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cashnocredit

Will AMEX report a blance earlier if requested?

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This is an unusual situation I haven't heard of before.

 

I got a call from my Plat AU (business partner) who is in the process of refi'ing her house with interest rates now below 4%. They are giving her grief about the Amex balance, just under 1k, which of course is fully due and which apparently is getting added to her debt/income calcs.

 

So she's asking me to cancel the card or get it to report 0 balance which it, rarely and luckily, happened to be when she first bought the house. Seems to me to be gross incompetence on the part of the underwriters but everything is so automated these days.....

 

Unfortunately, AMEX just reported the balance a few days ago so she can't wait another month.

 

If I cancel the card will AMEX report it immediately? I just paid off the balance. Will AMEX report the 0 balance upon request? I got the direct number from the rep for the credit department which can answer that question but they had just closed. Hoping someone will know. The rep can, of course, cancel the card immediately but doesn't know if the credit department can have the account report early and doesn't know if the cancelation would report immediately either.

 

 

Oh, and on interest rates. When I logged in to pay my bill I was greeted with a Preapproved 30k personal loan offer at 5.8% APR.  Don't think I've ever seen anything that low!

Edited by cashnocredit

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What about removing them as an AU and then adding them back when the home has closed?  You would then have the online confirmation to provide to her that she was no longer associated with the balance...

 

Hard to say what AXP might do on a phone call though, but at least their Platinum phone staff tend to be based in the States and should understand what is going on.  I would suggest calling during the day though and not afterhours...

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2 hours ago, centex said:

What about removing them as an AU and then adding them back when the home has closed?  You would then have the online confirmation to provide to her that she was no longer associated with the balance...

 

Hard to say what AXP might do on a phone call though, but at least their Platinum phone staff tend to be based in the States and should understand what is going on.  I would suggest calling during the day though and not afterhours...

I just missed the credit department's hours. The rep was quite polite and clear spoken as expected with Amex and he could close the card immediately but didn't know if it would report to the CRAs immediately. My AU needs to have it reported directly to the CRAs because everything is automated based on the CRA reports.

 

The rep did give me a direct phone no. to the credit department and I will call them tomorrow. It isn't clear to me that even closing the card would get it reported to the AU's CRA file immediately.

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It seems the mortgage underwriters doing her mortgage refi are incompetent.  They should be able to omit any debt reporting on her report as “authorized user” with a statement written/typed by her saying she is only on the account for business purposes and is not financially liable for the repayment.  

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25 minutes ago, gerray said:

It seems the mortgage underwriters doing her mortgage refi are incompetent.  They should be able to omit any debt reporting on her report as “authorized user” with a statement written/typed by her saying she is only on the account for business purposes and is not financially liable for the repayment.  

Yeah, you would think so but they go by the credit reports and Amex AUs are responsible for any debts they incur as well as the principal. And CRAs don't break down where the debts came from. Credit reports are their holy grail.  Good thing they didn't pull a few days earlier because the prior balance was around 8k. Her credit is good (800's) and, being a charge card, it's not affecting her scores. Just messes with the debt/income ratios they calculate by adding another 10k/y to debt load  the way they calculate it.

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48 minutes ago, hegemony said:

wasn't there a master list on this? hmmm...

perhaps buried in the B* and FICO hacking research threads? I searched but I'm not sure what key words will delimit the search enough.

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16 minutes ago, hegemony said:

perhaps buried in the B* and FICO hacking research threads? I searched but I'm not sure what key words will delimit the search enough.

The only thing I recall was discussions re creditors that reported mid-cycle. For instance Chase reportedly does this if you prepay in full early in the cycle. I've had mixed results with Chase. In one case they reported a 0 balance mid cycle but in another they didn't. I know Amex doesn't on their charge cards as I've often PIFed just after getting my statement. I believe some other issuers also report early upon PIF.

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On 9/12/2019 at 10:47 AM, cashnocredit said:

Yeah, you would think so but they go by the credit reports and Amex AUs are responsible for any debts they incur as well as the principal. And CRAs don't break down where the debts came from. Credit reports are their holy grail.  Good thing they didn't pull a few days earlier because the prior balance was around 8k. Her credit is good (800's) and, being a charge card, it's not affecting her scores. Just messes with the debt/income ratios they calculate by adding another 10k/y to debt load  the way they calculate it.

 

Can you copy & paste where in the T&C AmEx states AUs are liable?  I don't see that in my copy of the T&Cs for either personal or biz cards. 

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11 hours ago, PotO said:

 

Can you copy & paste where in the T&C AmEx states AUs are liable?  I don't see that in my copy of the T&Cs for either personal or biz cards. 

My bad. Outside of some Corporate cards, Amex no longer holds additional cardmembers responsible for their charges. IIRC, they dropped that on personal charge cards almost 10 years ago.

 

But they once did. They were even sued by one "AU" when the principal cardholder died whereupon Amex canceled their AU card. The suit claimed unfair credit discrimination because the additional cardmember was also responsible for their charges. Amex won the initial court case but it was reversed on appeal.

 

There are still remnants of this practice. Amex checks credit (soft) when adding additional cardmembers and they shouldn't be authorized to do this w/o a credit interest.

 

Why AU status is even considered for scoring or evaluating any soft of mortgage application seems rather archaic but such is the effect of inertia and long history of doing things a certain way. Change is anathema.

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9 hours ago, cashnocredit said:

There are still remnants of this practice. Amex checks credit (soft) when adding additional cardmembers and they shouldn't be authorized to do this w/o a credit interest.

 

Your bad, again.

 

I've added my kids as AUs.  It's impossible there were soft INQs since 13-year-olds don't have a credit file to soft.

 

I've added my wife and sister-in-law as AUs, also no soft.

 

One strange thing AmEx now does is report the AU account opened on the AU's credit report as of the day you added them as an AU and not, as other issuers do, as of the day the account was originally open by the primary cardholder.  

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26 minutes ago, PotO said:

 

Your bad, again.

 

I've added my kids as AUs.  It's impossible there were soft INQs since 13-year-olds don't have a credit file to soft.

 

I've added my wife and sister-in-law as AUs, also no soft.

 

One strange thing AmEx now does is report the AU account opened on the AU's credit report as of the day you added them as an AU and not, as other issuers do, as of the day the account was originally open by the primary cardholder.  

Yeah, they changed that too. Used to report when the account was opened or, earlier, your oldest Amex account. Those days are long gone.

 

They ask for ss# and are known to decline to add AUs when their credit sucks sufficiently. But for people with no credit records there would be nothing negative.

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