How to Avoid a Financial Review from American Express

[@NikTraxler]

This applies to all cards Amex provides, including charge cards. I have a Centurion card and usually have an average spend around 50K or so a month. But earlier this year I was averaging about 100K a month due to business expenses and was called about a financial review. They did say that out or normal spending is the easiest way to get flagged for review. That being said, it isn't as a terrible process as people might make it seem. You can even do a call with your bank with Amex on the line to give them a majority amount of information that Amex requires.

[@stevenmiller7747]

Nik Traxler you have a Centurion Card. You have excellent credit and you are, shall we say, "well off" AMEX is making a TON of money off of your purchases at 50K AVERAGE a month and you triggered a financial review because you spent 100K in a month? AMEX should have sent you a box of chocolates, a dozen roses, had the Chairman come over to your house and kiss your rear end and then thanked you for the opportunity. I've always loved AMEX's customer service but seriously in a case like yours I could see maybe a VERY polite phone call from someone real important just checking to see if maybe you had lost your card and nothing else other than the thank you. Makes me question their intelligence.

[@NikTraxler]

Steven Miller Haha! Honestly I was a bit surprised as I've never missed a payment with Amex. But they did explain its a routine thing if you go out of spending habit. What was even crazier was they put a ceiling on the card as a temporary safety measure.

[@adamsmith8689]

Three weeks? I would tell them don't bother, they can just close all my accounts because I can't be working with banks who will freeze my accounts for three weeks on a whim. Even if they want to do this to minimize risk it shouldn't take 3 weeks, maybe three days at the most and even then it's a big inconvenience.

[@stevenmiller7747]

Adam Smith totally agree, they've checked my credit report, they know where I work and how to contact my employer to verify job info, if the told me they were doing a financial review I'll tell them save their time and close my account. I use my card but keep my utilization at 0% ALWAYS. I've never missed a payment, never been close to maxing out my card. I very much like AMEX and their customer service but this becomes a slippery slope.

[@johnking1940]

I completely agree, I had one done a few years ago on my buisness cards and personal cards and if I didnt have a buisness to run that was in its second year I would have closed them all down instantly. I cant belive with all the technology we have now days that it can take three weeks to verify this information. I mean it's not hard to look at a tax return and see the income. Or even simply a copy of bank statements to see regular income. Once you see the statments it should take you seconds to verify and the whole process should at most be 3 days, and they shouldnt freeze them all or the whole limit atleast allow say either 10percent of your limit on credit and 10 percent of what you normally spend in a month to get you through the 3 days !!

[@zed4643]

This would be a good idea but then don’t forget how badly a closed account reflects on your credit history 😞

[@ColoringKaria]

Also know that you would be unable to use all the points you have in your accounts.

[@simplelifeforyou5086]

Gold and preferred card😢

[@random19911004]

I can understand that there may be a time where they want to review your information, but they shouldn't just freeze your account completely (especially if it is going to take 2-3weeks). They should just temporarily cap your future spending to a reasonable number that is not likely to impact your normal spending. That way, you can still use the cards for rewards points etc. To have an account frozen for a few weeks, just for the crime of checking the spending power button (hint: people will use it if it is available) , making a large purchase or reaching $35k in limits, is very inconvenient. I wonder if AMEX knows how many people that they have pissed off and lost as customers due to this policy.

[@Josealduey1]

Should we cancel the cards or let amex close it? When they start a review

[@SlickReviews]

I have two biz and one personal with amex. I called in the other day to lower limits as is my routine now that I'm collecting cards. The Rep basically told me he could, and would, but business cards don't really count and "are looked at differently" 🤔

[@darkenedlight4818]

As long as I was approved for limits using an honest income figure, I assume a financial review would not be a problem and would result in no changes. I kind of want to proactively get it over with to avoid these kinds of "we are locking down your account" scenarios at some indeterminate point in the future when Amex decides to verify. It would be embarrassing to whip out a prestigious Amex and have it be declined.

[@TheCreditShifu]

3:10 "Buying a tractor for $20k" Random, do you have farming experience Sebby? ;-)

[@AskSebby]

lol

[@Archangel552]

That check spending feature was a trap!

[@AskSebby]

IT'S A TRAP!

[@lexxzus]

Kalvin Kao And so is the minimum spending limit offer

[@erickwhite9010]

@@AskSebby how soon after did they suspend your account after you clicked that button ? Was it immediately? I just got the platinum card in the mail and had no idea how to see my limit so I checked 3-4 times

[@Jprice141788]

I just got my first card and I saw it and I was curious. I kept looking at it and I was like why do I feel like this a trap lol. I'm glad I didn't!

