Reply
Established Member
velocity
Posts: 16
Registered: ‎05-18-2008
0

Amex CC help

[ Edited ]

Hope someone can help...  I just got approved for the Amex Gold Rewards card online with no pre-set spending limit. After reading those no pre-set spending limit cards would actually hurt my credit score,  in addition to all the bad things about Amex, I would like to cancel the card I just applied. My question is since I haven't received my credit card yet, would it harm my credit score if I close the card? I would also like to know if Amex has already reports my new card to my credit report yet?  

 

Or should I keep the card?  

 

Any advise would be appreciated! Thanks all for the help!

 

 

 

 

Message Edited by velocity on 06-13-2009 06:12 AM
Moderator Emerita
Community Leader
Epic Contributor
haulingthescoreup
Posts: 28,098
Registered: ‎04-01-2007
0

Re: Amex CC help

If you've been approved, it will appear on your reports for 10 years.

I wouldn't cancel it. AmEx charge cards aren't the same as the Visa Signature/ MC World credit cards, many of which don't report CL's. (My USAA MC World card does, though.) After a lot of debates here on the forums and not a few pm's from AmEx power-hitters, I think the current situation is that Equifax (EQ) and Experian (EX) do treat AmEx charge cards correctly, but TU98 does not. However, TU04 does, and it is now used more commonly than TU98. We are waiting with varying degrees of patience for TU to provide the '04 version here on myFICO. *drums fingers*

I was very happy with my Gold card. I only closed it after the first year because I was too cheap to pay the fee. (It was free the first year.) I opened a Blue to pick up the slack.

If you're getting double points the first year, it's a perfectly good card. After a while, you'll also start getting offers of triple points on their shopping mall, so keep an eye out for that as well.
* 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
Established Contributor
Watchmann
Posts: 985
Registered: ‎05-14-2008
0

Re: Amex CC help

[ Edited ]

No need to cancel the card, it is a very good card.  My Amex Gold Card is my oldest tradeline dating back to 1980 and I've used it all over the world to charge goods and services and to cash personal checks at AX Travel Service Offices.  I don't use it as much as I used to because I have other cards and I don't travel as much internationally, but I keep it in my wallet.  After you've gone through the effort to get it it doesn't make too much sense to me to cancel it now. 

 

RE their customer service and current practices, there are two sides to every coin, I've had nothing but excellent experience service from AMEX over the years.  Never had a serious problem with them and I've charged some mighty big one time purchases ($20,000 last December in St. Maarten) and other than having the merchant check my ID there was never any problem.  Have never had any isues with them cutting CL's on my other two AMEX accounts, a $25k Starwoods and a $37.9k Platinum Optima.  If you are a good credit risk and play it sane you'll have few problems.  The horror stories you read here are only half the story, we aren't privy to everyones personal situations, so when someone says their lines were cut for no good reason we cannot verify that there were not other issues in their files.

Message Edited by Watchmann on 06-13-2009 08:38 AM
Established Member
velocity
Posts: 16
Registered: ‎05-18-2008
0

Re: Amex CC help

Hi haulingthescoreup, thanks for your speedy reply and help in regards of my concern. One more question though, since EQ and Ex report Amex correctly, do I still need to work around with the limit by running up a high balance one month and paying it off ?

 

Thanks again haulingthescoreup ^^

 

Established Member
velocity
Posts: 16
Registered: ‎05-18-2008
0

Re: Amex CC help

Thanks for your advise too Watchmann, much appreciated ^^
Moderator Emerita
Community Leader
Epic Contributor
haulingthescoreup
Posts: 28,098
Registered: ‎04-01-2007
0

Re: Amex CC help


velocity wrote:

Hi haulingthescoreup, thanks for your speedy reply and help in regards of my concern. One more question though, since EQ and Ex report Amex correctly, do I still need to work around with the limit by running up a high balance one month and paying it off ?

 

Thanks again haulingthescoreup ^^

 



Do you plan on carrying a balance with American Express? If so, you should realize that it's a quick way to CC suicide with them. Even if they gave you a 0% APR, it's wise to never carry that over more than 3 months. The credit-extending department at AmEx doesn't seem to be on the same page with the credit-canceling department. :smileytongue:

The only time this not-reporting-limit has an effect on your scores is if you allow a balance to post. I pay off my AmEx balance in full 2 days before the next statement is due, so it always reports $0, unless something sneaks on.

Another maddening thing about AmEx is that they report the balance that is on your statement, BUT they don't send in the info until four weeks later. Effectively, this means that the reported balance is always nearly a month behind that of other CC's.

Example: my statement drops on the 13th of every month. (This is a nice feature of theirs, btw, and they will change it if you ask.) Let's say that I have a $100 balance on my June 13 statement today, but last month, I had $0. My credit reports will continue to show $0 until July 10 or thereabouts, when it will start showing $100. I will have paid off that $100 by the July 13 statement, so my actual balance will go back to being $0, but that $100 will continue to display on my reports until AmEx updates on August 10, sending it back to $0. (Then I have to wait for the CRA's to update, of course.)

This two-months-in-the-hole thing, along with American Express's allergy to carrying balances, makes it the prime target card for PIF'ing before the end of the billing cycle, IMO.
* 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
Regular Contributor
Max09
Posts: 199
Registered: ‎05-29-2008
0

Re: Amex CC help

there is no need to cancel the card. I have the same card. EX and EQ don't include it in the util. the only one that still does is TU98 which is the version offered on myfico. most lenders use TU04 model which does not include it in the util. if you worry about your utility just pay your balance 3 days  before statment closing date.


velocity wrote:

Hope someone can help...  I just got approved for the Amex Gold Rewards card online with no pre-set spending limit. After reading those no pre-set spending limit cards would actually hurt my credit score,  in addition to all the bad things about Amex, I would like to cancel the card I just applied. My question is since I haven't received my credit card yet, would it harm my credit score if I close the card? I would also like to know if Amex has already reports my new card to my credit report yet?  

 

Or should I keep the card?  

 

Any advise would be appreciated! Thanks all for the help!

 

 

 

 

Message Edited by velocity on 06-13-2009 06:12 A

myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
FICO Score - The Score that matters
Click to Verify - This site chose VeriSign SSL for secure e-commerce and confidential communications.
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+
}