Corp. AMEX - credit won't pass

Can the "COMPANY" co-sign???

GUARANTEE...

 

Being embarrassed is understandable. On the other hand, think of it this way:

1) Credit file errors cause consumers trouble every day, even though those mistakes are entirely the fault of the credit bureaus and not the consumer.

2) Identity theft is a huge issue today. Items sometimes show up on one consumer's report which really should have appeared in someone else's file.

3) Moreover, credit files are sometimes merged as a result of two consumers sharing very similar names.

4) Cosigning a loan for a relative or friend can cause a report to sail right into the dumper if the other guy (or gal) manages to screw up the payments on their own.

My point is that there can be many reasons why someone's credit becomes trashed when it otherwise shouldn't be. Although I generally don't advocate dishonesty, it's really not your boss's business to know if or why you have bad credit. If you decide to tell him that your credit files probably won't allow you to qualify for the corporate card without his or the company's co-signature, you can tell him whatever you want regarding the reason. You have less reason to be embarrassed than you may think.

Doc

 

Are you sure personal credit is checked? I have an AMEX corporate acct in my business, and I get notices every month asking me to add cardmembers to the account. I requested one for one of my employees, and Amex sent the card no questions asked. She didn't even have to sign anything. It was in her name too.

 

Yes for Corporate AMEX cards, they use your own credit to check. I am under the impression that your credit has to be extremely bad cause I got one and I had a judgment, lates, open collections, etc. My card came with restrictions though. Max for travel charges was $5k and max for retail purchases was $100! I eventually got the retail part (which I used the card most for) up to $500.

If they do deny you the card for some reason, your company can guarentee the card for you. Meaning, that if you default and the bill doesn't get paid, then the company will pay it anyway and probably take it out of your boss's budget. It's just a matter of signing a form and sending it back to AMEX. I know you're probably thinking that the bill will get paid regardless because it's only a matter of you submitting an expense report and either you or your company paying the bill. Well, think again. One problem that I've seen people have is that when they do their expense report, some of the items only get partially paid. For example: Say you go to dinner and have a bottle of wine that was $20 and your meal came to a total of $40. Well some companies have policies where they will not pay for alcohol with your meal, therefore...they will only pay $20 for your dinner. Say travel buys you a coach ticket to fly to New York from California and say when you get to the airport, you upgrade yourself to business 1st class with out prior approval and the difference between the tickets is $1k. Well, guess what? When you do your expense report, you think you're breaking even when in fact, YOU owe AMEX $1020 because your company won't approve the upgrade and the bottle of wine. So then you fight with your company but in the meanwhile, the $1020 is still outstanding and next thing you know you are 30, 60, then 90 days late and they have suspended your charging privilages and are charging you late fees, etc. Next thing you know, they report all of this on your credit report (they only report stuff when you are adversely delinquent, not when you pay on time). I've seen this happen time and time again to people at my previous job. The best was when this guy (driving a brand new Lexus might I add) couldn't get travelers checks sent to him AND his charging privilages where suspended all over a $16 traveler's check fee that he refused to pay for 4+ months! He had no clue that the fee was totally expensable.

So, I would just fill out the application for the card. If you say that it's manditory for people traveling to have the card, then you will get the card one way or another. It's just a matter of getting the card in a less embarassing way. I've have to process guarentee forms for people in the past and it was exteremly embarassing for me and them...but they got the card so...

 

I have the world's worst credit and got a corporate Diners Club. They did pull a soft inquiry on Experian, though.

 

My company's Amex Gold Corporate Card works this way, too. It took my credit (personal guarantee) for the cards, but all the employees have their own cards with their names on them. Amex did not base it on their credit, but mine. I don't think they even ask for a SSN for the employees (don't remember though). If the company does not pay they come after me, but not the employee whose name is on the card.

Vanessa,

Are you sure that the corporation cannot get you a card? A personal guarantee would need to be made - usually one of the officers of the company or the financial advisor, but then everyone else can get a card without Amex focusing on other employees credit. They would actually become AUs to the company and personal guaranteer. Amex will do this, but someone is going to have to step up to bat.

Good luck.

Dani

 

We have situations like this at my company were an individual's credit resulted in a denial by Amex Corp. Card.

All we have to do, is write a letter to guarantee payment to Amex and they always have issue the card.

 

Vanessa2,
I hope the following will help.
I applied for a Corporate AMEX in 9/2001 and was denied since my credit was bad. Just like you my company required me to carry a Corp. Card.
They looked at my Equifax report and denied me since I had 5 derogs. I spoke with the CSR and they informed me that my companyâ??s Finance dept has been told of the denial but they do not inform the finance dept the reason for denial since it is private (between me and AMEX). Please verify this with AMEX.
In my case, I just told my manager that I was denied since I had just bought a house and had done a lot of mortgage shopping, which resulted in my score dropping below required by AMEX. Partly true I did buy a house but went with a sub prime lender.
My manager sent an email to Finance Dept. to send AMEX a guarantee letter. I got an AMEX green corp. card in less than a week from the time my mgr. sent the email for guarantee. It does have a 10K limit, set by my company.
Amex sent me a letter saying that if I make timely payments on the card for 1 year they will remove the guarantee.
In your case, I would call AMEX and just verify that they do not disclose the reasons for denial to your company, and then just make up any excuse for the reason for denial, ask for a guarantee card. I am sure the finance dept. in your company will be able to help you.
Dan

 

Sorry...just got home and just now saw this.

