Q: Can I downgrade my AmEx credit card and keep my number the same? Will another credit inquiry be done? If I downgrade near the beginning of my membership year will I get reimbursed for the annual fee I already paid?

A: There are several questions there so let’s go over them one at a time.

Will your number stay the same?

For the charge cards, I would say the odds are 50/50, depending on which card you currently have and which you want to go to. If you have a Platinum and want to downgrade to the Gold Card then you may be able to keep your number (I have heard from those who were able to, but also those who weren’t).

If you want to jump from a charge card to a no annual fee credit card (like the Gold to Blue Cash Everyday) then there’s a good chance your number will have to be changed, based on what forum members have reported.

Will there be another credit inquiry?

Assuming it’s a downgrade within the same class of cards (i.e. Green, Gold, Platinum) then it’s unlikely a hard pull credit inquiry will be made. However if you consider going from a Green Card to the AmEx Blue, there’s chance a credit inquiry may be required. Because remember a Green is a charge card (balance due in full) and a Blue is a credit card (where you can pay over time). The latter is a higher credit risk, so its understandable why American Express would want to verify your credit.

What if I downgrade after paying the annual fee?

If you downgrade after you’ve already paid the fee for the current year, usually you should be able to get it refunded at a prorated rate. For example, if you’re downgrading 3 months into your current year, then 9 months (75%) would be refunded. I can’t guarantee every situation will work this way but the prorated refund does appear to be a very common option.

Before you downgrade consider these 3 things

#1. Possible retention bonus for keeping your card
American Express is notorious for never waiving the annual fee so that is not an option. However you may be able to score a bonus for keeping your card – Membership Reward Points or a statement credit. To find out if you qualify, ask to be switched to the retention department and see what they can offer you. If you’re not a big spender, don’t be surprised if they don’t offer you anything.

#2. Understanding the Membership Rewards Points
If you have a card with Membership Rewards (i.e. Green/Gold/Platinum) then you will want to spend those first if you plan on downgrading to a card that doesn’t participate in MR. Why? Because if you have MR points on your account and you downgrade from Gold to Blue, the MR points will disappear from your account. In short, you need an open account that uses MR points in order to access them.

#3. Consider cancelling and then applying for a new AmEx
If your account number will be changing and no retention bonus is offered (or it’s not very good) then you may want to consider cancelling the card and then applying for the one you want, so you can get the signup bonus with it. From my experience the signup bonuses are more generous when you apply for the card versus downgrading/switching to it. For Example, the sponsored bonus currently available for the gold card is quite enticing, look at how many points you get, plus you won’t pay an annual fee for its first year.

Did you know Visa was originally created by Bank of America? So why do they now have an American Express card and is it any good?

In the past, Visa and MasterCard stipulated that their member banks were not allowed to issue other types of cards. For example, Citi was partnered with MasterCard so that was all they could issue. BofA used Visa and that’s why in the past, all of their debit and credit cards were Visa.

That all changed last decade. Due to antitrust lawsuits, the rules now say the biggest banks are required to offer cards from all of the big 3 payment networks (Visa, MasterCard, AmEx). This is why the Bank of America American Express credit card was launched a couple a years ago. As of 2011 they have 3 (one of which is the Virgin Atlantic card). For this review though I will only be talking about the other 2 which are far more popular… the Accelerated Rewards credit cards.

Before you apply make sure you understand the rewards

Aside from that Virgin Atlantic, there are two different versions. There’s the Bank of America Accelerated Cash Rewards American Express card, which as the name implies gives you cash back. Then there’s a similar version, the Accelerated Rewards, which gives points instead. Here’s a review of both reward programs:

Accelerated Cash Rewards AmEx – This is essentially a credit card which gives you 1.25% cash back on all purchases. You can redeem in increments of $50 for a statement credit, direct deposit into your BofA account, or a simple check. Being that there’s no annual fee and you have the ability to cash out at reasonable levels, this is the best BofA card if it’s namely cash rewards you are after.

Accelerated Rewards AmEx – This gives you 1.25 points per dollar spent. While that may sound similar to the card above, it’s actually very different. Why? Because this American Express card uses the BofA World Points. Unfortunately with this program, if you want to get a good value per point, you usually have to redeem a large chunk at once. For example if you want to redeem for a statement credit or partner gift card at a full 1 penny per point value, then you will typically have to redeem at least 25,000 points. Redeeming less usually gives you a lower point value.

