Platinum Edge Rejection Letter & $10k EDR CC All In One Day

[robd]

Reading the posts from this forum, I decided to review my CC's. Applied for, and received the 28 degree card about 6 weeks ago (handy for online shopping and upcoming US trip) but thought I'd try and maximise the QFF & Velocity points, given the reduced value of my current Westpac Gold Visa & Amex cards, which I planned on cancelling after receiving new cards. Following the advise here, I applied for the EDR card (for QFF) and a couple of days later, the Amex Platinum Edge (Velocity). Yesterday in the mail, I received a rejection letter from Amex and also a new EDR card with a $10k limit as requested. I thought that was quite ironical....

I've never been rejected for credit before. I phoned Amex knowing that they wouldn't give me specifics on why, but I was told that there are no "defaults" or anything on my credit report, it was just that my information did not meet their internal point score system for acceptance (I comfortably meet their minimum income criteria and I only have 3 CC's in total). So, my next question to Amex was "what about the Velocity Platinum card?". The advise given was that every card has different minimum requirements and that I may well meet those requirements (no guarantees of course), but any application within the next three months will likely automatically be rejected.

I wondering if anyone has a clue as to why the above occurred? Does applying for 2 or 3 credit cards within a short period of time, red flag my credit file as a bad risk or something? Does the 3 month rule only apply to Amex or should I not apply to any credit card supplier?

 

[Ewing]

You can almost guarantee that it's a result of the multiple applications.

Sent from my LT26i using AustFreqFly

 

[lovestotravel]

I wondering if anyone has a clue as to why the above occurred? Does applying for 2 or 3 credit cards within a short period of time, red flag my credit file as a bad risk or something? Does the 3 month rule only apply to Amex or should I not apply to any credit card supplier?

This basically!

Amex would have seen that you have applied and been approved for 2 x credit cards and then the 3rd (Amex) in a short period of time

It does appear "risky" when you apply for lots of credit in a short period of time

 

[robd]

Thanks.

That's just one more thing learned from AFF forum!

 

[Moopere]

Hi Robd,

You've just done what I did a year and a half ago. Within a week I applied for the EDR and the Amex Plat Edge. Quick as a flash, rejected by Amex and got accepted by EDR 2-3 days later with an enormous limit (back when they didn't ask what you wanted).

Thought the same as you, must be just the card. Applied for a different Amex, rejected, applied for a Citi Plat, got a gold instead and _I_ rejected that, reapplied for amex, rejected again.

Started to feel a bit narky about this as I'm within their target range and have not had problems with credit before ... but for sure it was the EDR card. I waited 6 months and applied for the Plat Edge again and got accepted easily, then got a Corporate Charge and now also accepted for the Amex Velocity Plat .... so, it wasn't me, not really, I just applied for too many cards and Amex is really sensitive to this.

My advice would be to go for your Amex again in 6 months but ensure you have a clear history of 3 months or so without any other applications to anyone.

 

[robd]

Hi Robd,

Started to feel a bit narky about this as I'm within their target range and have not had problems with credit before ... but for sure it was the EDR card. I waited 6 months and applied for the Plat Edge again and got accepted easily, then got a Corporate Charge and now also accepted for the Amex Velocity Plat .... so, it wasn't me, not really, I just applied for too many cards and Amex is really sensitive to this.

My advice would be to go for your Amex again in 6 months but ensure you have a clear history of 3 months or so without any other applications to anyone.

Wonder what the outcome would have been if I had applied to Amex first? I noted also that EDR application was a lot more in depth regarding finances, equity etc.

It's got me thinking about all the "pre-approved" letters received in the past that I have just chucked in the bin. Pretty sure the last one was $25k. Whatever...

 

[Ewing]

I noted also that EDR application was a lot more in depth regarding finances, equity etc.

When my American Express card was approved they sent me a fax with more details for me to fill out. I still have a copy (all my faxes are electronic):
American Express - Financial Details

I believe that was an ACT only requirement at the time. I'm not sure if they do anything like that for people located in other states/territories.

 

[robd]

When my American Express card was approved they sent me a fax with more details for me to fill out. I still have a copy (all my faxes are electronic):
American Express - Financial Details

I believe that was an ACT only requirement at the time. I'm not sure if they do anything like that for people located in other states/territories.

ACT = Politicians. Need I say more?

 

[knasty]

My experience was the opposite. No probs with Amex, couldn't get a Qantas Everyday money despite having had a standard Everyday Money for years without ever missing a payment...Some institutions love you, some hate you....

 

[Moopere]

Wonder what the outcome would have been if I had applied to Amex first?

