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03-28-2009 05:06 AM
Have had AMEX card since 1967 with about $50 annual fee. It's due for renewal soon and am thinking of dropping it since I haven't used it for anything in years and am concerned that if I tried to use it would be denied; back when I originally got it it was useful in Europe but with ATM's all over the place, not so much anymore.
It is my oldest card (41 years). Average age of accounts 16 years. Currently have high FICOs (EQ 800; TU 788; EX 807), utilization 4%, no baddies, no AA.
Will my FICO take a hit if I close it?
03-28-2009 05:27 AM
Welcome to the forum, JudyF!
Depends on how many other cards you have and when they were opened. Since there is a wide spread between oldest account and AAoA, this info is critical for receiving an accurate response.
For instance, if you currently have only 2 other cards, and they were opened in or after 2005, your AAoA would drop dramatically and lower your FICO's... a lot!
Please provide further info, but I'd eat the annual fee and keep that card open for both the age and the available credit it provides should the need arise in this economy.
03-28-2009 06:28 AM
On FICO report there are 17 cards:
1967 2 cards (AMEX in question; old AMEX closed at consumer request in 2000)
1969 1 card (Fia Csna [don't even know what this] is $0/20,300 so obviously don't use it)
1983 2 (HSBC-active PIF each month $0/$24,100; old HSBC closed at consumer request in 2000)
1998 3 cards (1 closed by credit grantor 1999 for lack of use; old mortgage; old home equity)
1999 2 cards (Discover-not used since 1999 $0/$11,000; Unv/City-have $2600/$25,000 @2.99 for life)
2000 1 card (Chase- $0/$30,300)
2001 2 cards (old mortgage; old mortgage)
2002 1 card (CapOne)
2004 2 cards current Mortgage refi and home equity
So I have 1 mortgage, 1 HELOC, and 4 cards (1983,1999,2000,2002) I use regularly to keep active. I thought things were supposed to drop off after 10 years but have several that are way beyond that.
I don't plan on applying for any new cards or line increase. My ARM is due to adjust in May 2009 (1 year LIBOR, 2.25% margin) and plan to sell house by mid-2010.
Given AMEX recent nasty moves, I hate to give them $50 just to keep an old account which I haven't used other than AF for 30 years.
03-28-2009 06:45 AM - edited 03-28-2009 06:51 AM
Close it, you won't feel a thing except the extra fifty bucks in your purse!
Enjoy the weekend!!
Edited for add'tl comment:
JudyF, this is my opinion only, you may want to wait for others on these boards to chime in over the next couple of days.
03-28-2009 10:30 AM
it won't affect your Average Age only in 10 years from now and guess what?
in 7 years down the road or whatever you can just open a new Amex account and will backdate to your original 1967 making it that old once again not count as new account, so therefore absolutely no affect on your Average Age.
pretty easy with Amex, make Amex work for you not you for them
03-28-2009 06:42 PM
03-28-2009 06:51 PM - edited 03-28-2009 06:54 PM
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