[@aramisalvarado2490]

Not true, I don’t put crazy amounts. Less then 6,000 and I’m fine.

[@saibushayer]

A lot of my cards are from Chase. Does Chase do these kind of financial reviews? If so, what's their trigger/threshold? It would be very helpful to know. Thanks!

[@icewater309able]

If you have a charge card how do they factor that into your total credit available?

[@KennTollens]

American Express is the worst. They sued me right off almost when I didn't pay.

[@eflo8264]

Thanks for the information. I just got the platinum on Monday on the 60k sign up bonus, and on Wednesday I see a targeted offer for the 100k (the same day I got my card in the mail). Needless to say I was pissed that Amex did that (and their once in a lifetime bonus rule). After talking to 3 different agents, and expressing my discontent with them, I started to think they may freeze my accounts with them, and make me do a financial review, out of spite. I guess I'll just play it cool and follow your tips.

[@leebaltazar697]

My bf's biz got a financial review and they remove his unlimited preset spending limit. When can he regain this privilege?

[@sladesurfer]

household income for a credit card application possible?

[@tajsingh9769]

Haha I was so careless when I turned 18 and got the Gold. I used to do that. Would overcharge and funds wouldn't be there to pay it off. Got limit decrease on the card to like $3500. Used to and still do tap that check spending power a lot, never been a problem. But my account got back in check, paid bills on time, a month ago got offer for platinum upgrade. Just applied for it instead of upgrading because I wanted my gold too. 5 minutes later applied for the business platinum too, approved. Now a month later applied for the Marriott and 5 minutes later the cobalt and got approved. Love Amex, want green card in the future too

[@ricky57365]

Quick question I recently got my American Express card like two days ago but now I’m planning to pay off my wife car of $5k. Should I call American Express about this transaction ? Or should I be ok?

[@millerwilliams8723]

I would never send anything I would close all my acounts, nobodys bizz

[@AskSebby]

I wouldn't be surprised if this becomes common place (among most issuers) during the next market downturn (whether it's 1 year or 10 years away). A lot of startups right now are focused on analyzing your bank account transactions / cash flow to analyze credit risk -- banks are usually a few beats behind.

[@simplelifeforyou5086]

I'm going through this as of today my card 2 American Express cards just became prepaid card until this process is over. Both cards annual fees together 599 and 250 and a credit limit of 2800 between the two 😮of them I only had 30k between the 2 of them and I never used them except for this Christmas 🎄 and it totalled 1,200. Never been late or even close to this in 10 years. I just don't understand a gold card and preferred card. Never been late on anything. I don't play with my credit

[@bizcredbuilders3070]

I have a personal card with a 25k limit and a business card with a 9k limit, I was thinking of applying for another business card but I don't wan to get stuck with a financial review. Does the collective 35k credit limit rule apply on the business side as well?

[@wazindo]

I just got a Platinum card, I was planning on using it to pay my fall tuition, which would get me close to minimum. Is this a bad idea?

[@Wkwok11]

Wazi Mwotaji depends on the fee you are paying and if you are trying to meet sign up bonus

[@felixchalu3923]

Just got the everyday with a 2k limit. I wanted to pay for our family car insurance around $1,900 and my student tuition for around $1,200. I plan on paying off the balance right away since I have the cash. Would this be a bad idea? I wanted to hit my min. spend. Would it be better if I called them first? Card is in the mail on the way to me and I have to pay the insurance and tuition in the next week to 2 weeks.

[@olddog2706]

similar question

[@AskSebby]

Given your limit, you might want to call them about the $1,900. Pushing through so much (at a $2,000 limit) might raise huge flags. I think the $1,200 is fine though. Maybe do that one first and pay it off before the $1,900 (proving that you are able to pay off the balance and also training their risk algorithm to know that you will be spending >$1,200 per month)?

[@olddog2706]

Felix Chalu whenever I sign up for new card, the transfer balance page has those tiny word said it's Best to use somewhere below 75% of your limit,

[@MrPreferredcompany]

Hey Sebby, Do charge cards count towards the 35k ceiling that will trigger an amex financial review? So lets say I have 30k worth of credit cards with amex, and then get a 10k amex platinum charge card, will this trigger a financial review?

[@bacman84]

When applying for a credit card would you recommend combining you & your spouse's annual income when asked on the application? Thanks Seb!

