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AmEx closed my acct, how can I mitigate the damage?

Established Member

AmEx closed my acct, how can I mitigate the damage?

So just like many others on here, I was hit by AmEx out of the blue with a cancellation on my account.

 

They gave me the same ol' excuses about a credit bureau showing "recent" delinquencies (they're almost two years old now) and apparently that I don't pay enough monthly with regard to my balance.

 

Having read the thread that WhirledPeasPlease started, http://ficoforums.myfico.com/fico/board/message?board.id=creditcard&message.id=137612&query.id=10052... I see that I made the same mistake he made in thinking that paying more than the minimum was sufficient to make me seem "low-risk."

 

As upset as I am to lose the AmEx account, because I had a great 5+ year history with them, I want to keep my UTIL down and I need to get a new CL in place. Who is the best to go to in this economic climate? Should I be doing anything else to mitigate this damage from AmEx? How much of a hit can I expect from this?

31 REPLIES
Regular Contributor

Re: AmEx closed my acct, how can I mitigate the damage?

If your EQ is good hit up Alliant other than that just pay down your balances.

Starting Score: 8/2008 521
Current Score: 734
Highest Ever: 4/2009 759
Goal Score: 760+

Take the FICO Fitness Challenge
Super Contributor

Re: AmEx closed my acct, how can I mitigate the damage?

If you EQ is good, I would consider Nordstrom also. They are very generous and good to deal with.
Senior Contributor

Re: AmEx closed my acct, how can I mitigate the damage?

these 'antidote' apps were, in part, my response to amex CLD and to replace the lost CL with reliable lenders.  they've so far worked for me to great effect:

 

alliant

nordstrom

usaa

 

awesome lenders that i may not have pursued seriously if amex hadn't had a gotcha! moment on my Clear card acct.  in retrospect i'm grateful that amex sorta prompted me to look down yonder.  i'll hold on to them if they don't ultimately close my acct. but doubt i'll miss them all that much now if they do. 

 

i'd rather not be beholden to them at a time when imo they are unable to give proper consideration to my profile and history for whatever reason.

DCU EQ 5.0, Citi EQ 08 Bankcard, PenFed EX NG2
EX 08: AFCU, Amex, Chase, PSECU EX 98(?)
TU 08: Barclays, Discover
Established Contributor

Re: AmEx closed my acct, how can I mitigate the damage?


CrimsonSky wrote:

 I was hit by AmEx out of the blue with a cancellation on my account.

 

As upset as I am to lose the AmEx account, because I had a great 5+ year history with them, I want to keep my UTIL down and I need to get a new CL in place.

 

 Should I be doing anything else to mitigate this damage from AmEx? How much of a hit can I expect from this?


When your credit history improves sufficiently for Almighty Amex to issue you a card again in the future, you will most likely be able to obtain your original issue date. You have 10 years before your closed account will drop from your credit reports If you apply and get approved for a new card before ten years expire, you will still have one, possibly two, Amex cards in file with the original issue date. Smiley Wink

 

Any score hit that you take depends upon the shift in your overall utility in addition to the fact that a closed account with a balance is scored as (individually) maxed out.

 

The best thing to do to mitigate the damage is to pay down your balances as fast as possible. Possibly obtaining a fixed rate installment loan could be worth considering if you can qualify. What Amex did to you is only the beginning. It is going to get worse with all creditors. By July 2010 carrying revolving debt will cause severe pain for those who haven't gotten rid of it before then.

 

It is possible that you can still obtain a new card with a low introductory rate. If the "go to" ongoing rate is the same or lower than the closed Amex account, you could do a BT.

 

If an introductory rate is low but the go to rate is substantially higher than Amex, you could still do a BT if you can have the new card paid off before the intro rate period ends. Remember paying the minimum or "more than the minimum" is no longer a plan that is feasible in today's credit environment

 

Paying as much as possible as fast as possible is the best plan for financial success. The objective would be to be (credit card) debt free by July 2010..


Frequent Contributor

Re: AmEx closed my acct, how can I mitigate the damage?

Just apply for the Amex Delta card to replace the Blue. No hit for new account and an easy approval.
Established Member

Re: AmEx closed my acct, how can I mitigate the damage?


hobojon wrote:
Just apply for the Amex Delta card to replace the Blue. No hit for new account and an easy approval.

 

Why would I do that? I've been reading about Amex cancelling people's Delta cards too....
Established Member

Re: AmEx closed my acct, how can I mitigate the damage?


score_building wrote:

these 'antidote' apps were, in part, my response to amex CLD and to replace the lost CL with reliable lenders.  they've so far worked for me to great effect:

 

alliant

nordstrom

usaa

 

awesome lenders that i may not have pursued seriously if amex hadn't had a gotcha! moment on my Clear card acct.  in retrospect i'm grateful that amex sorta prompted me to look down yonder.  i'll hold on to them if they don't ultimately close my acct. but doubt i'll miss them all that much now if they do. 

 

i'd rather not be beholden to them at a time when imo they are unable to give proper consideration to my profile and history for whatever reason.


 

Checking out USAA and it seems like it's only for military or former military personnel?
Established Member

Re: AmEx closed my acct, how can I mitigate the damage?

CreditAble, how can I do a BT on an account that's closed? Smiley Indifferent
Established Member

Re: AmEx closed my acct, how can I mitigate the damage?


jahmal wrote:
If your EQ is good hit up Alliant other than that just pay down your balances.

My score on EQ is 680. Is that good enough?