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


CrimsonSky wrote:


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....

I agree; I don't think that I'd go that route.

What's your current balance, and what was your CL?

I'd do two things:

First, get with BofA or one of the generous CU's, like Alliant as mentioned, as BT your balance over. Then pay it off FAST. Do realize that BofA generally does not cap its BT fee --it's a straight 3%, so if you have $1K to move over, it's only $30, but if you have $10K, it's $300. It will be added to the amount that you BT over. And if you do any BT's or carry other balances in the future, make sure that you have cash in the bank to PIF them immediately if necessary.

Second, even though historically AmEx has given the original opening date to new accounts occurring with no ongoing accounts (hope that makes sense), I don't know that I'd rely on that. I'd get a Green card in order to stay a current cardholder with them. Then, when the economy starts to recover, and their meds start finally working, you can re-apply for a revolving card if you want. But these days, I would worry that if I had an account that was closed, and I didn't open a new one right away, and in 3 years or 5 years or whatever I got with them again, they might no longer give you that old opening date. Just sort of a general paranoia.
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
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CrimsonSky
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Re: AmEx closed my acct, how can I mitigate the damage?

Just to be clear, the reason I'm worried about this is because besides my AmEx account, I only have one other revolving credit account which is a JB Robinson's jeweler's acct. The JB Robinson account has no balance and has a 2K limit on it.

 

My AmEx blue cash had a $2300 CL (after being reduced from my previous 5k CL) and it had a $600 balance on it. So now that my AmEx is gone, I only have JB Robinson and I need something stat, since my wife and I were looking to buy a home in the next few months.....

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


CrimsonSky wrote:

Just to be clear, the reason I'm worried about this is because besides my AmEx account, I only have one other revolving credit account which is a JB Robinson's jeweler's acct. The JB Robinson account has no balance and has a 2K limit on it.

 

My AmEx blue cash had a $2300 CL (after being reduced from my previous 5k CL) and it had a $600 balance on it. So now that my AmEx is gone, I only have JB Robinson and I need something stat, since my wife and I were looking to buy a home in the next few months.....



Are you working with a lender yet? The traditional wisdom is no new accounts within the 6 months leading up to a mortgage app, although Heaven knows, we're not living in traditional times.

I'd really like to first have the opinion of a lender as to which is worse --having only one open revolving account and maybe a Green card (won't show as new on your reports!) vs having two revolving accounts, one of which would be very new.

I honestly don't know if AmEx is going to give you another revolving account right away. :smileysad: --whereas they might agree to a Green, especially since they could collect a fee from you.
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
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CrimsonSky
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Re: AmEx closed my acct, how can I mitigate the damage?


haulingthescoreup wrote:
Are you working with a lender yet? The traditional wisdom is no new accounts within the 6 months leading up to a mortgage app, although Heaven knows, we're not living in traditional times.

I'd really like to first have the opinion of a lender as to which is worse --having only one open revolving account and maybe a Green card (won't show as new on your reports!) vs having two revolving accounts, one of which would be very new.

I honestly don't know if AmEx is going to give you another revolving account right away. :smileysad: --whereas they might agree to a Green, especially since they could collect a fee from you.

Nope. Not working with a lender yet. I've had discussions with mortgage brokers and hope to get pre-qualified this month.

 

I'd love to know if a new account is worse as well! Otherwise I'll pay AmEx and not bother.

 

I have installment loans on my credit history, an auto loan and student loans, in good standing, so maybe that'll keep my score up?

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

Your score will remain OK, if you pay off the balance and continue to keep the remaining card under control. That would remove the AmEx from influencing your util. ($0 balance / $0 CL = 0% util.)

Clean history on the installment stuff should help.

You might try posting on the Mortgage board, asking if only one open revolving account in good status is enough.
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
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CrimsonSky
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Re: AmEx closed my acct, how can I mitigate the damage?


score_building wrote:

 


CrimsonSky wrote:

 

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

they recently opened up some of their offerings, incl. checking, savings and cc to non military. doesn't appear to be advertised heavily in some areas.  you ARE eligible as non military for at least the 3 aforementioned types of accounts at this time (over the years they've gone back and forth on eligibility so if you're interested now is a good time to jump in) non military may still be barred from certain other products as non military like their insurance accts. i sent a private msg with more info.

 

 



 

 

 

 

 


Thanks for the info.

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


CrimsonSky wrote:

 

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

they recently opened up some of their offerings, incl. checking, savings and cc to non military. doesn't appear to be advertised heavily in some areas, or at all?  if nothing has changed since i applied earlier this year-you ARE eligible as non military for at least the 3 aforementioned types of accounts at this time (over the years they've gone back and forth on eligibility so if you're interested now may be a good time to jump in) non military may still be barred from certain other products like their insurance accts. i sent a private msg with more info.

FICOS:
06/13 EX 765 (PSECU) EQ 771 (DCU) TU 779 (Barclays)
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score_building
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Re: AmEx closed my acct, how can I mitigate the damage?