[@wazindo]

Brian C. I typically do, you can do this right?

[@stevenmiller7747]

Brian C. I live in Wisconsin and on every credit application I've ever filled out it specifically says if you live in Wisconsin you can combine your spouses income. I'm not saying you can't do it in any other state but I've never seen an application that tells you that you can do it like you are allowed to in Wisconsin. I have no idea why Wisconsin is the only state specifically mentioned on credit card applications for adding spouses incomes. We are a marital property state but I assume other states are too. If anybody knows what makes Wisconsin so special on credit apps I'd love to hear it.

[@bacman84]

Steven Miller That's good info. I just noticed that on my Chase account where it asks about annual income, it states that you can combine with spouse's income.

[@jimgood1949]

In addition to the card company’s stated limits for credit, is there a practical limit? For example if you were getting ready to buy a new car, and you have enough money available to pay cash for it, could you buy the car using a credit card to accumulate points, and then immediately pay off the card balance?

[@AskSebby]

Yes, just depends on income to see if those types of limits are possible.

[@brettduffy1992]

they say you can use TOTAL income if self-employed your gross is a lot different than your taxable how does it work for them you can have losses on paper but still be making money so you can gross 60k and have 50k in deductions total annual income is before expenses is gross so AGI does not tell whole story bank statements can be more accurate and if uber diver your millage is not a real expense especially if you drive a hybrid car

[@taniyasmith9439]

Ask Sebby quick question should you stay under 25k with AMEX, because yesterday they wanted to increase my to 24k but I called in and lowered it was that a great move to avoid FR

[@thesoundofthesuburbs]

What happens if I make 10 payments of $10 or $25 from the same account?

[@KaiatheSiberianHusky]

Does Visa, Mastercard, or Discover do this?

[@jonsneakerhead3465]

How long this review normally can be? I have been waiting for a week so far no update yet.

[@CT-um7zq]

Hi. Can someone answer. My card got stolen and used, and thank goodness it was caught by fraud detention, but now we are in a financial review. Is this normal?

[@stevenmiller7747]

Could you do a review on the new Cathay Pacific Visa Signature card? It's bonus just went from 25K miles to 50K miles. Sounds interesting.

[@AskSebby]

On the list of potential videos :)

[@dyx1179]

If I don't want to have a review would it help if I pay my balance every few days ? (trying to complete the welcome offer in 2 weeks)

[@AskSebby]

That should be fine. Basically the same idea as this but to de-risk FR: www.asksebby.com/blog/how-to-increase-your-credit-score-by-pre-paying-your-credit-cards

[@chelo8564]

So, everyone is subject to a credit limit of 35k or less amongst all Amex Credit cards? Can anyone please correct me if I miss understood, thanks 🙏

[@kennyyan88]

I m going in FR process..because my son only use the card all the times ..have anyone after FR got cancel the Amex account?

[@AskSebby]

That usually happens if you have zero income (they can't pull up any tax stuff) or it's a business card and you don't have a business.

[@kennyyan88]

Ask Sebby well I have a job and file tax return in 2016 ...but kinda worried about in come number when I applied..not match

[@AskSebby]

They'll probably just lower your limits or set hard caps for your charge cards. I wouldn't be too worried about it if it's a reasonable difference.

[@jtgaerialproductions5619]

Hey did you end up passing the FR? Im going through the same thing now..

[@kevinjloder]

Do you have or know of a video review about Amex financial relief program?

[@Nivekkom]

what should I do if I want to apply for amex Hilton aspire card, but my current credit limit for 2 cards is 12000 total. 10k on 1 and 2k on the other, but the 2k was not opened with my name, I was set as another user. I don't want a FR, but I am interested in the aspire card. Thanks

[@AskSebby]

Lower your credit limit.

[@loent5952]

I had this happen to me. If they cancel my cards can I apply for chase cards since I was on the 5/24 rule ??

[@SGTMajorLarry]

Would it be too much of a risk for financial review if I applied for Hilton Honor AMX after applying for Platinum 3 months ago and the Honor card will be my 4th inquiry and card in 24 months and having a 7 year old AMX Blue with 50% utilization? Trying to decide if if I should get Hilton Honor to incorporate into my Asia trip next year. Thanks

[@stanlee3619]

Did you say, "Let's say you're buying a tractor...?"

[@TheBcbrybry]

Thought I heard that too. "Micro-financing" came up in my head immediately after that. lolx

[@stanlee3619]

TheBphilchin He lives in San Francisco, how does that even come up?

