Rejected from AmEx Credit Application. Where to from Here?

ninnypoop on 28/11/2023 - 09:49
Last edited 28/11/2023 - 10:27

Hi all,

Im new the world of churning and collecting flight points. I recently applied for the Amex Velocity Platinum card (with $6k credit limit) and was rejected.

I previously had (in the last 12 months):

  • An ANZ card with $15k credit limit (closed 2 days prior to Amex application)
  • A NAB card with $6k credit limit (closed 1 month prior to Amex application)

I currently also have a 28Degrees card open (for travel) with a $3k limit (had this open for about 10years).

I also applied and was accepted to the Virgin Velocity flyer card about a week before applying for the Amex.

I earn ~$90k a year. Have no dependents. Credit rating is at 816. No other loans.

Im trying to learn where I went wrong and would like to know the best way forward.

Did I go too hard too quick? How long should I wait before applying for Amex again? Should I hold off from applying for any card for a while?

Hope some with more experience can shed some light.

Cheers,

Financial Credit Card

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Comments

  • bobbified on 28/11/2023 - 09:59
    +11

    Credit rating is at 816.

    [after this rejection]…WAS at 816. 😋

    • ninnypoop on 28/11/2023 - 10:01

      I checked the credit rating once receiving the notice from Amex and it said 816 (notice from Amex is dated 19/11 - checked on the 27/11). Has it likely not updated to reflect the rejection? If so, how severely does a rejection impact rating?

      • bobbified on 28/11/2023 - 10:48

        I won't pretend to know the timing or severity is, but I do know that the score generally takes a hit after each application - whether successful or not.

        • ninnypoop on 28/11/2023 - 10:52

          Ill keep an eye on it!

          • Brick50 on 28/11/2023 - 13:14
            +1

            @ninnypoop: My score doesn't get too hurt by enquiries, I believe your score/report only gets updated each calendar month.

            I find my score stays the same until the start of the month, and if i close a credit card it will usually be updated on the report at the start of the month even if it reflects that it was closed halfway through the month

            You need to either wait for your existing cards to show closed on the report or hope you don't get auto declined so you can atleast explain to the credit assessment team that you have closed the card.

            I'd strongly suggest your income is not high enough for $24-30,000 of credit which is what they see when you applied for that card

  • CptnObvious on 28/11/2023 - 10:07
    +7

    "Did I go too hard too quick?"

    My Man (in Denzel voice)

  • CurlCurl on 28/11/2023 - 10:09
    +19

    The amount of drama people have here trying to save a few dollars churning credit cards, buying shonky gift cards, churning internet and phone companies, having multiple food delivery accounts, Netflix sharing, 7 eleven fuel discounts etc puts a smile on my face everyday.

    • ninnypoop on 28/11/2023 - 10:13
      +11

      I just saved ~$700 on flights to SE Asia. Had free travel insurance earlier in the year and will again for all future trips. Still have enough velocity points to do the SE Asia trip all over again.

      Well worth the ~15mins application process to me. I wrote a post that took around 2 mins seeking advice on how best to move forward. Personally, Im annoyed at myself for not churning as soon as I turned 18.

      Considering your sentiment, Im more confused as to what you're doing here on a bargain site.

      • mbck on 28/11/2023 - 10:28
        +3

        There's a degree of ozbargain'ness' and everyone is different.

        I can see how people can save a lot of money doing what curlcurl described. But for some people, it's too much effort for the "value" (hey, maybe he earns 500k a year and has multiple amg as investment 'vehicles').

        Each to their own.

        In regards to your situation. It's probably opening 2 cc too recently. You need to wait at least 6 months. Even then, it's not a guarantee, but it does give you a better chance.

        • ninnypoop on 28/11/2023 - 10:36

          thanks. I got greedy! Learnt my lesson

      • jv on 28/11/2023 - 10:28
        +7

        I just saved ~$700 on flights to SE Asia.

        I saved more than that by not going.