Ironically, the application for this version seems to be more popular, yet its rewards aren’t as good. So why do people apply for it over the other? Well because of its color, many refer to it as the Bank of America American Express black card (and they like that). However it’s important to note that despite that it’s design features black, this card is no more and no less prestigious than the BofA Accelerated Cash Rewards card which is discussed above. Bottom line? Don’t apply for this thinking it’s a status symbol, because it definitely isn’t – this is a no annual fee card. If you want to impress people, try for the $450 AmEx Platinum Card instead.

A review of the included benefits

All credit cards which operate over the American Express network come with several useful benefits. This includes the BofA AmEx cards which have the following benefits:

• Car Rental Loss and Damage Insurance – You can read more about credit card rental coverage here.
• Arranging Roadside Assistance – Please do not confuse this benefit as being actual roadside assistance (which some premium cards like the AmEx Gold offer). Rather, the American Express Bank of America cards offer free arrangement of roadside assistance, but you will still have to pay for the cost of the actual roadside assistance yourself.
• Extended Warranty – More details about the Extended Warranty through AmEx can be found here.
• Travel Accident Insurance – Go here for a general overview of how credit card travel insurance usually works. As to the coverage details on these two particular cards, unfortunately BofA does not provide them on the website and after chatting with a rep for 20 minutes, he was not able to find them either. Unfortunately to find out the answer, I was told to apply for the credit card and wait for the benefits guide to arrive, which obviously is not the answer I wanted to hear.
• Retail Protection – On eligible purchases, this benefit offers protection against theft or accidental damage during the first 90 days following the date of purchase, subject to rules/restrictions.
• MyConcierge – This is a phone concierge service which is run by BofA, not AmEx.

Verdict?

As mentioned, I definitely feel the Bank of America Accelerated Cash Rewards AmEx is the best card between the two, due to the fact that you can redeem as little as $50 at a time and still get maximum point value. The 1.25% cash back across the board is 25% above most credit cards and that’s a great deal.

The only drawbacks I can think of with the Accelerated Cash Rewards card are:

(a) You don’t get higher cash back for other categories. Depending on your spending, you may be better off with a card that gives 1% on everything else and 2% to 5% on selected categories.
(b) The signup bonus is only $50

My suggestion? Before you apply, first compare it to these top 10 cash back credit cards.

If you’re an American Express cardmember, you probably already know about the Bonus Points Mall, which lets you earn extra rewards for your online shopping. Instead of having to login and check the offers constantly, wouldn’t it be nice to have them automatically displayed in search results on your browser? Well, that is exactly what the American Express inSite tool does.

How does it work?

It’s a browser plugin and any AmEx cardmember can download it for free. You can download inSite for all major browsers: Firefox, Internet Explorer, Chrome, and Safari. During Summer 2011 American Express offered a $10.00 promotional credit just for downloading and using inSite. To see if this offer or another is currently available, check the aforementioned link.

After you have installed the software/plugin, when you do a search on Google, Bing or Yahoo, you will see an AmEx icon next to sites which currently have offers available:

Also, if you visit a participating retailer website directly, the AmEx Insite plugin will show a box in the top-right corner to notify you there are offer(s) for that website:

You can still get these same deals without Insite, by logging into your American Express account and going to the AmEx Bonus Points Mall section. However the advantage with using Insite is that you won’t have to login to AmEx to get a deal. Instead, the deals are automatically fed to you while you are browsing the net, anytime you come across a participating site.

Are there any drawbacks?

The only drawback I can think of is for those who have computers which are living on the edge, so to speak (crashing and freezing all the time). When that’s the case, you may want to avoid adding new software and plugins that could slow down your system. However unlike normal software, please understand that inSite only runs while your browser is running, so it won’t have any effect when you’re not on the net. Conclusion? Even if your computer is old and slow, it shouldn’t pose a problem.

Do you have any experiences or reviews (either good or bad) about American Express Insite? If so, please share them in a comment below! You also may want to check out the American Express forum if you have questions about your card or are looking for a new one.

