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  1. #1
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    Default I was denied for pre-approved credit card invite

    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?
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  2. #2
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    Your invite was pre-screened due to your credit profile/report. The one thing that is never in a credit report is an annual income, which is required by American Express, unless you can prove you have sizable assets (trust, alimony, royalties, residuals, rentals, etc.). From my understanding there are no longer cosigners for credit cards, only authorized users. Cosigners are usually for car loans at banks or credit unions. Once you can show a paycheck stub or proof of income/employment then you will be approved.

    From a business standpoint, it would be very foolish to approve someone with a charge card or credit card with no viable means of repayment. American Express is a business relationship, not a friendship. You loan friends money on their word, you loan strangers money based on their collateral.
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  3. #3
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    Quote Originally Posted by amex View Post
    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.
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  4. agp
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    Why do you need a card that charges $125/year when you do not have an income?

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  5. #5
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    Quote Originally Posted by agp View Post
    Why do you need a card that charges $125/year when you do not have an income?
    I second that opinion....unless your mother is extremely wealthy meaning hands you out thousands a month there is no reason for you to have this card to begin with your return on having it would be zero unless of course you just want to flash the card around friends, etc. which I can understand but not agree with hahaha

    Not having an income means that Amex has to depend on your mother to pay your bills....can you see how this would be a worry for any lender?
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  6. #6
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    Honestly what got me into applying was that they offered me a $150 gift card for $1000 I spend in the first three month. I like shopping and dining out so I thought this card would be a good way to get some reward points.

    Also, I heard that amex cards are really good for oversea transactions, I travel oversea at least once a year and I would really like to use a card that's secure when I'm back in Asia or when I go somewhere on breaks. I haven't really used my 3 credit cards in the past two years (2 of them are store cards and 1 from BOA), the only card I've been using a lot is my BOA debit card, on which I have a small checking account and I get a moderate allowance from my mom each week.

    I kinda regret that I didn't just check the 0 to something check box for annual income on that application form. It wouldn't really be lying and I might have had a chance of getting approved. I didn't like the $125 annual fee, and it was why I didn't care for the card at first. But now that I've been rejected, it just made me want it more... If I become independent in the future, how much annual income do I need to make to get approved for the gold card or any amex card with my credit background?
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  7. #7
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    Why question if he needs the card or not? You don't know how much he gets per month from his parents.

    To the OP, I agree on what everyone else says, Ask your mom to apply and become an AU or maybe get added to hers if she already has an amex.
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  8. Green Member
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    Can someone tell me what would be a good income to justify a gold card with my credit history? Just curious...
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  9. #9
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    I've seen people get it with VERY low income...I've also heard of people having a platinum making $12/hour lol. I think they just want to make sure you aren't dependent on someone else for paying the account.

    Think the Gold has a foreign transaction fee anyway, so using it overseas might not be the best choice.

    I think income to justify the card isn't relevant. Your annual spending is, this is not a one size fits all answer but I would think you'd want to spend in the range of $15-20k+ to get something out of it in terms of points.
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  10. #10
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    Remember with the Card Act, they can only consider your income as opposed to parents, spouse, etc. That is why you got rejected. Careful about lying about income as they may ask for proof through F/R and you might find yourself on their blacklist.
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