Whether American Express (Amex) will issue a credit card to someone who has filed for bankruptcy depends on several factors, including the individual’s credit history, the severity of the bankruptcy, and Amex’s specific policies at the time of application.
Getting an American Express credit card after bankruptcy is possible, but it’s a tough hurdle to overcome. Here’s the breakdown:
Strict Standards: American Express is known for being stricter than other issuers when it comes to credit history. A bankruptcy filing will stay on your credit report for 7-10 years, making it difficult to qualify during that time.
Approval Chances: There’s no guarantee of approval even after the bankruptcy falls off your report. Amex considers various factors like your current income, credit score, and overall financial health.
Alternatives: While a new credit card might be out of reach, American Express offers alternative services like prepaid cards that can help with rebuilding credit.
If you’ve filed for Chapter 7 bankruptcy, which provides a fresh start by wiping out most of your debts (except student loans and government liens), many credit card issuers may view you as less of a risk. However, American Express tends to shut down accounts the moment its records indicate a card member has entered the bankruptcy process. If you have a Chapter 7 bankruptcy on your credit report, American Express won’t issue a credit card or a charge card. That bankruptcy listing stays on your credit profile for up to 10 years, so it could be as many as eight more years before you qualify to make charges on an Amex card.
Reports of Blacklisting if you Include them in Bankruptcy and Approvals Possible if you don’t!
According to anecdotal reports via chat forums and Reddit, people have stated there’s a very long blacklist if you include or burn American Express in your bankruptcy. However users have also stated that they filed bankruptcy and didn’t include American Express or paid off the balance in full and had positive experiences with getting an American Express card post bankruptcy. There were rumors that there’s a 61 month rule post bankruptcy for approvals although this is not confirmed it is probably something to base application approval odds on.
Even if you had an American Express card that you didn’t pay off before your bankruptcy filing, they won’t open a new line of credit for you. However, American Express still wants to do business with you. They launched American Express Serve, a full-service reloadable prepaid account.
A success story proving Amex will approve someone with a bankruptcy on their credit report
“My Journey to American Express Gold After Bankruptcy: A Surprising Turn of Events!”
I couldn’t believe my eyes when I checked my email this morning – American Express, the pinnacle of exclusive credit cards, had extended a pre-approval offer for their entire lineup. Yes, you read that right – American Express reached out to me, someone who had filed for bankruptcy just five years ago.
To provide some context, my bankruptcy filing was a Chapter 7, and I had diligently kept my American Express account in good standing throughout that process. With credit scores ranging from 710 to 720 and a utilization rate between 0% and 2%, I was cautiously optimistic. Despite the bankruptcy stain on my financial history, I had managed to maintain around $80,000 in credit limits and a healthy income of $128,000.
I decided to take a leap of faith and apply for the American Express Gold card – and to my amazement, I was approved! This unexpected turn of events shattered the misconception that American Express was off-limits for those with a tarnished credit score.
This experience serves as a beacon of hope for anyone who’s faced financial setbacks. Even with a bankruptcy in your past, there’s a chance to rebuild and access prestigious credit opportunities. So, to those who may be feeling discouraged, remember – there’s always hope on the horizon.