          • ninnypoop on 28/11/2023 - 10:40
            +1

            @CurlCurl: What are you talking about?

            At one point you are criticising people saving a few cents on roast chooks (as below). Next you are critcising me for saving a couple of hundred (sign up bonus + 30,000 V points) on my next flight.

            Which is it?

            • CurlCurl on 28/11/2023 - 11:28

              @ninnypoop:

              What are you talking about?

              My sincere apologies. I Thought I was replying to someone else. I have removed the post.

      • CurlCurl on 28/11/2023 - 10:32
        +6

        I just saved ~$700 on flights to SE Asia. Had free travel insurance earlier in the year and will again for all future trips. Still have enough velocity points to do the SE Asia trip 3 more times over.

        That's a great save but I'm not talking about that. It's the miniscule dollars that people are trying to save.

        I have a son in law that does that. Coles. Woolworths and Aldi were out of BBQ chickens one day. He refused to pay an extra 90 cents from a chicken shop. Mind you he drove to two shopping centres in different suburbs. That's the mentality I'm talking about.

        I see it here everyday.

        • ninnypoop on 28/11/2023 - 10:36

          I agree with you there!

        • richrichie on 28/11/2023 - 10:50

          I completely agree with this.
          From many years lurking here, I learn to read the comments to see the effort required to score some bargains.
          Usually try to avoid those gift cards X% off when I start seeing people reporting the problems they have during activation etc.

          For credit card, the most recent painful one was the Suncorp Qantas Credit Card. Took so many calls before they are willing to process my bonus points manually.

          • [Deactivated] on 15/12/2023 - 09:42

            @richrichie: Prepaid MasterCard are awesome for me, pay all my bills and buy wine! I use them on Qantas wine, gift cards for BWS or my wine brokers

            Next time I'll buy 5k worth, need alot just for council rates, water rates blah blah blah

        • spackbace on 28/11/2023 - 12:14

          Agree with the small savings part

          I can however see the advantage of credit card churning, with sign-up bonuses etc

    • richrichie on 28/11/2023 - 10:43
      +3

      The savings might not make me rich, but the satisfaction of getting good bargains is what makes the whole process addictive.

      Though from your list, only the credit card churning really interests me. Only do about 4x new cards a year to cover for annual overseas holiday on business class, airport lounge access for me & family for other domestic trips, free misc insurance, hotel voucher, airlines status, etc.

      Not enjoying the drama when things occasionally go wrong though.

    • Nillionaire on 28/11/2023 - 11:08

      having multiple food delivery accounts

      ? What's wrong with this?

    • maverick1 on 28/11/2023 - 12:31
      +1

      Glad you have such limited idea about CC churning!

    • Brick50 on 28/11/2023 - 13:15
      +1

      Most of these CC's net you around 100k QF or VA velocity points. You can sell these on the forum for $1000-$1200. Hardly say it's a few dollars

      • daft009 on 30/11/2023 - 07:09

        Which is against the program rules

        • Brick50 on 30/11/2023 - 18:02

          correct but I would argue that is their minimum value, and then you can use them for higher value reward like overseas business seats etc.

          You can make as many burner qantas accts as you want and if it gets banned who cares, don't mix personal and churn accounts

    • carlJack on 28/11/2023 - 14:38

      If you are not doing that then you are in the wrong site.

  • burningrage on 28/11/2023 - 10:24

    Did you try calling them about it?

    I know these companies are sworn to secrecy as to why they are declining your application despite good credit history and demonstrated credit worthiness but I am finding some agents have looser tongues than the others and would hint as to why you were declined.

    OP didn't specify the amount he/she is looking for so it's bit hard to assess but I am finding that's the main reason why my application got declined lately.

    • ninnypoop on 28/11/2023 - 10:26

      sorry, was $6k limit for credit rating. I went as low as I could. While I did intend to hold the Amex as a daily grinder, I really dont need excessive credit. Will update post.

      Maybe I will try give them a call.