Yes, there is a guarentee form (like 2 pages long) that has to be signed by an officer of the company. I think only the AMEX plan administrator has access to this form. So in my case, the VP of Engineering had to sign it and that was that. It was NO BIG DEAL to him...he didn't care. And AMEX will NOT disclose the reason for denial so no worries there. Does your company have a Corp. AMEX plan administrator? That is the person you should ask. They are the person that submits your application (probably on-line to a special site...or by fax to a special dept) and receives the denial if there is one. Then they are supposed to notify you that you were denied and offer you the guarentee form to basically sign, then you have the officer sign...and after it is submitted, you will have a card in less than 5 business days. If you are approved, I don't know if AMEX tells the administrator. All I know is that less than 4 days later there was a card in the mail for me. The process is rather quick and I think it's designed that way because they know that people need their cards ASAP. I didn't know about the restrictions until they sent a letter under separate cover stating so...or maybe it came in the same envelope as the card..can't remember.

I remember I had to submit an application for the the Executive Director. A week later he was wondering where his card was so I called the AMEX plan administrator and he instructed me that his application was denied for some reason. I was like, OH WOW! And I'm supposed to tell him this? This is a guy that has over $300k in his CHECKING account alone and drives a Mercedes CLK 55 AMG (along with owning like 7 Corvettes and an Accura NSX)! I was like, HELL NO I'm not telling him! So the plan administrator instructed me to have him call him and I did. Long story short....his application wasn't really denied...they just needed to speak with him to verify his SSN! Someone messed up the number by one number! Either the plan admin typed it in wrong on the AMEX web site or someone received a bad fax or whatever. I was so relieved because if this guy would of had to do a guarentee form, the s*** would of really hit the fan! BIGTIME!

 

My dad has the AMEX corporate card, and yes, they do check the individual's report. He had to do the big application and everything.

 

Vanessa-

I wouldn't sweat. The main reason anyone gets denied is former bad experience w/Amex (black list).

Most corporate cards have shifted to what's called "individual liability" ... you owe- you submit expenses - you get reimbursed. It's a good way for companies to be able to put cards into more employee's hands without having to worry about people going on binges.

Some (very few) companies still have "joint & several liability". My last 2 companies only had that set-up for the senior staff - the rest of us were individually liable.

Good luck - and stop worrying. You'll probably get it,and if not, it's easy enough to overcome.

-mj

 

"Boss, apparently even Amex agrees you don't pay me enough and as a result they won't even issue me the corporate card."

 

Doc said: it's really not your boss's business to know if or why you have bad credit.

What about companies (like Wall Street firms) that
run your credit as part of the hiring process? It's done all the time. Drug check, credit check, transcript check. (Letter from 3rd grade teacher

 

Vanessa,

I ran into the same thing you did. Because we have been working with a credit counseling agency, and our prior Amex accounts are currently on "the plan" (and thus automatically canceled by Amex) they initially denied my app when my employer asked me to get a card.

I called their 800 number on the rejection letter and explained the situation, and they went ahead and OVER THE PHONE changed their minds and got me a card with a $4K limit (and only $500 retail).

Since I do mostly retail stuff (software, domain names, computer stuff), this has been a slight problem. But I have used the card for my "own" purchases and paid them personally very faithfully for over a year now -- as someone mentioned earlier, many cards are paid and serviced by the employee with backup liability from the company. So each month I have used the card to buy me something -- dinner, software, etc. -- and paid it as agreed.

Now, it's been a little over a year, and when I needed to buy several hundred dollars worth of domain renewals, I ran into the "retail limit" problem. Amex looked at my history and saw that it was good, and said if our "program administrator" would fax in a form asking them to lift the spending limits, they would do it.

I should know something next week, but that's my story. Be persistent, get the card, use it, and push them to loosen up a bit after you prove yourself.

Good luck!

--Wantsa

 

Just had a conversation with my site manager today. I am 3 days into a new job. Recent BK and definately on AMEX blacklist. (owed them lots that were discharged).

He told me he would need to get me the corp card app. I told him not to bother. I wont qualify.

He then smiled and said "oh, your one of "those guys". Refering to the fact that I am not the only one in the office with trashed credit. I told him I really sweated the background check they did. Thinking I would not get the job. Apparently with these market conditions. They hire people with bad credit all the time.

He told me not to worry but it is a pain in the rear to get us advances for our travel all the time.

I assured him that I would be building a cushion of savings for travel meals and such. Hotels and Airlines are usually direct build.

It seems in these market conditions. Employers have more empathy to people than they did a few years ago.

Good Luck