[@TheBcbrybry]

Hahaha... Maybe he has a huge plot of land in Woodacre? Anything's possible.

[@AskSebby]

I couldn't think of another high cost item (that generates income) on the spot!

[@Daytonaman675]

Ask Sebby I handled my Plat. spend for reward by moving some large purchases from cash to Amex. I spent 5k over 3 days. But on day 2 I payed off 3k in charges. This early payoff allowed the Amex spend gods to see I wasn't spending more than anticipated before payoff. If I had made those purchases and waited for my bill I'd have been under review faster than you can say "oops". Also I highly recommend the Amex app.

[@blixx87]

Im under review right now but my cards arent frozen. My spending has gone up but i been paying it off as well.

[@TheTubeMeister]

Hey +ask sebby does amex do a financial review for everyone sooner or later or do they do it if they have a reason to do it?

[@JohnBehring]

Nice Yetti Mic! I have a similar setup with that wind screen in the front. : )

[@Edgar.travels92]

They did that to my charge card and out a 2k limit on it how do you get the limit lifted ?

[@AskSebby]

Wait a year (AFAIK). Interestingly enough, future cards (even in 2-3 months) don't have this cap.

[@JeremyJamesDec15]

I am thinking about getting a business card from American Express. I know after you go above the $35,000ish or $25,000 on a single card credit limit with American Express you are subject to a credit audit. If I open up a business card which would put me away above the $35,000 on my personal cards will I be subject to that audit?

[@AskSebby]

The $35,000 is total CL with Amex. If you need a high limit, a charge card (Amex BGR?) probably makes the most sense. If you want to add a bit more context in private: www.asksebby.com/free-card-consultation/

[@JeremyJamesDec15]

Ask Sebby well I was thinking about getting the business SPG card only so I could get the sign up bonus. I am at the 35,000 limit on my personal American Express cards. I was not sure if opening a business account count towards your personal $35,000 limit and would send me into a financial review.

[@HOW365]

Regarding the financial review, in terms of income, is it gross income or net? Obviously these two numbers can be radically different. But if you grossing a lot - but not netting a lot: what would be the impact?

[@AskSebby]

As long as you submit something, the likely outcome is caps/reduced credit limits. I've known people who entered $150k+ (current job after PhD) but their tax return showed $20k (final year of PhD). If you submit nothing, you'll almost always get blacklisted and have all accounts shut down.

[@jtgaerialproductions5619]

Did they pass the financial review? Im in the same situation. @@AskSebby

[@sharonrose340]

Do you get the review if the combination of business and personal is $35K or over? That seems low.

[@sanhtytraymany2651]

And also if they were to cancel my card would that show up on my credit report as being negative...or should I cancel first...im confused

[@AskSebby]

Just submit the info. It's worse if they close it, but you're looking at getting blacklisted by 1 of the 3 big major issuers (especially for free travel / points).

[@sanhtytraymany2651]

KrazyTrader168 I am also interested on how long the blacklist last also..

[@andrewvasquez8066]

Can you add student loans, scholarships, and/or grants to your annual income when applying for a credit card?

[@Boy.Wonder]

Drew Vas why not? The IRs sees it as taxable income. So id say yes

[@mistermister8998]

@@Boy.Wonder loans are never taxable

[@MrStrutus]

The OG Sebs

[@PhilipeCardosoadv]

I did the same with the power Button rsrs hope i will not have a problem

[@IvyANguyen]

Why does only Amex seem to do this vs other banks which don't have this?

[@AskSebby]

Other issuers are more strict with issuing credit cards (i.e., Chase likes to see history and experience with cards before approving you for their top tier cards). On the flip side, I know students with $10,000 stated income who have gotten the Amex Platinum with a 650 score.

[@ABABABABABABABABABABABABAB]

Has any thing charged now

[@ImmunityMuzik]

Hey Sebastian! When you applied for an amex card, did you use the pre-qualify tool they offer? I've used it, and it says it couldn't find me any offers, yet, when I go on credit karma, my odds are good. I know to take credit karma odds, with a grain of salt, I'm just wondering how you went and applied for your amex card, when you first got started. Any help would be appreciated. Thanks.

[@AskSebby]

No. I have multiple Amex cards but it's always shown no offers. As long as your score is in a good place (>700) and you don't break any Amex application rules (2/90 rule), you're fine.