      • Mechz on 28/11/2023 - 13:14

        Maybe they want people with higher limits as more chance of collecting interest which is the main goal.

  • geekcohen on 28/11/2023 - 10:25
    +2

    An ANZ card with $15k credit limit (closed 2 days prior to Amex application)
    A NAB card with $6k credit limit (closed 1 month prior to Amex application)

    That probably didn't help because it would still show on your credit file, especially the ANZ. It can take some time for cards/accounts to be "closed" on your credit file. I have had it take a few months to reflect.

    • ninnypoop on 28/11/2023 - 10:29

      Im thinking this is the problem too. I got impatient (greedy) and wanted to scoop the extra velocity 30k bonus.

      Will probably sit tight for a few months and then try again for amex.

    • [Deactivated] on 28/11/2023 - 10:59
      +1

      This is exactly my thought.

      2 days is nowhere near enough time. My guess is they could still see too much credit on file still. Most likely need to wait.

  • MS Paint on 28/11/2023 - 10:26
    +5

    Did I go too hard too quick?

    That's what it looks like to me. I also think you applied for too much credit in a short period of time.

  • richrichie on 28/11/2023 - 10:26

    Do you have any other loan? Personal loan or mortgage?
    And what sort of credit limit did you request for this new Amex Velocity Platinum?

    With 90K income, I think you might be pushing it a bit too much with two current active cards + 2 recently closed cards and now applying for another one.
    Your card closure might not have been reported yet.

    Having said that, I also can never figure out the patterns, seems to be bank / provider dependent.
    Some are just more difficult to apply than the others. I've had a couple card applications rejected too in the past (used to have a lot of problems with citi cards).
    But it didn't cause me any problems applying recently. I waited about 6 months before I put in another applications, not with the same bank though.

    If I am in your position, I'll probably wait at least 6 months before attempting AMEX again. And perhaps at least 3 months before applying to another card?

    • ninnypoop on 28/11/2023 - 10:34

      Sorry, updated the OP with the $6k limit i was applying for with amex and the fact I have no other loans.

      Thanks for the insight. Ill sit on it for a while and try again next year. Have enough points to tide me over until then.

  • [Deactivated] on 28/11/2023 - 10:29
    +2

    Your rejection letter would have stated it's due to the credit report which is likely because of those two cards you've recently closed.

    Attach the closure letters and send it to [email protected] quoting your reference number and see how it goes.

    • ninnypoop on 28/11/2023 - 10:33

      Oh yeah, it does say unable to approve 'based on credit information received from Veda, a Credit Reporting Body in Australia'.

      Is this likely due to closing two cards recently? In the future should I wait a few months after closing a card? How long should I now wait before applying again?

      Thanks

      • [Deactivated] on 28/11/2023 - 10:38
        +2

        Last time I spoke to them it was something like 3-6 months.

        • ninnypoop on 28/11/2023 - 10:42
          +1

          thanks for the insight. Ive learnt my lesson moving forward.

  • Nillionaire on 28/11/2023 - 11:10
    +2

    Just contact AMEX. Let them know you have closed your accounts because you like their product and services better. If you're applying for Platinum, compliment their concierge service.

    • ninnypoop on 28/11/2023 - 14:22

      I might give this a go. I did intend to have the Amex card as a daily driver, so wouldn't even be lying to them.

  • Unorthodox on 28/11/2023 - 11:22

    Yeah, your ANZ card wouldn't even be reflected as closed yet… Generally you need to wait for at least another statement period (plus ANZ sends out paper cancellation letters so I wouldn't be surprised if they're even slower).
    At $15k that's already the minimum credit limit for one of the highest end Black cards they have.

    Your other velocity one would also be showing which you haven't said the limit for.

  • Drakesy on 28/11/2023 - 12:26
    +2

    Don't sweat it.

    AMEX are one of the strictest imho. Never get rejected from other banks until i get to Amex. I don't think they like churners. They're unfortunately within their rights when it comes to it and don't have to provide reasoning even though you may be in a favourable financial position.

