Ultimate Application Denied - Frustrating

[rhealy]

I recently applied for the American Express Ultimate card and just called to find out my application was denied. The most frustrating part as always is they won’t specifically tell me why – which means I can’t explain or ‘fix’ whatever they think is wrong with my record/profile

-Income = 6 figures
-Debt = $0
-1 Existing Personal Visa - $3k limit ($0 outstanding)
-1 Existing Amex Corporate charge card customer (always paid on time)
- ‘Clean’ credit report, no defaults or any negative strikes on record

The only possible reason I can think that it could have been denied is the fact that in previous years I have shopped around for the best deals on cards (not in last 2 yrs at least) – ie. I had moved from some cards to another
Has anyone got any advice on what I can do here?....the best advice the phone agent offered me was to write a letter of complaint..

 

[DrJ]

I would definitely be complaining, particularly if you have a pre-existing Amex account. My stats are the same as yours and got approved in 10 seconds when applying last week.

 

[tuppaware]

Sometimes it can be very random. Have you moved twice in the last year?
Any other applications recently.

I worked out that my David Jones Store card was listed as a Amex DJ's card on my credit file which I thought might be causing issues.

 

[Natt]

Blunt question - sorry

do you have an "asset" like a house?

maybe they think they need some security in case of default?

 

[rhealy]

Blunt question - sorry

do you have an "asset" like a house?

maybe they think they need some security in case of default?

Hey Natt, not yet (signed contract for off the plan but don't 'own' it yet).
However non of their criteria even check this fact anyway.

Update: just applied for the Earth Card and was rejected online instantly -- it would appear their system has some bad mark against my name , have ordered a D&B report to try and figure this out.....I feel like i'm a no fly/watch list now

 

[Natt]

Update: just applied for the Earth Card and was rejected online instantly -- it would appear their system has some bad mark against my name , have ordered a D&B report to try and figure this out.....I feel like i'm a no fly/watch list now

Gosh, ah now I remember why I had the house question in mind, as they ask the rent/repayments amount in the application

hopefully the report might help, its rather confusing to say the least

 

[Dave Noble]

Update: just applied for the Earth Card and was rejected online instantly -- it would appear their system has some bad mark against my name , have ordered a D&B report to try and figure this out.....I feel like i'm a no fly/watch list now

I would also check the Veda report since that will have been checked by American Express

Dave

 

[rhealy]

I would also check the Veda report since that will have been checked by American Express

Just got it back (and the D&B one since thats who Westpac/Earth use) and both only showing a few inquiries for my new phone/3G card etc - no negative marks.....

Any suggestions on how I find out why my record is being treated as negative?

 

[oz_mark]

Just got it back (and the D&B one since thats who Westpac/Earth use) and both only showing a few inquiries for my new phone/3G card etc - no negative marks.....

Any suggestions on how I find out why my record is being treated as negative?

Are the few inquiries all fairly recent?

 

[Atom]

Rhealy, the address you put down may have something to do with it too. Very short time at addresses or eg previous fraudulent activity at that address.

 

[one9]

Sometimes it can be very random. Have you moved twice in the last year?
Any other applications recently.

I worked out that my David Jones Store card was listed as a Amex DJ's card on my credit file which I thought might be causing issues.

Amex is particularly fussy about the time at your current address. Being over 3 or 5 years really helps.

Also Earth card is assessed by Westpac, where Amex card is assessed by Amex. These applications are processed by different companies, so if you are declined by both, I would suggest carefully looking at each question on the form and considering your answers carefully.

 

[ChrisFlyer]

When I applied for my Earth account, I entered my weekly pay amount, but accidentally selected the time period for the entry as "monthly" (and didn't realise until after I had submitted it)... the account was approved, but only had a rather low limit... I later called them to correct it, and they said that it would be updated on my profile, and 6 months later I received a limit increase offer which almost tripled the limit... you didn't make a silly mistake like me did you?

 

[Alanslegal]

The only thing I can think of is that the history of employment OR history of income has come into heavy consideration.

Assuming there are no other variables; I think the lenders will say someone who has regularly earnt $70,000 each year for the past five years is more credit worthy than someone who has just started earning $150,000.

 

[straitman]

rhealy,

Is it possible that you are not showing up as having enough credit history :?: ie only one low limit CC against your name.

Amex is particularly fussy about the time at your current address. Being over 3 or 5 years really helps.

one9,

I have not heard of that so a good one to store away. Having said that I applied for and received an Amex Platinum Charge Card last year after only living at the current address for 3 months. I did have a long history though with an Amex Corporate Card and an Amex Platinum Credit Card.

