What to do with amex cards that are backdated

[Revelate]

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@Anonymous wrote:

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@Revelate wrote:

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@kdm31091 wrote:
I never advocate keeping cards just to keep them. AAOA is important, but, at the same time, it's only 15 percent of scoring. The accounts, even if closed, will continue to age for ten years.

Realistically, 10 years is a long time so it's hard to say what impact you'll see, if any. If you aren't going to use the cards, I'd probably just move on and close them. It's not like you don't have other cards.

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To add to that, I think anyone with a clean sheet and decent tradelines and 10ish year AAOA can make an 800 on any relevant FICO model and almost assuredly Vantage 3 (if I can get 791 there at 2 years AAOA with my file even...) closing an unused credit card is absolutely irrelevant in the grand scheme of things if it doesn't materially change your revolving utilization now.  Might make a difference on bucketing if it were the oldest card but with two cards backdated there, no big deal in this case.

Think with more and more models moving towards giving more weight to recent data, 10 years from now when the closed PRG would be gone would be swabo effect, and additional AAOA (diminishing returns) at the expense of $1950 over those 10 years (not including offers which is how I EASILY justify keeping my Zync open)  doesn't seem to make a great deal of sense.

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You don't need anywhere near a 10 year AAoA to hit the 800 range. Mine is 4 years and, before my installment loan reported paid, my TU was at 821 and EX at 804. I should note, though, that my oldest account reporting is very old.

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Yeah I was just throwing that out as we're talking 10 year time frame with an account dropping off the report at that point.  It's unlikely anyone is going to be beating their AAOA down as much in the future once they get to near credit report complete, very few exceptions to that here and they just leverage their credit report for sport at this point as near as I can tell heh.

Before I hosed up my installment ratio by obtaining a mortgage, I thought I had a shot at 800 on FICO 8 when I'm clean in late December 2017 where I would've had a 4 year AAOA too.  I would've been happy on EQ Beacon 5.0 with anything above a 760 at that point... now it looks like I'll get my benchmark on that score by then, but I'll be lucky to even crack 770 on FICO 8.  My oldest account also isn't as good as yours .

[Anonymous]

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@Anonymous wrote:

Do charge cards and credit cards carry the same weight on credit scoring?

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Charge cards can help your length of accounts and payment history if kept in good standing. Only difference is the utilization wouldn't factor into the scoring pie like a regular credit card does. It can still help your credit profile imo as those two factors of length of credit and payment history makes up a good portion of your score. 

[darkfrosty]

Sorry I didnt respond sooner. Basically I dont use my amex cards anymore I mainly use chase cards because I dont really value MR points. I was actually considering cancelling both the PRG and ED but I think I should leave one open.

My credit scores are all in the upper 780+ .. My oldest account is like 15 years and my AAoA is like 9 years or so. 

Hmm maybe I should close the ED and keep the charge card open .. decisions decisions. I was planning on getting the business versions of the charge cards eventually though. I really dont like only carrying cards from one lender just in case something happens.

[Anonymous]

I've never really understood the big deal between backdating and member since with Amex.  Someone want to clue me in?

[myjourney]

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@Anonymous wrote:

I've never really understood the big deal between backdating and member since with Amex.  Someone want to clue me in?

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Backdating allowed for no hit in AAoA when used in conjunction with app spree or just a new app 

Example apply for 2 Chase cards 1 Citi in 2014

Then app and get an Amex which would be backdated to 2000 

The 2000 history would show up on the new card even tho the card was approved in 2014 

Thus offsetting any ding in AAoA

Membersince date really IMHO means nothing now that backdating is gone 

It was used for say... the card I app'ed for in 2014 and the history didn't backdate to 2000 

Then I could call in and say hey my membersince date is not correct on my new card 

Thus triggering the old history being applied to the new card when they update 

Now it's just cosmetics and a matter of preference IMHO

P.S.

After reading this I'm sad and depressed 

Oh Lord no more backdating 

Sniff sniff sniff

[darkfrosty]

Hmm now im not sure what to do. I had called amex asking when my annual fee was going to hit and they told me not until next year because i downgraded from platinum to PRG .. but now I just got notified that $195 fee just hit .. so im thinking i will cancel it. I dont use it much at all to cover that fee. Sucks I will lose that card that is backdated to 99. Still will have my ED which is backdated.

[SouthJamaica]

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@darkfrosty wrote:

I have two amex cards that are backdated to 99. ED and a PRG which I downgraded from Platinum. Im not really into MR points but got them because of the backdating. The fee for PRG wont hit until next feb but im not sure I even want to keep it anymore. I put all of my spend on chase UR cards. I would keep the ED I guess because of the CL I have on it even though I havent used it in a long time. Is there any downside to cancelling the PRG ? I mean it is backdated and Amex no longer does that?

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Do. Not. Cancel.

[Anonymous]

The loss of backdating on reports was sad...I only learned of it after applying for the BCE last week. Not that I was around for long...MSD 2005 and closed that account in 09 or so.

But OP...AAoA shouldn't be a major concern if you don't actually use the charge card and don't want to just eat the AF each year...like others have said.

I don't travel much and the Amex rewards don't do much for me either...so the charge card options that were once so appealing have lost their lustre. However, I do want to keep an Amex around so the BCE seemed like a decent option.

So if I were you...keep the ED...dump the PRG

[Anonymous]

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@darkfrosty wrote:

I have two amex cards that are backdated to 99. ED and a PRG which I downgraded from Platinum. Im not really into MR points but got them because of the backdating. The fee for PRG wont hit until next feb but im not sure I even want to keep it anymore. I put all of my spend on chase UR cards. I would keep the ED I guess because of the CL I have on it even though I havent used it in a long time. Is there any downside to cancelling the PRG ? I mean it is backdated and Amex no longer does that?

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If you only have 5 cards total, do not close anything. I believe you can further downgrade your PRG to the green card which has a $95 AF. You may even get them to waive that fee as part of a retention offer. As was said, if you only have the cards in your sig, DO NOT CANCEL.

[myjourney]

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@darkfrosty wrote:

Hmm now im not sure what to do. I had called amex asking when my annual fee was going to hit and they told me not until next year because i downgraded from platinum to PRG .. but now I just got notified that $195 fee just hit .. so im thinking i will cancel it. I dont use it much at all to cover that fee. Sucks I will lose that card that is backdated to 99. Still will have my ED which is backdated.

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Downgrade to green 

With Amex offers you may have a better chance of offsetting the AF since you don't use it much anyway and keep the TL as well 

However if you can't make that work no use in paying AF for a card that serves absolutely 0 purpose