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Amex - Chopped!

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HiLine
Blogger

Re: Amex - Chopped!

You're probably at a stage in your life where you don't expect to take out a loan in the foreseeable future. As such, it totally makes sense to slash out credit cards that you find yourself never using. I know that if I didn't have to build my credit history and made enough money to not find too much value in credit card rewards I would get rid of the majority of my CC portfolio. There are more important things to focus on in life. Smiley Happy

Message 21 of 39
myjourney
Super Contributor

Re: Amex - Chopped!

You did some serious pruning todaySmiley Surprised

Before you app think...
Have you done your research of the CC?
Does it fit your spending?
Do you have a plan for the bonus w/o going into debt?
Can you afford the AF?
Do you know the cards benefits? Is it worth the HP?
Message 22 of 39
Ron1
Super Contributor

Re: Amex - Chopped!

Ray,

 

Sorry to hear it.  I would have kept BCE if I were you. It doesn't cost you to keep it open.

 

 

Ron.

Message 23 of 39
longtimelurker
Epic Contributor

Re: Amex - Chopped!


@Ron1 wrote:

Ray,

 

Sorry to hear it.  I would have kept BCE if I were you. It doesn't cost you to keep it open.

 

 

Ron.


But, depending where you are in your credit history, it doesn't cost much to close either....  If you don't need the limit, or if you are getting "too much credit" denials, closing is the way to go if the card isn't useful.

Message 24 of 39
Ron1
Super Contributor

Re: Amex - Chopped!

You might get not enough credit history if you close too many accounts. Some creditors may close your account if your score drop too much within short period of time.

Ron.
Message 25 of 39
longtimelurker
Epic Contributor

Re: Amex - Chopped!


@Ron1 wrote:
You might get not enough credit history if you close too many accounts. Some creditors may close your account if your score drop too much within short period of time.

Ron.

Closing accounts doesn't immediately impact credit history, closed accounts will fall off about 10 years from now.  Yes, that might cause a dip then (although your credit and scoring systems might be very different then).  Keeping them open could allow some identify theft issues that take ages to resolve.  Or neither could occur.  

 

But closing doesn't impact credit history for a long time.

Message 26 of 39
Awesomely
Regular Contributor

Re: Amex - Chopped!

American Express is a very weird company, I used to think they were tops but after they cut $900 off my limit of $2,000 of a card after I left a $1,000 balance hang for two months on a revolver card it just shows they are a paranoid company. My whole credit profile is clean so them doing that is just ridiculous, they might as well not even offer credit cards if you can't keep a balance.

Message 27 of 39
Open123
Super Contributor

Re: Amex - Chopped!


@longtimelurker wrote:

Closing accounts doesn't immediately impact credit history, closed accounts will fall off about 10 years from now.  Yes, that might cause a dip then (although your credit and scoring systems might be very different then).  Keeping them open could allow some identify theft issues that take ages to resolve.  Or neither could occur.  

 

But closing doesn't impact credit history for a long time.


Right, and in some case, such as mine with all backdated Amex cards as my oldest TLs, all things being equal, my AAOA can only increase when closed accounts do fall off 10 years from now.

Message 28 of 39
RockinRay
Valued Contributor

Re: Amex - Chopped!

I wanted to follow up on this thread since I did contact Amex again yesterday to double check moving the CL's to the Costco card.

 

1. My Costco card needs to be at least 60 days old, and it will be the end of next week. It is a new account.

2. They gave me an 800 number to call for the BCE transfer, they will reallocate the entire line to the Costco card once it is 60 days old, $24,100.

3. They will also reallocate the Delta Gold CL on 08/17/2013 as that card needs to be 13 months old. That line is $5k.

 

So, it does appear that I can in fact reallocate everything to the Costco card and I appreciate the recomendation to reach back out to them to see if this can be done! I will just wait until the end of August and give them a call at that time and get it all done. Then I will have the one card, backdated to 1979, and a CL of $34,100.

 

I wil be happy with that!  Smiley Happy

Ray

** Every Card has a Job, and Every Card does its Job **
Message 29 of 39
RockinRay
Valued Contributor

Re: Amex - Chopped!


@HiLine wrote:

You're probably at a stage in your life where you don't expect to take out a loan in the foreseeable future. As such, it totally makes sense to slash out credit cards that you find yourself never using. I know that if I didn't have to build my credit history and made enough money to not find too much value in credit card rewards I would get rid of the majority of my CC portfolio. There are more important things to focus on in life. Smiley Happy


You are correct! I am to the point in life where I want things to be simple. To me, it does no make sense to have 25 cards and $200k plus in available credit. But rather, prune back and use what porvides me with the best reward structure and value. 5 or 6 cards is really all I need.  Smiley Happy

Ray

** Every Card has a Job, and Every Card does its Job **
Message 30 of 39
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