Changing from Zync to PRG

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stemplar80
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Changing from Zync to PRG

Postby stemplar80 » Tue Aug 28, 2012 11:36 pm

I have an Amex Zync, and recently acquired an Amex PRG, too. Seeing as how I don't really need the Amex Zync, what should I do with it? Cancel it, or will that hurt my credit?


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Postby Money card » Sat Sep 01, 2012 10:33 pm

yes your score will go down if you cancel your zync, but since you will be paying your premiere gold in full your score will go up.
so do you want to have 2 cards with fees? or 1 card with a fee?

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stemplar80
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Postby stemplar80 » Tue Sep 04, 2012 5:33 pm

Naturally, I'd like one card with an annual fee, not two cards. But how do the credit bureaus treat charge cards?

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Postby Crashem » Wed Sep 05, 2012 9:51 am

Money card wrote:yes your score will go down if you cancel your zync, but since you will be paying your premiere gold in full your score will go up.
so do you want to have 2 cards with fees? or 1 card with a fee?


Money card is wrong. There is no immediate effect from closing zync. Closed accounts wil stay on credit report for at least 10 years and be counted in calculations. The one way closed cards do effect credit score is reduced total credit available and therefore utilization can be affected. However since zync is charge card, utilization is not effected. On the other hand, the new Amex prg will affect your credit score, most likely negatively.
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Postby Money card » Wed Sep 05, 2012 10:48 pm

all credit scores go down when you close a card. hasn't anybody ever told you when you close out a credit card it huurts your score.

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Postby 432521 » Wed Sep 05, 2012 11:18 pm

Money card wrote:all credit scores go down when you close a card. hasn't anybody ever told you when you close out a credit card it huurts your score.


I believe they say this because it effects your utilization, but it does not hurt your AAOA for at least 10 years since it stays on their. But since the Zync is a charge card it would not affect the utilization anyways since it doesn't report a CL.

Now if he was closing something like a Chase Freedom or any other Credit Card and not a charge card it would hurt him because it will decrease his total credit limit and thus hurting your utilization if that limit is huge and causes your utilization to jump from 7% to like 20% or something.

Most people say to never close a credit card because it hurts your score probably do not have a charge card and just regular credit cards with reporting revolving limits.
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Postby Money card » Thu Sep 06, 2012 8:25 pm

432521 my cousin inlaw use to work for American express she told me a couple of times it's best not to close out any credit cards
the premium green, gold , or the platinum the lending or revolvers like optima , Blue , any bank visa, Discover ect.

I certainly understand your point, however the Zync does report to the credit bureaus like equafax and the other 2 , since it reports
0 because with these cards are pay in full and people use the cards for different amounts over the course of the year, as you metioned
a revolver has a minimum payment plus a credit limit, but since the zync isn't a debit card it goes on there credit report
like the Green goes on my credit report, shouldn't somebody's score come down a little if they close a premium card like the Zync , green , gold ect?

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Postby SG7 » Thu Sep 06, 2012 9:41 pm

Money card wrote:432521 my cousin inlaw use to work for American express she told me a couple of times it's best not to close out any credit cards
the premium green, gold , or the platinum the lending or revolvers like optima , Blue , any bank visa, Discover ect.

I certainly understand your point, however the Zync does report to the credit bureaus like equafax and the other 2 , since it reports
0 because with these cards are pay in full and people use the cards for different amounts over the course of the year, as you metioned
a revolver has a minimum payment plus a credit limit, but since the zync isn't a debit card it goes on there credit report
like the Green goes on my credit report, shouldn't somebody's score come down a little if they close a premium card like the Zync , green , gold ect?


It's not about WHETHER an account is reported to the CRAs, but rather WHAT is reported. It's true that the general recommendation is to not cancel a credit card. This is because of the negative effect it may have on the utilization component of your score. For example, if you have two credit cards, each with a $10,000 limit, and you allow a $5,000 balance to report on one of those cards, your overall utilization is 25%. If you cancel the unused card, your utilization jumps up to 50%, and your score takes a hit.

Charge cards (what you for whatever reason referred to as "premium" cards) are different. Because a charge card has no preset spending limit, it does not report a credit limit to the CRAs. Since a charge card does not report a credit limit, the utilization component of your score remains unaffected if you cancel the account.

In addition, there is no immediate negative effect on the average age of accounts component of your score because closed accounts will be on your credit reports for years after they were closed.

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Postby SignHere » Fri Sep 07, 2012 12:16 am

You are safe to close the card without it having an impact on your credit score because charge products do not have a revolving credit line that affects your utilization. Your score may be affected in 10 years when the account drops off, but by then you will have established other credit accounts that will make the drop almost irrelevant.

Things that affect fico score:
Payment history (35%) - as long as you pay on time you are good
Amounts owed (30%) - because Zync is a charge - you never "owe" so it isn't factored
Length of credit history (15%) - this is where you might be affected.... in 10 years
Types of credit in use (10%) - car loans, mortgage, revolving credit
New credit (10%) - Risk dependent on new accounts

As you can see, if you have no reason to keep it open, close it.

As for how it reports it varies, I've seen it report as Installment, Revolving, or Other depending on the CR agency. My Zync used to report as Installment, but when I updated my equifax product, it now reports as revolving. But, it still hasnt had any affect on my score.
Amex PR Gold - NPSL (Daily) [8/2012]
Amex Zync - NPSL (Ex-Daily) [10/2010]
Amex BCE - 19.2k [8/2012]
Chase Freedom Visa - 5k [8/2012]
PSECU Visa/PSL - 20k [9/2012]

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Postby stemplar80 » Thu Oct 25, 2012 8:39 am

Thank you one and all for your responses. It seems that closing Zync would be the safe thing to do; however, seeing as how the annual fee is only $25, maybe I should keep it open. Any final thoughts?



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