 

[greenfrog86]

It sounds like this is not an issue from your credit report, however could be a problem with your answers to some of the questions...

It is very strange that you would be declined for both institutions - presumably you have used the same answers on both applications?

One thing from credit reports that may be considered negatively is a 'rapid fire' approach to applications in a short period of time - ie this is considered as showing you are 'desperate' for credit. As you only did this a few years ago, this should not be taken into account in your application scoring this year...

There are a number of things that are taken into consideration when assessing applications - address is one of them, however this would not usually dictate whether you are approved or not. It may be used for determining your 'likely' risk (which in turn guides your credit limit and any offer of increases etc).

One thing to think about is your contact details - many application forms ask for telephone numbers (ie landlines). Ensure that you are using one that matches your location (ie if you do not have a landline it is tempting to use a relatives, and they may live in a differant area etc). This kind of information as someone pointed out, may be compared with applications from others to check for abnormalities.

Has anyone at your address applied for cards recently also? If they have been approved it would seem that your address means nothing in the application.

Was Westpac any more forthcoming with answers as to your rejection? Most organisations will tell you details of your rejection - but usually at a high level... ie they will say it was because you don't earn enough, or because you have too much credit already, or because you failed the organisation's scoring process (but they will not tell you which part of this).

It would be worth asking to speak to someone in Credit Assessment - most customer service operators can only see notes (ie app declined) and you need to talk to the assessment team who can access your app and your assessment.

It might also be worth asking them if they feel that another product may be more suitable (ie may be approved for you) given your situation.

Westpac decline seems pretty harsh when I have debt, don't earn 6 figures and was approved for platinum....

 

[wywk]

If your credit file has been busy in the last 3 months...let's say you have 3 or more enquiries, this will give you a lower matrix score when they assess you for credit. Also not having any asset such as a house and just 'savings' will also affect your score.

If you made several credit applications within the last few months and your details don't match, this will raise suspicions and they may not want to take the risk and give you credit. Always make sure your employer/hr/payroll is contactable and can confirm all your details.

Having a credit file with very few enquiries also affect your credit score. I know ppl who never applied for credit before and got denied because they don't have enough credit history.

 

[Dave Noble]

Having a credit file with very few enquiries also affect your credit score. I know ppl who never applied for credit before and got denied because they don't have enough credit history.

Australia does not have credit scoring or credit history recorded unlike places such as UK or US. In many cases the only thing recorded is details of applications made in last 5 years and any negative items such as defaults, judgements etc. Most who have not applied for credit in 5 years and who have no negative marks will have a file devoid of much other than name , addresses and last recorded employer

There are changes with some lenders now reporing details of having an account open but that is not general. In Australia, an empty file is pretty much a good file

 

[wywk]

Australia does not have credit scoring or credit history recorded unlike places such as UK or US. In many cases the only thing recorded is details of applications made in last 5 years and any negative items such as defaults, judgements etc. Most who have not applied for credit in 5 years and who have no negative marks will have a file devoid of much other than name , addresses and last recorded employer

There are changes with some lenders now reporing details of having an account open but that is not general. In Australia, an empty file is pretty much a good file

Sorry I probably should have been a bit clearer. You are correct, Australia does not have a credit scoring but each bank has their own scoring matrix system when assessing you for credit, whether it's for a credit card or another type of loan. I know this as I used to work for one of the big 4 in their credit application department. Also an empty credit file with no history does affect the overall assessment of your application as well, but then again it depends really who the lender is.

Hope this makes sense

 

[wxxnxs]

Well, AMEX is a funny company. I got declined when I tried to apply online but got a pre-approved AMEX card from my professional institution. And I believe that big 4 have their own scoring matrix system because I got approved by two of them with high limited and rejected by Westpac & ANZ.

 

[WA flyer]

Ive just received this card myself and was shocked to see I had only been given a $3000 credit limit.

I only got this for the 50k point promotion and was planning to kick it into touch once I had redeemed the points, as I prefer the flexibility of the Amex Plat (formerly Rewards Maximiser). However after a call to try to get the fee reduced, I have now had the $450 waived.

I'll have to reconsider my future use of it now.

They were very keen for me to transfer some of my credit limit across from my Amex Plat, must be more profit in this card?

Usually I spend about $20k a month on Amex so I am suprised about the low cred it limits, I think I have about $80k across the Westpac Krisflyer and Earth cards and about 70K on my Citi MC/Visa.

I didn't pay much attention when I filled-in the online application as you only needed about $60k salary per year so probably put down a random about as i'm in sales so my income is variable.