[@stevenmiller7747]

Thewayiseeit 240 2/90 rule means you can only get 2 AMEX cards in a 90 day period although there have been many people who claim they've received 3 or even 4 cards in a 90 day period. And we are talking just credit cards not charge cards.

[@mathewmclean9128]

Damn I got lucky lol! I played around with the "check spending power" tool on the app. After a few times, it just said "to prevent fraud, this feature is temporarily unavailable." Damn I got lucky that it didn't trigger a financial review.

[@FrannyBunny]

Does a financial review from Amex affect your credit score? Or have any long term consequences?

[@hkevinmiami]

I had financial review. I inadvertently paid my bill through a my business account but I closed the bus acct. the payment got returned then I received a FR. I now have specific limit on my Platinum. I called and was told it will stay On for about 6 months😩

[@HP97user]

The button will let you spend outside of your spending limit if you have a non charge card so it can be handy if used normally

[@kayjoe7237]

Excellent video.

[@knoxkill]

nice vid, i just got approved for a preferred cash back everyday card, hopefully i can get a charge card soon

[@davisarmstrong9939]

Is the FR mandatory once you reach 35k or does it just increase the odds of having one?

[@AskSebby]

Increases odds. I've heard of data points of people with 40k-50k who haven't had FR so the "35k rule" might be outdated.

[@random19911004]

It makes no sense why they would frezze your accounts for 3 weeks for wanting to do more business with them. Surely, they would just keep your account at your previous limit for a few weeks while they do the review, and then increase the limit later. But to block your account for three weeks and have to wait gives a very bad experience.

[@donaldsoles4259]

I have four Amex credit cards and limits totaling $34,600. I'd like to apply for the Aspire, so it seems like I should lower the 10k limits on my Marriott Biz and BBP down to $5,000 before I apply. Is that the right way of thinking about this?

[@XxFolksxX]

Hi sebby! My total credit line for amex blue cash is 30k. If I apply for the Wells Fargo propel card.. Amex. Would it trigger a financial review?

[@romanrodriguez4308]

If i lower my income from 34,000 to 22, 000 would that trigger a review?

[@rglivingthelife5715]

Did it trigger let me know please.

[@circletech7745]

A financial review will also be triggered if they see paypal transactions on your credit card statement with your name on them. I learned this the hard way. I just submitted my documets. Crossing my fingers my accounts won't be closed.

[@AskSebby]

Yep, it's a huge fraud / bust-out risk (send money to yourself and run away): kzbin.info/www/bejne/o3eQeXePiKeah5I

[@etacarinae5558]

WHAT?.....I just got a blue cash card with them the past month and half my spending was used with PayPal....whats with Paypal that makes them uneasy.?

[@georgesbush9361]

@@etacarinae5558 I believe it’s implied that your making PayPal transactions to yourself as a way to get cash off the card

[@ABABABABABABABABABABABABAB]

What if you only owe $100 or $1,000 and you accidentally type in an extra zero so you're paying more than what you owe What will happen if you pay more than what you owe

[@sanhtytraymany2651]

I have the same situation as your friend did..i made alot less last year ...my income triple this year...so that was what I was really worry about....im less confuse now...hahahaha

[@apothicary]

35k across all credit accounts? Or just Amex?

[@taniyasmith9439]

apothicary 1985 I think it has to be with Amex

[@albertcastro409]

That Sucks. Not cool what they do.

[@KarlMicallefgtfo]

Is a financial review a one time thing though?

[@AskSebby]

No. They can review you as often as they want (again, you won't have to deal with this unless you trigger it via the items mentioned in the video). Unless anything weird happens - you trigger a different factor - they're highly unlikely to do another FR within 12 months though.

[@KarlMicallefgtfo]

Thanks for replying. What I find odd is that they claim their charge cards have no pre spending limits but then they come with these financial review catches

[@JongoSkammunist]

Thanks for the vid! Couple questions: -Would you say these factors apply exactly the same with business cards? -Do you think MS-type transactions at reasonable volumes would trigger? Or have you seen that it is based on volume alone?

[@stevenmiller7747]

Jon I'm not sure MS spending will trigger a financial review from AMEX but they won't hesitate to close all of your cards if you do it and they don't ask you nicely to stop, they just close all your accounts. Don't mess with MS with AMEX, particularly gift cards.

[@xjosec1231]

I’m going to the process right now trying to spend 7000 for my Disney cruise trip

[@AskSebby]

Too much spend, too quickly?

[@gcklo]

35 credit limit per card is not high.