Evaluate my recent decisions (closing AMEX and FIDELITY)

[RemyWinchester]

Hi,

In the past year I have gone on a bit of a tear, applying for and trying out all sorts of new cards and accounts.  I am leaving the country soon and have come to the realization that I simply have too many accounts, cards, and way too many sites to log in.  It has been quite a hassle checking everything!

Recently, in the name of simplicity and trying to make things easier on my financial life, I have done the following.

Closed:

AMEX Gold Delta Skymiles

Opened OCT/2011

CL: $5,000

Fidelity AMEX

Opened 12/2011 (i know... i know...)

CL: $7500

After closing these two cards, I am now left with 4 cards total:

AMEX BCE:

Opened 05/2011

CL: $11,000

PENFED Visa Platinum Cash Rewards:

Opened:

05/2011

CL: $7,000

USAA World Mastercard

Opened:

01/2009 (oldest card)

CL: $14,000

USAA Platinum Visa

Opened:

10/2011

CL: $1000

After closing my two cards, I called USAA and asked for my first ever CLI from them.  My CLI on my MC doubled from $7K to $14K.  I did this because I closed two accounts totaling $12.5K, so I thought I could compensate with a CLI on my USAA cards.

I use the AMEX BCE for most everything.  Penfed for gas, and my USAA MC for insurance and my amex backup.  My USAA Visa is sock drawered for emergency (losing wallet etc) and is hardly used.  It is new, so not eligible for a CLI until 6 months.

Questions:

1) Will AMEX respond negatively to my closing of my Delta skymiles card?  My BCE is my primary card, paid in full every month. 

2) I realize my scores will drop, when can I expect them to return to normal.  Last time I checked, my experian score was 744.  I'm guessing I'm going to take a real hit closing two newer accounts, and getting a hard or soft pull from USAA in doubling my CL with them.

Thanks all. 

[dalebb]

get a CLI on the BCE and i think ul b just fine

[pizzadude]

Closing credit cards won't lower your credit score, unless your %util increases as a result of losing the CLs.   The card will remain as positive TLs on your CRs for the next 10 years.   You have already taken the hit to your AAoA when you opened them, so there shouldn't be any negative effect.

I don't think that AMEX will care that you closed your account after just a few months, they won't do anything IMO.

[aftermath]

You shoudl have atleast tried to combine the credit lines from your Delta to the BCE before you closed it.

[RockinRay]

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@dalebb wrote:

get a CLI on the BCE and i think ul b just fine

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+1 -

Ray

[ArisGreek]

AMEX doesn't do credit line reallocations anymore. I asked to do it on SPG to JB and vice versa and they said they can't do them anymore.

I don't know if that's true for everyone but she seemed pretty accurate.

[Odiseous]

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@ArisGreek wrote:

AMEX doesn't do credit line reallocations anymore. I asked to do it on SPG to JB and vice versa and they said they can't do them anymore.

I don't know if that's true for everyone but she seemed pretty accurate.

---

I have a feeling the person you talked to was incorrect. 

When I sign into my AmEx account, there is an option in the Account Management section, that specifically has a place to 'Transfer Available Credit to Another Card'.

[smc733]

I applaud and agree with your decision.  There are many members, which much to their credit, are content and able to manage 10+ accounts.  To me, I do not want to have to constantly monitor that many accounts for fraudulent charges, nor do I want to have to manage keeping them all active.

I've employed a new strategy of 2 daily use cards, with 2 backups that I keep active with a charge once every 3 months.  I have a 5th card which is permanently sockdrawered, and whatever happens, happens.  (Chase won't budge on an insane APR).

I think you made the right move, myself.  As long as your CLs are high enough to keep util down, there shouldn't be a problem.

[LS2982]

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@RemyWinchester wrote:

Hi,

In the past year I have gone on a bit of a tear, applying for and trying out all sorts of new cards and accounts.  I am leaving the country soon and have come to the realization that I simply have too many accounts, cards, and way too many sites to log in.  It has been quite a hassle checking everything!

Recently, in the name of simplicity and trying to make things easier on my financial life, I have done the following.

Closed:

AMEX Gold Delta Skymiles

Opened OCT/2011

CL: $5,000

Fidelity AMEX

Opened 12/2011 (i know... i know...)

CL: $7500

After closing these two cards, I am now left with 4 cards total:

AMEX BCE:

Opened 05/2011

CL: $11,000

PENFED Visa Platinum Cash Rewards:

Opened:

05/2011

CL: $7,000

USAA World Mastercard

Opened:

01/2009 (oldest card)

CL: $14,000

USAA Platinum Visa

Opened:

10/2011

CL: $1000

After closing my two cards, I called USAA and asked for my first ever CLI from them.  My CLI on my MC doubled from $7K to $14K.  I did this because I closed two accounts totaling $12.5K, so I thought I could compensate with a CLI on my USAA cards.

I use the AMEX BCE for most everything.  Penfed for gas, and my USAA MC for insurance and my amex backup.  My USAA Visa is sock drawered for emergency (losing wallet etc) and is hardly used.  It is new, so not eligible for a CLI until 6 months.

Questions:

1) Will AMEX respond negatively to my closing of my Delta skymiles card?  My BCE is my primary card, paid in full every month. 

2) I realize my scores will drop, when can I expect them to return to normal.  Last time I checked, my experian score was 744.  I'm guessing I'm going to take a real hit closing two newer accounts, and getting a hard or soft pull from USAA in doubling my CL with them.

Thanks all. 

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1.) I don't they will. As long as you treat the current card(s) you have with them properly you'll be fine!

2.) Your scores will not drop as long as your overall util % stays around the same and you have prior accounts opened that are around the same age or order as the ones closed.

[RemyWinchester]

whew, thanks for all the replies.  for a while there I thought I may have done something silly!  glad to find some support.  I didn't ask to increase the CL on my BCE or even transfer my delta gold CL to my BCE because quite frankly, I don't want any more credit on my BCE!!!! I know that sounds silly, but I was VERY happy with my 11K limit, I typically only put 1500-1800 on my card every month, and I'd like to fly under the radar and treat this card right.  

also, when I called amex, I spoke to a non-american, which suprised me.  I just wanted to make sure I handled the situation correctly (and he did!) so that was a bonus.  I'm a big fan of customer service and online web interface, which is why I like my USAA cards despite the not-the-greatest cash rewards.