Introduction

An Amex financial review (FR) is not something anyone looks forward to. However, if you’re trying to rack up Amex points, it’s important to know how to avoid being targeted. And if you’ve already been flagged (sorry!), you’ll want to know how to handle it to prevent your accounts from being shut down. This post is based on my experience helping readers navigate FRs and includes tips and tricks I’ve gathered from reliable sources.

Why Does Amex Do Financial Reviews?

Amex conducts financial reviews to protect itself from cardholders who may default on payments. They want to ensure that you have the income to cover your spending. During a financial review, Amex may request access to documents like your tax return to verify your income. If Amex determines that your income is insufficient, they may shut down your accounts or lower your credit limits.

What Triggers an Amex Financial Review?

Amex doesn’t disclose the exact factors that trigger an FR, but here are some known triggers:

Amex Financial Review Triggers:

• Credit Limit Above $25,000 on a Single Card: Having a credit limit of $25,000 or more on a single Amex card is a common trigger.
• High Total Credit Limits: Some suggest that a combined credit limit of $35,000+ across all Amex cards can also trigger an FR.
• Frequent Spending Power Checks: Checking your spending power more than three times a day could raise red flags.
• Returned Payments: If a payment is returned due to insufficient funds, this can instantly trigger an FR.
• Sudden Dramatic Change in Stated Income: Reporting a significantly higher income on one application shortly after another can trigger an FR.
• Sudden Increase in Spending: A sudden jump in spending (e.g., from $1,000 to $10,000-$15,000 in one month) may trigger an FR.
• Spending Close to Stated Income: Spending close to your stated income (e.g., spending $40,000 in two months on a $50,000 stated income) could trigger an FR.
• Cycling Payments: Continuously maxing out and paying off your card multiple times in a month, especially if the spending exceeds your credit limit, can trigger an FR.
• Buying High-Ticket Items or Gift Cards: Purchasing luxury items, large quantities of gift cards, or expensive electronics in a short period may trigger an FR.
• Spouse or Household Member Being Targeted: If someone at the same address is targeted for an FR, your account could be flagged too.
• Random Reviews: Sometimes, Amex conducts random reviews without any specific reason. Even new applicants can be flagged.

Your Account Has Been Targeted for a Financial Review. What Happens Next?

If your account is flagged for an FR, here’s what to expect:

• Account Suspension: You’ll see a popup when logging in, stating that your charging privileges are suspended. A phone number for the Amex FR team will be provided.
• Notifications: You’ll receive an email and a letter informing you that your accounts are under review and instructing you to contact the FR department.
• Frozen Accounts: During the review, your accounts will be frozen, and your reward points won’t be available for redemption.

What to Know Before Calling the Amex FR Team

Financial reviews vary in intensity. Some may only require you to verify details over the phone, while others may require you to provide income verification documents. Before calling, prepare explanations for potential questions, such as:

• Why Have You Spent So Much Recently?
• A good response might be that you recently got married (you could even show a wedding invitation).
• Why Was a Recent Payment Returned?
• A valid excuse might be using the wrong bank account for the payment.
• Where Is Your Income Coming From?
• Be ready to explain your employment situation.

If you have business cards under a sole proprietorship, be prepared to explain the nature of your business and spending habits.

What Documents Will I Have to Provide?

In most cases, Amex will ask you to sign IRS form 4506-T, allowing them to access your tax return. While they can’t force you to provide this, refusing will likely result in your accounts being shut down. If your reported income matches your tax return, your accounts should be reinstated within 10-14 days. If your tax return shows lower income than reported, your accounts may be closed or your credit limits reduced.

Should I Bother Calling the Amex FR Department?

Yes! Even if you think you might not pass the review, it’s always better to engage with Amex. Ignoring the review will result in your accounts being closed. Engaging with them might still result in reduced credit limits, but it’s better than losing your accounts entirely. Moreover, once you comply, your accounts won’t remain flagged even if they end up being closed.

What If I Don’t Have a Tax Return?

If you’ve never filed taxes, explain this to the representative and offer to provide bank statements showing your income. While not guaranteed, Amex has accepted this documentation in the past, and it’s worth trying.

What If My Accounts Get Shut Down?

It’s not pleasant, but if your accounts are closed, you have options. You can try re-establishing your relationship with Amex by applying for a new card later, or you can apply for new cards with different banks. Use our Ultimate Credit Card Finder to find a card that fits your needs.

What Happens to My Reward Points if My Accounts Are Shut Down?

If you fail the FR, Amex won’t allow you to redeem your points in the usual way. However, some have reported being able to redeem points up to 30 days later by speaking with a supervisor. For NY residents, as of December 10, 2023, reward points must be available for redemption for 90 days after an account is shut down.

Will Being Shut Down Affect My Credit Score?

Generally, having your accounts shut down won’t affect your credit score, except in these cases:

• Oldest Account Closed: If the closed card is one of your three oldest, it may slightly impact your score.
• Open Balance: If the account has an open balance, it will affect your score until the balance is paid in full.

Should I Close My Account Before Amex Closes It?

No. There’s no evidence that closing your account before Amex does will improve your situation. Most credit reports include at least one account closed by the grantor, and it typically doesn’t affect the credit score.

Frequently Asked Questions

Q: How long does the Amex FR process take?

A: The process can take 2-3 weeks if you promptly contact the FR team and submit the required documents.

Q: What should I remember when speaking to the Amex FR team?

A: Be prepared to explain your spending and provide accurate documentation.

Q: Can Amex claw back points even after I redeem them?

A: Yes, Amex can claw back points if the review results in account closure.