Q: What happened to the Optima credit card from American Express? I went to their website and can’t find it anywhere!

A: The Optima was AmEx’s very first credit card (versus their charge cards, which require payment in full each month). It was first launched in 1987 but beginning in July 2009, American Express stopped accepting new applications for it (the exception being the “Oasis” applicants, discussed below, who are still offered it). As of 2011 here are some caveats you need to know about it:

• It’s not a true Platinum Card: There are two classes – regular and platinum. Although the latter is technically called the American Express Optima Platinum, don’t confuse it with the AmEx Platinum Card which is a charge card. The Optima Platinum had no annual fee, versus the $450 fee for the Platinum Card. As you can expect, the differences in benefits between the two is like night and day.
• The rewards program: The Optima credit cards use Membership Rewards, which is a points-based program (the other AmEx charge cards also use it). It is a great program if you want to spend your points on travel, gift cards, etc. but when it comes to cash back, it’s not a good choice. Why? Because if you choose a cash or equivalent (like statement credit) the value you get is usually 50% less than choosing partner gift cards. This means if you use the Optima card for cash back, it’s like you’re only getting 1/2% rebate.
• The Optima Oasis is different: Still available, this program is for those who have burned bridges with AmEx in the past and are looking to make things right. After paying off an old debt in full, many ex-cardmembers would be invited to apply for the AmEx Optima Oasis card, which would have a credit limit up to half the amount of the charged-off balance. This program is a very targeted offer and not available to everyone. To the best of my knowledge, AmEx’s partner collection agencies (such as First Source Advantage and NCO) are the ones who are responsible for offering the Oasis program.
• Very few Optima accounts exist as of 2012: As mentioned the normal Optima card application was closed off in 2009 and since that time, many existing cardmembers have been converted to other AmEx cards. Long story short, the normal version of this credit card (not talking about the Oasis) is extinct and its probably only a matter of time before all accounts are switched to other American Express cards.

Best alternatives?

What made the Optima AmEx so attractive was that it was a no annual fee card that participated in Membership Rewards Program. As of today, all the cards that participate in this program involve an annual fee, so if you want it now you will have to pay. On the other hand, there are a number of other no annual fee cards that definitely beat the AmEx Optima Platinum anyday.

Some good current options with Membership Rewards:

Gold Card: A lot of benefits for a reasonable annual fee.
Platinum Card: This is the granddaddy, premier choice for a charge card. The $450 annual fee isn’t for everyone but if you travel a lot, it actually makes sense.

Great choices that have no annual fee:

Blue Cash: There are now two versions of this card and the cash rewards are hard to beat.
Blue Sky: For those that want a no annual fee travel rewards card with some extra perks.

American Express has really started to beef up the benefits for their Platinum and Centurion cardmembers. In spring of 2011 they expanded their airport lounge program by adding Priority Pass Select free of charge. I don’t know what’s better, that or the new $100 discount for the Global Entry program.

What is Global Entry?

In short, it’s a program run by the U.S. Customs and Border Protection (CBP) that essentially gives velvet rope treatment for qualified travelers. It allows you to skip the lines and go straight to a kiosk for entry into the US.

Currently the program is available to citizens and permanent residents of the United States, as well as Dutch citizens and Mexican nationals. Although Global Entry is geared towards frequent international travelers, anyone can apply regardless of how often (or not) they travel. As you can imagine, this program is specifically for low-risk travelers (translation: criminals need not apply).

How to apply?

There is an online application at GlobalEntry.gov and the cost is $100. If you pass the preliminary approval, you will be scheduled for an interview, where your photo will be taken and fingerprints scanned. Why fingerprints you ask? Well the kiosks that you will be using when re-entering the U.S. will require you to scan your fingerprints to confirm your identity. Your enrollment is good for five years.

How to get it for free?

If you are the primary accountholder of an American Express Platinum or Centurion, your $100 fee will be reimbursed as long as your charge it to your card. This perk along with the new $200 yearly fee reimbursement on an airline of your choice for checked bags, in-flight food, etc. have really upped the ante on the Platinum appeal. If you’re interested in learning more, I would suggest you check out this sponsored offer for CreditCardForum visitors: Learn more about the Platinum Card and take advantage of this special promotion