Closing account?

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rjl
 
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Closing account?

Postby rjl » Wed Apr 03, 2013 3:46 pm

Hi,

I was wondering you guys opinion on the following situation.

I'm authorized user with manager privileges on a gold 'rewards plus' card. We used to charge a fairly large amount of travel expenses but haven't used the card at all in the past year. Now the $150 annual fee just came up.

This is my oldest card listed at 2000, the primary card holder is listed as 1993.

There are also unused membership rewards points on the account.

Ideally I'd like to keep the account history, and the points, while avoiding the fee.

I had a couple questions.

Can my 2000 account be backdated to 1993 of the primary? Would that impact credit score in a substantial way or not really?

I've read about doing a 'product change' within Amex, to a different card, requiring only a soft pull with no credit score impact. Going this route, can I keep the account history? The MR points? Is there a no-annual-fee card that would transfer MR points?

If I have to use the MR points right away or lose them, are there any non-travel deals going on that you're aware of?

Any advice would be very appreciated. Thanks!


Robrus1
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Postby Robrus1 » Thu Apr 04, 2013 3:45 am

It cannot be backdated to 1993. It would not impact your credit score, just your average age of accounts. You can do a product change to another charge card with only a soft pull, but they all have annual fees. Option 1 is to downgrade to the Amex Green and pay less of an annual fee. Option 2 would be to apply for a revolver such as Amex Blue, which participates in the MR program, most likely at the expense of a hard pull. If approved, then cancel the Gold Card. You'll get to keep the account history, or backdating (when talking to Amex, refer to it as your "member since" date, and the MR points.
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SparkyinCA
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Postby SparkyinCA » Thu Apr 04, 2013 9:52 am

Robrus1 wrote:It cannot be backdated to 1993. It would not impact your credit score, just your average age of accounts. You can do a product change to another charge card with only a soft pull, but they all have annual fees. Option 1 is to downgrade to the Amex Green and pay less of an annual fee. Option 2 would be to apply for a revolver such as Amex Blue, which participates in the MR program, most likely at the expense of a hard pull. If approved, then cancel the Gold Card. You'll get to keep the account history, or backdating (when talking to Amex, refer to it as your "member since" date, and the MR points.


Sorry, but your statement is incorrect regarding AAofA (the rest I agree with). Adding 7 more years of age would most likely improve someone's FICO scores. In this case, Amex will not backdate an AU to original members since date, so it won't make a difference in this case, but FICO scores are definitely impacted by how long your AAofA is.

rjl
 
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Joined: Wed Apr 03, 2013 3:17 pm
Location: NY

Postby rjl » Thu Apr 04, 2013 1:12 pm

Thanks for the replies.

I had a feeling backdating to the primary's date was a long shot.

So soft pull product changes are only from one charge card to another? and there aren't any no annual fee charge cards.

I guess it would have to be the Blue credit card then, and that would be a hard pull for sure?

Is this something I should do over the phone after explaining the MR transfer and account closure, or do I go apply cold from their webpage for the Blue card and then call for the MR and closure. Are Blue cards approved instantly? I believe I just have a week or so before this account needs to be paid or closed.

Are there any disadvantages to closing a largely dormant gold account that have not been mentioned?

Thanks again for the advice!

Robrus1
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Postby Robrus1 » Thu Apr 04, 2013 2:24 pm

SparkyinCA wrote:Sorry, but your statement is incorrect regarding AAofA (the rest I agree with). Adding 7 more years of age would most likely improve someone's FICO scores. In this case, Amex will not backdate an AU to original members since date, so it won't make a difference in this case, but FICO scores are definitely impacted by how long your AAofA is.


Thanks for catching that. What I meant was it would not impact the credit score unless Amex reports the AU to the credit bureaus, same with the AAoA. I'm not sure if they even report AUs independently.
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Robrus1
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Postby Robrus1 » Thu Apr 04, 2013 9:42 pm

rjl wrote:Thanks for the replies.

I had a feeling backdating to the primary's date was a long shot.

So soft pull product changes are only from one charge card to another? and there aren't any no annual fee charge cards.

I guess it would have to be the Blue credit card then, and that would be a hard pull for sure?

Is this something I should do over the phone after explaining the MR transfer and account closure, or do I go apply cold from their webpage for the Blue card and then call for the MR and closure. Are Blue cards approved instantly? I believe I just have a week or so before this account needs to be paid or closed.

Are there any disadvantages to closing a largely dormant gold account that have not been mentioned?

Thanks again for the advice!


It will be a hard pull. If it were me, I would apply online for Blue, which can be instantly approved. I would wait 24-48 hours after approval, to let your online Amex accounts update, and then I would call and cancel the charge card.

"So soft pull product changes are only from one charge card to another? and there aren't any no annual fee charge cards."
Correct on both parts.

Are there any disavantages to closing a gold card that's not being used? Nope. You won't lose backdating if approved for Blue, which is really all you'd have to lose. Since charge cards are 0% interest since you have to pay in full every month, they make their money by charging annual fees. Hope this helps. Also if while apping for Blue you don't get instant approval and you get a message saying your application needs to be reviewed, call and check the status of your app since time is of the essence and you only have about a week. If you don't call it could take longer to be notified.
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PlatinumAMEX94
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Postby PlatinumAMEX94 » Mon Apr 08, 2013 12:27 am

rjl wrote:I've read about doing a 'product change' within Amex, to a different card, requiring only a soft pull with no credit score impact. Going this route, can I keep the account history? The MR points? Is there a no-annual-fee card that would transfer MR points?

If I have to use the MR points right away or lose them, are there any non-travel deals going on that you're aware of?


So you want to take MR points which are not yours, skip out on the annual fee and ride on someone else's credit history as your own. Wow. It takes all types.

No. No. and No.

Business MR points are not going to transfer to your no annual fee blue personal account. You're not the primary, you are AU with manager rights. American Express is a lot smarter than you. You think you can cheat the system but you can't. Good luck and prove me wrong.
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