[ Edited ]

haulingthescoreup wrote:

CrimsonSky wrote:


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....

I agree; I don't think that I'd go that route.

What's your current balance, and what was your CL?

I'd do two things:

First, get with BofA or one of the generous CU's, like Alliant as mentioned, as BT your balance over. Then pay it off FAST. Do realize that BofA generally does not cap its BT fee --it's a straight 3%, so if you have $1K to move over, it's only $30, but if you have $10K, it's $300. It will be added to the amount that you BT over. And if you do any BT's or carry other balances in the future, make sure that you have cash in the bank to PIF them immediately if necessary.

Second, even though historically AmEx has given the original opening date to new accounts occurring with no ongoing accounts (hope that makes sense), I don't know that I'd rely on that. I'd get a Green card in order to stay a current cardholder with them. Then, when the economy starts to recover, and their meds start finally working, you can re-apply for a revolving card if you want. But these days, I would worry that if I had an account that was closed, and I didn't open a new one right away, and in 3 years or 5 years or whatever I got with them again, they might no longer give you that old opening date. Just sort of a general paranoia.

i've been through the back dating process on my two current amex revolvers and there could be a policy change but i sincerely doubt you have to worry too much about reopening an amex acct right away.  at some point in the near future, sure- but  let them hold their horses for a minute even. 

 

you can reapp a green when you are ready down the road, or perhaps a little further down, a revolver...  but consider they just shut you down and while WhirledPeasPlease is a notable exception they could easily deny you for a green if you reapp right away and even if they don't deny it wouldn't hurt to take a breather from their toxins imho. 

 

not saying close the door entirely but i find it isn't necessarily helpful to buy into their false ideology about my risk level or even lose my cool when they try to play me (CLD, AA, closure) esp. since i am lucky enough to have other excellent options as do the majority of their members.  i wouldn't be surprised if ultimately a backlash came up and bit them harder than they're predictive abilities can currently detect.

Message Edited by score_building on 04-05-2009 10:03 AM
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Re: AmEx closed my acct, how can I mitigate the damage?

[ Edited ]

CrimsonSky wrote:
CreditAble, how can I do a BT on an account that's closed? :smileyindifferent:

 

A closed account is still a tradeline with a balance.

I believe that you would just transfer the balance the same way that you would if the account was open.

 

The other way to do it would be to apply for a 0% BT card from Chase. Once approved Chase will send you a BT convenience check with the "Welcome Package" that accompanies the new credit card. The BT check is treated as a BT not a cash advance. Deposit the BT check into your checking account and write a check to pay off Amex. Alternately you could just make the check out directly to Amex to pay off the balance on the closed account. I prefer the first method because it somewhat hides the BT activity from Amex and other creditors. It would appear more like you paid off Amex with your own funds.

 

Also If you deposited a BT check into your checking account, you only pay the (hopefully caped) BT fee. If the whole amount that you borrow from Chase exceeds the balance of the Amex account you can pay back the unused funds to reduce your utilization and show a history of a higher "most owed" or "high balance" with Chase. 

 

I hope that you are able to qualify for a decent BT deal from Chase or others. 

 

Chase may or may not approve with a 680 credit score.

 

This concludes my response to your specific question

about transferring a balance to a closed account.

 


 

 

 

Responding to your additional info in other posts

I would try to do the following if possible.

 

Your score might jump up substantially after PIFing Amex if you have the funds to PIF right now. If you intend to obtain a mortgage soon I assume that you do have some money saved. After Piffing Amex you could reevaluate your need for cash and apply for a Chase card or not at that time.

 

I personally would pay the balance off from savings as you have discussed with others. Once paid off your score would improve and you would stand a better chance of obtaining a Chase card. You could use the BT check if you absolutely need more cash to  buy the house.

 

 You could also PIF Amex from savings and wait until the payment posts to your credit reports. Depending upon the resulting score you can app for Chase at that time or wait until after you obtain your mortgage. If you app before the mortgage, you don't have to pull the trigger on a Welcome Package BT check for 90 days. That would show 0% utility on the Chase card while applying for the Mortgage. You would pull the trigger on the Chase BT as soon as you close on the house providing little chance for Chase to CLD after your mortgage hits your credit files.

 

If your score is OK after PIFing Amex, it is probably a wise move to not app for anything until after you obtain the mortgage. Chase and the BT check could be obtained after your mortgage. Of course you would only take a BT check offer if you get approved for a 0%, or you are left financially strapped after obtaining the mortgage.   

 

 

 Best wishes. 


Message Edited by CreditAble on 04-05-2009 03:16 PM
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CrimsonSky
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Re: AmEx closed my acct, how can I mitigate the damage?

Thanks, CreditAble.


PIF is definitely my #1 plan. I plan on calling AmEx's credit department tomorrow to see if there's anyway to reinstate my account and THEN PIF. Wish me luck.


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