Hi there, it’s Ernest from Trip Astute.
In this video, I want talk about American Express financial reviews, how you can avoid
them, and what to do if you happen to get one.
(light chiming music)
About a month ago, one of our subscribers, Kanniappan, told me that he was notified by
American Express that he was under a financial review.
The review was triggered after he made two charges via PayPal, both of which were used
to send money to others.
American Express contacted him and asked him for additional documentation, and also alerted
him that the Paypal payments were against their policy.
Though most frustrating was that they put a hold on his account, so he wasn’t able
to use his credit cards until it was resolved.
As many of you know, this is not an uncommon story or experience.
In fact, I went through one a few years when I bought several gift cards on my business
card, so it can easily happen to you.
So, I thought I would review how to reduce the chances of having a financial review,
and also, what to do if you find yourself in this situation.
So, let’s start with how you can reduce the risk of review.
Number 1) Be careful when sending money to others: As we learned from Kanniappan’s
story, his two PayPal transaction which were used to send money to others triggered his
review.
Since the banks are often worried about the possibility of money laundering, transferring
large amounts of money to others can raise a red flag, especially if you do it multiple
times in a short period of time.
Number 2) Be aware of your normal spending habits: Financial reviews are generally triggered
when the issuer detects something out of the ordinary.
The process is automated, and their systems look for spending patterns that are different
than your normal spending.
So, you may want to be careful when making a large purchase on a card within a short timeframe,
especially if the card is new or if it hasn’t been used very much.
Number 3) Notify issuer of a large upcoming expense: If you think you’ll be making an
extremely large purchase that may be out of your normal spending pattern, it might be
worth letting the issuer know you plan to make a large purchase.
This can also reduce the chance of a fraud alert on your account.
Number 4) Be honest about your income numbers: American Express allows you to request a line
of credit increase by providing your total annual income.
Trying to inflate your income amount can definitely trigger a financial review, especially if
your reported increase doesn’t sound reasonable.
I recommend being honest with your stated income so you won’t have any issues proving
it if asked.
Number 5) Clicking the “Spending Power” button (more than once): Sebby from AskSebby
mentioned this one in his video, which was really interesting.
He mentioned he tried to click on the Spending Power button which confirmed that he eligible
for a larger purchase.
However, it looks like since he clicked on it more than once, he was immediately hit
with a financial review, even though American Express approved the requested spending limit.
So, if you end up getting a financial review, there are generally three outcomes that can
occur.
One is that American Express confirms your information and releases your account holds.
The second is that they release the hold on your account, but then they lower your credit or charge
limits.
The third possible scenario is that American Express finds you to be too high of a credit
risk or find a discrepancy in your stated income, and they close your account.
Now, if you do find yourself in the situation that you are under financial review, you’ll
want to follow these tips:
Number 1) Be courteous and cooperative: It may seem frustrating and ridiculous to you,
but try to remember that American Express is trying to protect their business as well.
My advice is to be as courteous, cooperative, and professional as possible, and resist the
urge to be annoyed or angry with the specialist that contacts you.
Number 2) Provide requested documentation: Make sure to provide any documentation that
can help your case as soon as possible.
In this situation, being proactive and responsive can definitely help influence the situation.
Also, if you think you there may be additional information that American Express should consider,
don’t hesitate to document it and provide it to the financial review specialist assigned
to your case. And finally,
Number 3) Relax: I know that this can be a scary situation, and not one that anyone likes
to experience.
However, just know that it happens all the time.
As long as you’re not lying or misusing your cards, then you’ll likely come out
ok.
And if you do happen to fail the review process, then things will still be ok.
There will always be new card offers and issuers in the future, so don’t be worried if things
don’t work out.
Luckily for our subscriber Kanniappan, he was contacted by American Express a few days
later and informed him that after reviewing his spending and payment history, they were
canceling the review and removing the hold from his account.
They did warn him against using services like PayPal to transfer money to others, but he
essentially passed without any issues.
I want to personally thank Kanniappan for sharing his experience with us, and even urging
us to share his story in order to help others.
Hopefully, we can learn from his experience and be better prepared for similar situations.
Have you ever had a financial review from American Express?
If so, please share your experience below.
Also, let us know if you have any questions.
If you’re interested in applying for any of the cards featured in this video, check
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Until next time.
Travel safe and travel smart.