No payslip/tax statement requirement?

[afpaff]

Hi all,

I applied for the plat charge card and it was approved in 5 minutes.

But I didn’t have to send them any proof of income or payslips or assets/liabilities or mortgage details etc that credit card companies normally ask for.

Is this because it’s a charge card? Seems very easy to get approved, anyone could just lie about your income. How can this be possible?

 

[levelnine]

Nothing to do with being a charge card. Amex operate differently from the Australian banks. Typically they don't request any income verification, which follows the approach of their US arm. Indeed, no US bank typically asks for proof of income when applying for a credit card — all based off your credit score.

 

[afpaff]

Nothing to do with being a charge card. Amex operate differently from the Australian banks. Typically they don't request any income verification, which follows the approach of their US arm. Indeed, no US bank typically asks for proof of income when applying for a credit card — all based off your credit score.

So amex approved me just based on my credit score basically?

Someone on low income can have good credit score too though.

 

[levelnine]

So amex approved me just based on my credit score basically?

Someone on low income can have good credit score too though.

Yes.

If you're trying to understand why Amex does it, my guess would be that the profit made from acquiring new customers vastly outweighs the small cost of fraudulent applicants and the cost of running a documentation verification centre.

And Amex can always ask you for verification documents if your credit profile raises any red flags or financial conditions worsen (and the number of fraudulent applications rise).

 

[cbourl]

So for those of us who have a Credit Ban in place after Optus aka SingTel aka SingaporeInc debacle, what happens if we try and apply for a new card? Thinking the HSBC Star Alliance card to supplement my Amex Charge and credit cards

 

[levelnine]

So for those of us who have a Credit Ban in place after Optus aka SingTel aka SingaporeInc debacle, what happens if we try and apply for a new card?

I'm no expert on Amex's internal processes, but I assume Amex won't issue a card if your credit reports are frozen. Indeed, I wouldn't be surprised if they are prohibited from doing so by law because the card has to be reported to your credit file, which cannot happen if it is frozen.

 

[PointsDude]

Nothing to do with being a charge card. Amex operate differently from the Australian banks. Typically they don't request any income verification, which follows the approach of their US arm. Indeed, no US bank typically asks for proof of income when applying for a credit card — all based off your credit score.

I'm not sure this is entirely true, as credit card providers have a responsibility to make sure the product is 'suitable' for the consumer applying. Lenders have to make sure that you have the ability to service the revolving credit, whilst there is no such need for charge cards (and therefore, Amex can just go off account history, credit score etc).

Personally, I have been approved for the Platinum card without providing income statements and applied for the Explorer 6 months later and been asked for credit card statements.

 

[levelnine]

I'm not sure this is entirely true, as credit card providers have a responsibility to make sure the product is 'suitable' for the consumer applying. Lenders have to make sure that you have the ability to service the revolving credit, whilst there is no such need for charge cards (and therefore, Amex can just go off account history, credit score etc).

I have been approved for the Qantas Amex Ultimate, a credit card, multiple times over the years and never once verified my income.

 

[afpaff]

I'm not sure this is entirely true, as credit card providers have a responsibility to make sure the product is 'suitable' for the consumer applying. Lenders have to make sure that you have the ability to service the revolving credit, whilst there is no such need for charge cards (and therefore, Amex can just go off account history, credit score etc).

Personally, I have been approved for the Platinum card without providing income statements and applied for the Explorer 6 months later and been asked for credit card statements.

Why did you need the explorer when you have platinum?

 

[burmans]

So for those of us who have a Credit Ban in place after Optus aka SingTel aka SingaporeInc debacle, what happens if we try and apply for a new card? Thinking the HSBC Star Alliance card to supplement my Amex Charge and credit cards

Well it depends if they go to the bureau as part of their process. Amex don’t always (particularly if you already have an history with them) but most banks do. If they can’t get the info they need because you have a ban the process can’t continue, I.e no approval. But you do know you can temporarily remove the ban then get it reapplied?

 

[PointsDude]

Why did you need the explorer when you have platinum?

Whoops I meant Platinum Reserve

 

[jb747]

Someone on low income can have good credit score too though.

Someone with a low income, but who is sensible, could well deserve their good credit score, and Amex card.

 

[Tiki]

The US system of evaluating people on their Fico score and history of handling credit is much fairer. I have always been a low income person who manages credit flawlessly for over 35 years, never late, never defaulting. But I have been locked out of many good Aussie SUBs because of my income. They don't even consider that my expenses are comparitively low and my mortgage is years in advance because I pay more than the minimum. I am being unfairly punished because others in similar ages and income brackets don't manage credit well but I most certainly do.

 

[levelnine]

The US system of evaluating people on their Fico score and history of handling credit is much fairer.

The other amazing thing about the US system is that you can continue to get new credit cards in retirement. Good luck doing that in Australia.

 

[SOPOOR]

a friend applied a few years ago for explorer, wasnt asked for payslips etc
they applied a few months ago, and was asked, and subsequently declined

 

[lovestotravel]

Surprised they didn't ask for income verification, as you can have a great credit score with a low income.

Granted even though it's a charge card, for the first few months doubt you would be able to spend more than $10K

 

[afpaff]

Surprised they didn't ask for income verification, as you can have a great credit score with a low income.

Granted even though it's a charge card, for the first few months doubt you would be able to spend more than $10K

Maybe they saw my home loan and assumed I had enough income if i was have a home loan.

 

[lovestotravel]

Maybe they saw my home loan and assumed I had enough income if i was have a home loan.

I've just applied for a St George card and they wanted a current statement from the bank showing repayments, all for a $15K limit.....

 

[CaptJCool]

So for those of us who have a Credit Ban in place after Optus aka SingTel aka SingaporeInc debacle, what happens if we try and apply for a new card? Thinking the HSBC Star Alliance card to supplement my Amex Charge and credit cards

The info recommending placing a credit ban also mentioned from vague memory that You can temporarily lift (unblock) the Credit ban and re-impose it after the bank has gone looking

 

[burmans]

The info recommending placing a credit ban also mentioned from vague memory that You can temporarily lift (unblock) the Credit ban and re-impose it after the bank has gone looking

This is true, you can turn the ban both on and off!