    • bazinga8888 on 28/11/2023 - 16:11

      my experience was the other way. Never had AMEX rejection.
      I had Bank of Melb rejected me for some velocity rewards card, next day applied Amex and approve immediately.

    • reactor-au on 29/11/2023 - 08:52
      +1

      Same, only ever been rejected by Amex. My credit rating is low 900s, was high 800s when I applied for the Amex.

  • chickennix on 28/11/2023 - 14:46

    How many business days did it take them to let you know the result of your application?

    • ninnypoop on 28/11/2023 - 14:51
      +1

      8 days. A. I was waiting for an email but a letter was sent in the mail, so at the mercy of Auspost right now too.

      • chickennix on 28/11/2023 - 14:52

        Thanks! Good to know. Currently at 5 days

  • clayaa on 28/11/2023 - 15:42

    This also depends on what card you applied for.
    Similar story to me. I applied for a AMEX Qantas Ultimate on Friday. On Monday, I decided to cancel the application and applied for the explorer. 2 hours in I got my rejection.
    Call them, asking for why is it rejected, and asked to activate my cancelled Qantas Ultimate application and got approved during the call (less than 5 minutes).

    • clayaa on 28/11/2023 - 15:43

      At the same time I hold a Westpac Plat card with 6k limit.
      I only earned like 70k last year.

    • ninnypoop on 28/11/2023 - 15:54

      Thanks for sharing. Ill try calling them.

  • Benno007 on 29/11/2023 - 08:54
    +1

    I was in a similar situation to you except double your salary, similar number of cards and still got rejected for a $6,000 St George card 😂… but months later got approved for an ANZ $6,000 card, and have now cancelled my $15k card. So hopefully in another 6-12 months I can get another black card

    I churn every 8-12 months rather than 3-6. The business class upgrades alone are worth it IMO…

    • GeneralKeen on 29/11/2023 - 12:58

      I had bad experience with St George too, multiple rejections lately especially after the Mortgage interests hikes.

  • gembel on 29/11/2023 - 13:19

    Im in the same situation.
    Amex Velocity Platinum minimum credit limit is actually $3000.

    Closed ANZ $15k card 8 days ago
    Closed NAB and CBA $6k cards end of October

    I applied Virgin Velocity Flyer $6k and Amex Velocity Platinum $3k got automatically declined for both :(

    Probably will try my luck again in December before the Velocity promotion ends..

    • ninnypoop on 29/11/2023 - 13:42

      Haha very similar situation! Luckily I got accepted for the virgin card.

      How do you know if you get auto declined? Does Amex still send a letter or do they tell you at end of application?

      As someone on this thread recommended, I've now emailed Amex with information to see if they can relook at it. Will let you know the outcome.

      • gembel on 29/11/2023 - 13:48

        I called Amex and they told me I got declined. Then few days later got the letter with the same Veda credit thing.

        • ninnypoop on 29/11/2023 - 14:03

          And they wouldn't budge at all? Did they provide any further detail? Allow you to state a case at all (i.e., explain that you recently closed your other cards)?

  • Colinzzzz on 14/08/2024 - 15:17
    -1

    I thought I would share my experience with American Express with you.

    I submitted 1 PDF document to AMEX for their credit card verification, on their online application system. I asked for min $2k credit as I just want it for the QF points. If need to, I will request an increase after it is approved.

    AMEX kept sending me a reminder to suppy them for the document I already supplied. Submitted again. More emals from then asking to submit same.
    So I emailed them. No response after 2 days.

    So, I just called their 1300 number .. answered within 1.8 seconds.
    US accent, so I assume USA based.. He said, yep I can see your email, let me verify things. 28.5 seconds later, he came back and said approved!!

    After spending a couple of hours dealing with Oz businesses today …. typically 30 mins wait on hold (from OS mind you), 15 mins internal hold, then disconnected etc etc, this was a very welcome experience from Amercian Express, and he was very pleasant too … well done USA!

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