Amex sometimes targets cardholders with a financial review (aka FR).

We did a comprehensive post in the past going through the different things that can trigger the financial review. But this time, let’s discuss what you should do once your account is already triggered.

How do I know if my account was hit with an Amex financial review?

When you log in to your account or mobile app, you will see a pop-up stating that your charging privileges are suspended. A phone number for the Amex FR team will be included. 

If you call the Amex customer service line, you will immediately be transferred to the Amex FR team. You can only speak to a representative during regular business hours. 

You will also receive an email and letter notifying you that your accounts are under review. The email/letter will tell you to call the Amex FR department. 

During the FR process, your accounts will be frozen and your reward points will not be available for redemption.

What do I need to know before I call the Amex FR team?

There are different levels when it comes to financial reviews. The FR process depends on the level at which your account has been flagged. One level will just ask you to verify some details over the phone and let you go once they’re satisfied. 

In most cases (when the account has been placed on a higher level), they will ask you to provide documents that verify your income amount. 

Before you call, you should prepare explanations for the questions Amex may ask, such as:

*Why have you spent so much money in the last two months? A good answer for this is that you’ve recently gotten married. You can even show them your wedding invitation. 

*Why was a recent check returned? A good answer for this is that you accidentally used the wrong bank account to make the payment, etc.

*Where is your income coming from? Employment, etc. If your portfolio of cards includes business cards (especially ones that are under sole proprietorship), then make sure to prepare solid answers on the nature of your business and spending habits. 

What documents will I have to provide?

In most cases, the representative will ask you to sign IRS form 4506T, giving Amex access to your tax return. Amex cannot force you to release your tax return. But if you do not give them access, your account will most likely be shut down. 

If your income on your tax return is in line with what you reported on your application, then you should pass the FR with flying colors. Your account will be up and running within 10-14 days.

If, however, the tax return is lower than what you wrote on the application, then one of two things can happen:

1. Your accounts will remain open, but your credit limits will be reduced
2. Your accounts, unfortunately, will be shut down

Should I bother calling the Amex FR department?

Absolutely yes! Even if you believe that you have no chance of passing the review, you should always get in touch with them. If you do not call, then your account will definitely be shut down. On the other hand, never assume that you won’t pass the review. In the past, I’ve seen many people that had given up hope, pass their financial review! It’s true, their limits were lowered, but that’s still better than having your accounts closed!

Another reason why you should go through the process is that Amex will keep your accounts flagged as long as they don’t see your tax returns. If you apply for an Amex card in the future, they will either way request your tax returns. If you comply, however, and send it to them right when they ask, your accounts will no longer be flagged even if they end up closing them! 

It’s worth it just to be able to get approved for a new card.

What should I do if I don’t have a tax return?

If you never filed taxes then you can try to explain to the rep that you have no returns to show. You can ask them to accept a bank statement that shows your income check/direct deposit etc. that comes in every month or so. In many cases, the representative will agree to that. Even if they don’t agree, you can try to upload it instead of the IRS 4506T form. I’ve seen Amex accepting it in the past,and reopening the accounts. It’s not guaranteed, but definitely worth a try. 

What should I do if my accounts get shut down?

The bad news is that you’ll have the same feeling as being kicked out of school. It’s not the best feeling, but swallow it and move on. (Take THAT, Amex!)

You can either try to re-establish your relationship with Amex by applying for a new card after about six months, where, as mentioned above, they won’t ask you for your tax return even if you’ve failed (they, thank G-d, have a bad memory). Or you can go ahead and apply for new cards at different banks. In either case, you can use our Ultimate Credit Card Finder, to find a new best card that will fit your needs perfectly.

What happens with my reward points when my accounts are shut down?

If you fail the financial review, then Amex will not allow you to redeem your points the usual way. Many have reported that they were able to redeem award points up to 30 days later, by talking to a supervisor, or if that’s not successful, then HUCA (hang up, call again).

For NY residents your reward points need to be available to redeem for 90 days after the shutdown. You can read more details here.

Will being shut down affect my credit score?

In my experience, having your cards shut down will not affect your credit score. The exceptions are:

1. If the card that was closed is one of your three oldest, active accounts.
2. If the account that was closed has an open balance. This will only affect your credit score until the balance is paid in full. 

Other than these reasons, there is no reason to worry about it affecting your score. 

If the account that was shut down is one of your oldest three accounts, then you might see a slight decrease due to the loss of credit history. However, there’s no use crying over spilled milk, so swallow it (not the milk!) and move on. 

You can slowly start applying for new cards and get your history re-established, but this time, be smart and apply for credit cards at multiple banks. This is good so that if you get closed down again, you can still have your history from the other active credit cards.

Should I close my account before Amex closes it for me?

I’ve seen many on the web suggest that you close your account before Amex shuts it, in order to avoid your account from being marked as “closed at credit grantor’s request”. I do not recommend this. I have never seen such a mark affect anyone’s credit score. The majority of credit reports I’ve seen so far have at least one account that was closed by the credit grantor. Again, I have not seen any affect on their score.