Credit Cards

[angelnyc]

I was wondering if I should cancel my AMEX PRG? For the following reasons:

• Annual fee of 175
• I only travel once if most twice a year, but the round trip for each of those trips are cheap, only like 350.00 round trip.
• I already have an AMEX credit card with a generous limit.

Why I'm hesistating to cancel:

• I heard 10% of FICO score is diversified credit, does not having the charge card really impact that 10%  a lot?
• Am I missing a potential pro of keeping this card that my AMEX credit card cannot do for me

Would like to hear your opinions, but that annual fee of 175 doesn't seem to be worth it to me since I don't travel much and I only get 1MR pt for all other purchases.  Thanks!

[thom02099]

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angelnyc wrote:

I was wondering if I should cancel my AMEX PRG? For the following reasons:

• Annual fee of 175
• I only travel once if most twice a year, but the round trip for each of those trips are cheap, only like 350.00 round trip.
• I already have an AMEX credit card with a generous limit.

Why I'm hesistating to cancel:

• I heard 10% of FICO score is diversified credit, does not having the charge card really impact that 10%  a lot?
• Am I missing a potential pro of keeping this card that my AMEX credit card cannot do for me

Would like to hear your opinions, but that annual fee of 175 doesn't seem to be worth it to me since I don't travel much and I only get 1MR pt for all other purchases.  Thanks!

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Since the AF is high, one thing you could consider is perhaps a PC to the regular Gold or the Green, to reduce the amount of the AF.

What was your motivation to get this card rather than one of the above?  Were you planning to travel more than what's actually happened?   I considered applying for it too, but couldn't justify the AF versus the other cards that I have in my portfolio that could be used for travel. 

[angelnyc]

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thom02099 wrote:

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angelnyc wrote:

I was wondering if I should cancel my AMEX PRG? For the following reasons:

• Annual fee of 175
• I only travel once if most twice a year, but the round trip for each of those trips are cheap, only like 350.00 round trip.
• I already have an AMEX credit card with a generous limit.

Why I'm hesistating to cancel:

• I heard 10% of FICO score is diversified credit, does not having the charge card really impact that 10%  a lot?
• Am I missing a potential pro of keeping this card that my AMEX credit card cannot do for me

Would like to hear your opinions, but that annual fee of 175 doesn't seem to be worth it to me since I don't travel much and I only get 1MR pt for all other purchases.  Thanks!

---

Since the AF is high, one thing you could consider is perhaps a PC to the regular Gold or the Green, to reduce the amount of the AF.

What was your motivation to get this card rather than one of the above?  Were you planning to travel more than what's actually happened?   I considered applying for it too, but couldn't justify the AF versus the other cards that I have in my portfolio that could be used for travel. 

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That reason was really to get in with AMEX, but now that I have an AMEX credit card, due to my aforementioned traveling habits, I'm not sure if having any of the AMEX charge cards are worth it due to the Annual Fees.  Also I'm not planning on traveling more then I do now.

[Walt_K]

You should probably cancel.  This card is great if you spend a lot on airfare and/or can spend more than $30K/year on the card.  Otherwise, it's really not worth it.

[angelnyc]

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Walt_K wrote:

You should probably cancel.  This card is great if you spend a lot on airfare and/or can spend more than $30K/year on the card.  Otherwise, it's really not worth it.

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Thanks Walt I'm feeling the same way, I guess if a few more of our "Credit Gurus" on here concur with this opinion, I probably will.

[FutureBillionaire]

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angelnyc wrote:

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Walt_K wrote:

You should probably cancel.  This card is great if you spend a lot on airfare and/or can spend more than $30K/year on the card.  Otherwise, it's really not worth it.

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Thanks Walt I'm feeling the same way, I guess if a few more of our "Credit Gurus" on here concur with this opinion, I probably will.

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I'm in the same boat.  If we have two Amex cards, I think that we don't lose the AAoA benefit.  I've never used the travel benefits.   I use other cards to pay for my flights.  I just hate cancelling cards. 

[Revelate]

A charge card is counted as a revolving account.  It doesn't affect mix of credit any more than a standard credit (or store) card would.

I agree with Walt's opinion completely; there was a good writeup on the rewards and the required expenditure to make the AF worthwhile a few months ago (which I now despair of finding unfortunately through our search interface), and unless you ran roughly 2K/mo through the card, or more as Walt intimates, it just wasn't worth it.

Unless the AF is trivial to you (and it wouldn't be for me at least) I'd recommend you close it in this case.

[FutureBillionaire]

And there we have it.

[angelnyc]

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Revelate wrote:

A charge card is counted as a revolving account.  It doesn't affect mix of credit any more than a standard credit (or store) card would.

I agree with Walt's opinion completely; there was a good writeup on the rewards and the required expenditure to make the AF worthwhile a few months ago (which I now despair of finding unfortunately through our search interface), and unless you ran roughly 2K/mo through the card, or more as Walt intimates, it just wasn't worth it.

Unless the AF is trivial to you (and it wouldn't be for me at least) I'd recommend you close it in this case.

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Thanks Revelate, as always you come through with  great advice.  It's good to know that the charge card will not have an affect on diversity of my credit. I do not use 2K/mo with the card so I guess I cash in on the points I have on it now and cancel in the following month or two.

[ceemee2203]

I'd try getting the annual fee removed before cancelling the card, if you've been a good customer, they might work with you.