Amex asking for tax returns

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grifenhagen
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Amex asking for tax returns

Postby grifenhagen » Tue Mar 11, 2014 9:49 pm

I recently applied for the Amex BCE last week and was instantly approved with a 1k limit.
I am 18 and a full time student as well as an employee/musician at a church. I have had this job for right around a year. I also do other small jobs consistently, specifically house cleaning for my fathers real estate company. I will clean houses once a week, making around 200~ a week. For this application, I put 18k annual income, which is what inotj jobs add up to be. This money that I am making from the church is a paycheck, and the money I make from my dads business may not necessarily be a pay check, sometimes it's in cash and sometimes it's a business check.
I decided to apply for the Amex Hilton hhonors yesterday. I was curious about if I was able to enter the money my parents give me as additional income. I called Amex customer service and they told me that I could. That brought my income up to 40k. My parents are very generous, due to me having a full scholarship/full time job.
The Hilton application went through as "in progress". I got an email today asking for tax records to verify my income. I have no idea what to do. I did not lie and boost up my income, I was telling the truth and entering in the income that I have access to use to pay my bills. This is money that I receive annually.
Since I have not had this job for but a year and my dad takes care of the tax record stuff, what should I do? I don't even know if I have tax records. Any advice? Should I call and explain this to them? I am very afraid that they are going to cancel my blue cash everyday card. All I am trying to do is build up my credit score to make life easier in the long run, and this is backfiring. Any advice would help.


grifenhagen
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Postby grifenhagen » Tue Mar 11, 2014 9:50 pm

BTW- I just turned 18 in November.

CC Deville
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Postby CC Deville » Tue Mar 11, 2014 10:02 pm

Did they ask you to sign a 4056 T? When you log into your BCE, does it indicate that the account is restricted? If your BCE is restricted you will have little choice but to comply with the request for the tax records. You could call them and explain the situation; however, usually the department that handles these types of things don't discuss the review with the cardholder. Depending on what they say you may want to withdraw the application for the new card; unfortunately, with Amex they generally suspend all accounts until you comply with the tax record request.

Don't be in such a hurry to open a lot of cards. You still have a lifetime of that ahead of you. Going forward, any bank that you apply with your income should match what you can claim on your taxes to avoid this in the future. The beauty of Amex is the backdating; so you really only need one at your age. When you graduate and become successful in your career, that is when you can apply for another and take advantage of the backdating.

grifenhagen
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Postby grifenhagen » Tue Mar 11, 2014 10:21 pm

CC Deville wrote:Did they ask you to sign a 4056 T? When you log into your BCE, does it indicate that the account is restricted? If your BCE is restricted you will have little choice but to comply with the request for the tax records. You could call them and explain the situation; however, usually the department that handles these types of things don't discuss the review with the cardholder. Depending on what they say you may want to withdraw the application for the new card; unfortunately, with Amex they generally suspend all accounts until you comply with the tax record request.



My BCE is not restricted as of now. How do I go about cancelling an application? Do you think it would be better to just cancel the application alltogether, or to try to call and explain this? Won't it look sketchy if I cancel an application as soon as they ask for proof of income? Sorry for all the questions, I just really don't want to screw up my future. And the funny thing is that right befofe I applied for the hhonors card, I talked my dad into applying for the PRG charge card. He is old fashioned, doesn't have but one chase credit card that hasn't been used in a year. He uses a debit card for everything, about 130-140k annually... when I told him about the points and rewards, he decided he'd try it.
Now I'm afraid I'm about to be kicked out of what I just referred my father into.

grifenhagen
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Postby grifenhagen » Tue Mar 11, 2014 10:26 pm

And yes they asked for me to sign the 4056 t. Based on the light research I've conducted, I don't neccessarily believe they should have the right to request that... I think that's sort of an invasion of privacy. Deny me or start me off with a low CL and then see if I am going to be a reliable customer (which I obviously am).
I have read some stories of people personally writing a letter to amex. I may do that tomorrow to explain all of this. If I do, I'll probably send 5 separate copies to make sure someone reads one.

