Switching from Amex Gold to Blue Cash?

American Express forum. Talk about AmEx credit cards like Blue, Gold, Platinum, Centurion, and more.
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giosif
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Switching from Amex Gold to Blue Cash?

Postby giosif » Sun Jan 22, 2012 10:30 am

I have had a Gold Amex card with 1 dollar x 1 point membership rewards plan for several years now with a $75 membership fee [my wife also has hers w/o additional fee]

I noticed that most airlines I fly with are opting out of accepting transfer of membership rewards points

I usually spend several thousands a year in AMEX charges and I think it would be a better option to switch to the new Blue Cash rewards AMEX card

My only concern is whether my credit rating [which is excellent] could be affected if I were to cancel the Gold card and switch to the Blue Cash Rewards type

The Amex general info agent on the phone could not answer this

Thanks in advance for the help

GI


sticf
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Postby sticf » Sun Jan 22, 2012 6:15 pm

Is the Gold card your oldest active card?
Are you on the border of Excellent and Good? (even then I would not worry to much)

Yeah you may take a hit, but over the next 10 years is keeping the card open worth the $750? (assuming no change) If you are doing everything right to keep your credit in good shape then you should not have a problem overcoming the closing of one account. IMO eventually your credit history is long enough that 10, 15 or 20 years means very little difference.

giosif
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Postby giosif » Sun Jan 22, 2012 7:19 pm

My oldest card,and still active,is MBNA MAster from 1987

This AMEX is probably at least 10 years old

As to my credit rating I think I am in the Excellent range [everything paid in full at end of the month ,cars paid,mortgage ok etc]

I am just trying to maximize the 'real cash return" in card usage

The card is used for both personal and business related expenses with average monthly charges of $ 3000 to 4000,sometimes higher depending on work related expenses

Thanks sticf for response

ooxs
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Postby ooxs » Sun Jan 22, 2012 10:17 pm

You will not even notice the different. You credit report will be updated to reflect the new account number and that is all to it. Your new account (age) will be backdated to the day you became a gold member and the only indicator will be one new hard pull/credit inquiry. Credit Score +/- 5 Points

sticf
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Postby sticf » Mon Jan 23, 2012 5:52 am

ooxs wrote:Your new account (age) will be backdated to the day you became a gold member and the only indicator will be one new hard pull/credit inquiry. Credit Score +/- 5 Points


Sorry forgot about Amex backdating. ooxs is right it will look more like a hard pull than a change in account age.

UPS Gregg
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Postby UPS Gregg » Mon Jan 23, 2012 9:03 am

ooxs wrote:You will not even notice the different. You credit report will be updated to reflect the new account number and that is all to it. Your new account (age) will be backdated to the day you became a gold member and the only indicator will be one new hard pull/credit inquiry. Credit Score +/- 5 Points


Does backdating apply with multiple Amex cards?
Current FICO: 805 (Equifax)

Current Cards:

*USAA Platinum MasterCard CL-$1,000.00
*USAA Signature Visa Card CL-$15,000.00
*USAA Rewards Amex CL-$15,000.00
*HSBC Best Buy Card CL-$3,300.00
*Amex Macy's CL-$8,000.00
*JPMorgan Chase Marriott Rewards Premier Visa Signature CL-$20,000.00

ooxs
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Postby ooxs » Mon Jan 23, 2012 11:32 am

Yep, as many card as you have.

Celestine
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Postby Celestine » Tue Jan 24, 2012 12:25 am

giosif wrote:I usually spend several thousands a year in AMEX charges and I think it would be a better option to switch to the new Blue Cash rewards AMEX card
GI


You do know that the AMEX Blue Cash Rewards is a credit card not similar to the Gold card that is a charge card. Credit cards and charge cards are two different beasts.

Credit cards have imposed credit limits. And you would be lucky enough to make lenders raise your credit limit or ask them to lower your APR.

If you don't plan to make a major purchase in the near future, then don't worry so much about your credit score/rating getting affected with the Gold card cancellation.

If you are using your Gold card for $3,000.00 to $4,000.00 or higher purchases each month, then I doubt a credit card is a good idea to replace your charge card. Either get a bank's business line of credit or continue to use the Gold card for those expenses.
"Nearly all men can handle adversity, but if you really want to test a man's character - give him power." - Abraham Lincoln

giosif
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Postby giosif » Tue Jan 24, 2012 10:11 am

Thanks to all responders

I am a little confused by Celestine's reply/advice

The reason for thinking about the Bluecard [or any other for that matter] is to try to get some more valuable rewards for the money I spend on purchases of any type

With the current Gold Amex I get "reward points" that I cannot really redeem for anything I am interested in,so I rather get a "cash reward" for the money I spend

I reitirate that I pay my monthly balance in full,so cash flow is not the problem [regarding a bank business line]

The Blue card interest was motivated by the offer of 2,3 and 6% cash returns on common daily or weekly expenses such as gas,groceries etc

GI

Celestine
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Postby Celestine » Wed Jan 25, 2012 12:30 am

giosif wrote:Thanks to all responders

I am a little confused by Celestine's reply/advice

The reason for thinking about the Bluecard [or any other for that matter] is to try to get some more valuable rewards for the money I spend on purchases of any type

With the current Gold Amex I get "reward points" that I cannot really redeem for anything I am interested in,so I rather get a "cash reward" for the money I spend

I reitirate that I pay my monthly balance in full,so cash flow is not the problem [regarding a bank business line]

The Blue card interest was motivated by the offer of 2,3 and 6% cash returns on common daily or weekly expenses such as gas,groceries etc

GI


Sorry for the confusion.

If you pay the monthly balance in full, then getting a credit card is not the problem.

But the main point I am trying to get across is that credit cards have credit limits.

Once you reached that credit limit, either you won't be able to use charge extra without those fees added to your balance or the additional charge will get rejected. And you told you are mixing personal and business expenses of $3,000.00 to $4,000.00 or higher purchases each month. So credit card is not for you provided your credit limit is lower than your total monthly purchases. But we won't know your credit limit if you are not going to apply for the Blue Cash. :ppp

Business-wise... avoid mixing personal expenses with business expenses.

If your main goal is for personal satisfaction, then get the Blue Cash for personal expenses.

If your main goal is for your business advantage, then apply for any of AMEX business credit cards.
"Nearly all men can handle adversity, but if you really want to test a man's character - give him power." - Abraham Lincoln



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