% on gas including Costco up to $4,000 per year).

I don't think being an AU will get her approved as long as the BK is on her record but it won't hurt her either. Was AX included in her BK?

Vandalized2
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Postby Vandalized2 » Tue Oct 29, 2013 12:24 pm

takeshi wrote:If the main reason is shopping at Costco then there are other cards out there that are processed on the AmEx network but not issued by AX that may be more BK friendly. The TrueEarnings only offers 1% at Costco (though it does offer 3% on gas including Costco up to $4,000 per year).

I don't think being an AU will get her approved as long as the BK is on her record but it won't hurt her either. Was AX included in her BK?


Amex was not included in her BK. She primarily wanted it for the Gas @3%. And right now she is paying for the Executive Membership which is $110, and the AF for the Costco Amex is $55 and she would get back even a bigger annual reward with the Gas.

Vandalized2
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Postby Vandalized2 » Tue Oct 29, 2013 12:26 pm

What do you guys honestly feel about the reconsideration line for approval? Is it even worth a shot or will she just get the cold should because of the BK?

MemberSince99
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Postby MemberSince99 » Tue Oct 29, 2013 12:39 pm

I've asked for reconsideration with Amex several times all the way to the EO. I have never been successful. Having said that, others have been so it's always YMMV.

If I had money on the line as far as a bet, my money would be on her getting the cold shoulder. There is not much to lose but time, but I wouldn't really expect success either.

whit
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Postby whit » Tue Oct 29, 2013 12:56 pm

wouldn't matter that amex wasn't directly burned by your mom with the BK

creditors share like banks share like employers wish they can share

once the BK falls off she may have better luck

but people who don't have a BK but may not have enough credit or late payments, little things like that, have already a hard enough time getting approved

its already more then halfway through the time to wait, in meantime if you'd like to apply for it and have your mom added as AU and turn over the cashback to her..

Vandalized2
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Postby Vandalized2 » Wed Oct 30, 2013 11:31 am

So no news if my mom has used the recon line yet, I won't be applying for the card myself just due in fact I do not need another card right now. I am a college student making 28k a year so I do not spend a ton on anything that is not necessary. I will keep you guys updated, and thanks again for the advise



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