jitdc
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Postby jitdc » Wed Mar 12, 2014 12:58 am

Amex is issuing you credit based on what you told them. They have every right to verify that what you reported is true. I believe asking for tax records is a bit extreme and invasive but they they are assessing their risk. We may not like it but we also have the freedom to seek credit from other companies. If you want to keep your cards with Amex then I would send in the requested info.

linuxmachine
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Postby linuxmachine » Wed Mar 12, 2014 1:12 am

grifenhagen wrote:And yes they asked for me to sign the 4056 t. Based on the light research I've conducted, I don't neccessarily believe they should have the right to request that... I think that's sort of an invasion of privacy. Deny me or start me off with a low CL and then see if I am going to be a reliable customer (which I obviously am).
I have read some stories of people personally writing a letter to amex. I may do that tomorrow to explain all of this. If I do, I'll probably send 5 separate copies to make sure someone reads one.


They certainly have the right to ask for documents to determine credit worthiness. It's the same if you were to ask me to borrow money every month, and have you pay me back either in full or in installments. It's my money, and it's within my right to ask you to prove to me in a way that I am most comfortable. It's the same in reverse too. It's your right to refuse to share this information, and if that is the case, we can both agree to not deal.

If you feel this is a TRUE invasion of your privacy, then state it with them and let them know you'd like to rescind your application. There are many valid reasons not to share your tax information. You could even offer to provide other information to prove you have access to the type of funding you require to pay off your monthly debt, and if they respond with a no, then so be it.

If credit score if your primary concern, then don't worry about losing the BCE. Start small with a Cap One, Discover IT or any of the secured cards and ease your way in. You might feel like you're leaving a lot of rewards on the table, and you probably are to some extent. But if building up credit is your primary concern, you could wait a couple years. Those rewards only add up to a few hundred dollars anyways (and only in the first year), and given your income, it's really not a huge deal. Maybe good enough for a small gift for yourself here and there, but nothing you can't afford to buy on your own if you really want it. So take it easy and good luck

takeshi
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Postby takeshi » Wed Mar 12, 2014 8:04 am

grifenhagen wrote:The Hilton application went through as "in progress". I got an email today asking for tax records to verify my income. I have no idea what to do. I did not lie and boost up my income, I was telling the truth and entering in the income that I have access to use to pay my bills. This is money that I receive annually.

You always need to consider what evidence you'll be able to submit for your income when applying. AmEx relies on the 4506-T to verify income so your income needs to be indicated on your tax documents.

grifenhagen wrote:Based on the light research I've conducted, I don't neccessarily believe they should have the right to request that... I think that's sort of an invasion of privacy.

Your call whether you provide the 4506-T but it's what AmEx uses for income verification and they definitely have a right to verify your income. If you don't comply then you won't make any headway no matter how many letters you write or send.

Again, be careful with what you put on your applications. If you don't think your income will qualify you then cancel the application.

daniel2304
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Postby daniel2304 » Wed Mar 12, 2014 9:50 am

My 2 cent thought:
I think you applied too soon with an inconsistent in your income. Credit card application always ask for household income, not individual income. Last week, you entered 18K, this week you entered 40k. As for me, I want you to verify it as well. And I think Amex has the right to ask for verification.
All my posts are my opinions. All my posts mentioned "you" are merely for discussion-purpose only. No advice is given in any post at any time. It is also impossible for me to put effort to verify every statement that anyone has given.

thom02099
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Postby thom02099 » Wed Mar 12, 2014 5:38 pm

daniel2304 wrote:My 2 cent thought:
I think you applied too soon with an inconsistent in your income. [color="red"]Credit card application always ask for household income, not individual income.[/color] Last week, you entered 18K, this week you entered 40k. As for me, I want you to verify it as well. And I think Amex has the right to ask for verification.


Not true. They CAN ask for household income, they don't ALWAYS ask for it. When I recently applied for my AMEX BCP, I called in and asked specifically about this, as my personal income is what I've always used on all applications. AMEX CSR said individual income, not household income, is what they were asking for my BCP approval; they would not accept household income. And some of the automated applications will specify individual income; others will allow household income.
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