The same thought crossed my mind too. Given events 6 months later, I reckon I would have been accepted. The right plan would have been to do Amex first, wait a month, then go EDR as I'm sure HSBC would approve me regardless but perhaps with a smaller limit than I originally got (which I reduced to something sensible by the way).

So I wasted 6 months carefully doing nothing when I could have been reaping more cards because I made this error in ordering applications.

 

[Ricardo]

My experience was the opposite. No probs with Amex, couldn't get a Qantas Everyday money despite having had a standard Everyday Money for years without ever missing a payment...Some institutions love you, some hate you....

Yes agree, I dont meet many of the income requirements for Amex (under 100k), but I've been a card member with a good record for about 12 years so nothing has been a problem in terms of card upgrades, limit increases etc, even got a Cent invite late last year :mrgreen:, maybe next year I might take it up with all those extra family tax bonus payments Julia and Swanny are handing out ..... oh and where is Kev these days ???

 

[robd]

The right plan would have been to do Amex first, wait a month, then go EDR as I'm sure HSBC would approve me regardless but perhaps with a smaller limit than I originally got (which I reduced to something sensible by the way).

So I wasted 6 months carefully doing nothing when I could have been reaping more cards because I made this error in ordering applications.

Hopefully others will benefit from this post.

 

[aplmac]

As someone else posted on another thread, it's certainly worth while getting your credit report from Veda ( Credit Risk, Credit Information, Customer Acquisition | Veda ). They do a $50-something a year email notification subscription (which includes your full credit history report) which notifies you when someone accesses your credit history details. Interestingly, AMEX does a credit review each and every month, like clockwork.

 

[robd]

As someone else posted on another thread, it's certainly worth while getting your credit report from Veda ( Credit Risk, Credit Information, Customer Acquisition | Veda ). They do a $50-something a year email notification subscription (which includes your full credit history report) which notifies you when someone accesses your credit history details. Interestingly, AMEX does a credit review each and every month, like clockwork.

I've actually just applied to get my credit file from Veda. The Amex rejection letter explains that because I was rejected, I can apply for free, (although I suspect you may be able to get it for free anyway?). It takes up to 10 days to receive it or you can pay $40-something to get it within one day, or as you stated, $50-something for the file and notifications for a year. I will be interested to see what's on it.

 

[nonpop]

I've actually just applied to get my credit file from Veda. The Amex rejection letter explains that because I was rejected, I can apply for free, (although I suspect you may be able to get it for free anyway?). It takes up to 10 days to receive it or you can pay $40-something to get it within one day, or as you stated, $50-something for the file and notifications for a year. I will be interested to see what's on it.

Yes free if you are ok to wait. This is how we access our file.
It is a very boring read in general. And yes Amex access it each and every month.

 

[robd]

Just received my credit file. Surprised at how little information is on it. There are only 6 consumer credit enquiries on it. A mobile phone application from Crazy Johns in 2008 (robd jnr #1), mobile phone from Optus 2008 (robd jnr #2), 28 degree MC Feb 2012, Telstra Home Bundle (switched from Optus) Feb 2012, HSBC EDR CC April 2012 and Amex 1st May 2012 - rejected.

File access is used by Westpac every 3 months and I guess this is for the CC's that I've had for years.

No defaults, outstandings, bankruptcy, writs or judgements etc.

Huh.

 

[Moopere]

No defaults, outstandings, bankruptcy, writs or judgements etc.

Huh.

Yep. Same story for me. I'm convinced it was the EDR card in my case. Amex is just really sensitive I think. If my experience is anything to go by you'll get no-where with Amex now for 4-6 months, I beat my head against the wall applying for a series of different Amex's after my initial rejection but got nowhere. Today, I guess close to 12 months later I've got 3 and they appear to have got over their initial hesitation.

 

[NM]

... 28 degree MC Feb 2012, ... , HSBC EDR CC April 2012 and Amex 1st May 2012 - rejected.

That's 3 credit cards in 4 months. I suggest that is the red flag. Multiple credit card applications in a short time period is often associated with someone in financial crisis.

 

[lovestotravel]

That's 3 credit cards in 4 months. I suggest that is the red flag. Multiple credit card applications in a short time period is often associated with someone in financial crisis.

Correctl!


However, Amex are a prick to deal with even for a medium business, see http://www.australianfrequentflyer....s/amex-being-walloped-courier-mail-15545.html

Also they have screwed me around with demanding payments well before the $$ is due.......

 

[kpc]

That's 3 credit cards in 4 months. I suggest that is the red flag. Multiple credit card applications in a short time period is often associated with someone in financial crisis.

...but for AFFers, it means (large) sign up bonuses