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Established Member
veryh2o
Posts: 21
Registered: ‎02-12-2009
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How will cancelling AmEx gold card affect my score?

[ Edited ]

Hi there,

 

AMEX is charging me $150 annual fee for it's gold card.  I think that's rather expensive and i do not use much of the card.  My other cards has all the benefit the gold card has and i do not have to pay annual fee.  I am thinking about cancelling the gold card, and i would like to know how much it will impect my credit score.

 

I might want to get a loan to buy a condo in this March.

 

(edited thread title only to better reflect content. - Scamp)

Message Edited by Scamp on 12-29-2009 06:29 AM
Senior Contributor
txjohn
Posts: 4,214
Registered: ‎09-12-2008
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Re: How will cancelling AmEx gold card affect my score?

[ Edited ]

About the only benefits that AMEX provides that I cannot get through another card is:

AMEX Presale Event Tickets and Preferred Seating

Various Airport Lounge Access (but that is for the Platinum Cards)

 

My USAA Amex lets me get Presale Event Tickets on TicketMaster, but not the Amex preferred seating.  So, if you are a real event nut (concerts, sporting events, etc.) then you may find the fee worthwhile.

 

(edited title only - Scamp)

Message Edited by Scamp on 12-29-2009 06:29 AM

Credit Scoring 101 - Tuscani   *  Guide to Common Abbreviations
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09/03/2009 TU: 777, EQ: 776 ($8 balance on an account dropped me out of 780's)
03/28/2009 TU: 814, EQ: 810, EX: 781 (02/12/2009)
05/18/2005 TU: 563, EQ: 580, EX: 549
Established Member
veryh2o
Posts: 21
Registered: ‎02-12-2009
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Re: How will cancelling AmEx gold card affect my score?

[ Edited ]

Nope, totally have no idea what you were talking about.  I am just afraid that if i cancel the gold card that might effect my credit score.

 

I really do not see any benefit to have the card, and i have to fork out $150 annual fee.

 

Shan

 

(edited title only - Scamp)

Message Edited by Scamp on 12-29-2009 06:30 AM
Moderator Emeritus
llecs
Posts: 32,881
Registered: ‎08-04-2007
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Re: How will cancelling AmEx gold card affect my score?

Score-wise, there's only a couple of things to consider:

 

History - when you cancel, it'll still positively factor into your length of history for the next 10 years. After 10 years, it'll be removed and that can negatively impact your AAoA and your score. YMMV based on what you add over the next 10 yrs. and what drops off before then. Amex is good in that if you ever decide to open a new Amex, it'll adopt the open date of your first Amex card. It's a great way to add history.

 

Mix of credit - if this is your only card or even your only charge card, then removing it could have a negative impact. However if you have other CCs outside of this card, then there's no need to worry.

 

Utilization - Amex charge cards have no impact on util or your score except for the TU98 version of your TU FICO score. If you carry high balances on your other CCs, then you may see a hit on TU only as pulled from this website. All newer versions, including the version now most-used (TU04) by lenders doesn't factor your Amex into util so there's no issue there.

 

 

Established Contributor
Watchmann
Posts: 985
Registered: ‎05-14-2008
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Re: How will cancelling AmEx gold card affect my score?

The trend in the industry is to charge fees for all kinds of cards (MC and Visa), so by cancelling the AMEX card may not buy you much in the long term.  Within the next 12-18 months most cards will be charging annual or monthly fees, sometimes based on how much you charge.
Senior Contributor
txjohn
Posts: 4,214
Registered: ‎09-12-2008
0

Re: How will cancelling AmEx gold card affect my score?

[ Edited ]

veryh2o wrote:

Nope, totally have no idea what you were talking about.  I am just afraid that if i cancel the gold card that might effect my credit score.

 

I really do not see any benefit to have the card, and i have to fork out $150 annual fee.

 

Shan

 

(edited title only - Scamp)

Message Edited by Scamp on 12-29-2009 06:30 AM

 

If you go to AMEX website, use AMEX consierge or go through TicketMaster.com, you can get event tickets (concerts, sporting events, etc) up to 3 days before they go on sale to the general public.

 

I used my AMEX to get Taylor Swift tickets for my daughters 3 days before general sales.  Most of their friends were unable to get tickets because they sold out almost instantly when general sales went public.  So they were left to listent to radio stations, calling in hoping to win some crazy radio contest for tickets.

 

:smileyhappy:

 

 

 

Message Edited by txjohn on 12-30-2009 06:26 AM

Credit Scoring 101 - Tuscani   *  Guide to Common Abbreviations
Frequently Requested Threads * FICO High Achievers  *  FICO Score Estimator


09/03/2009 TU: 777, EQ: 776 ($8 balance on an account dropped me out of 780's)
03/28/2009 TU: 814, EQ: 810, EX: 781 (02/12/2009)
05/18/2005 TU: 563, EQ: 580, EX: 549
Regular Contributor
PhillyGuy215
Posts: 165
Registered: ‎03-22-2009
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Re: How will cancelling AmEx gold card affect my score?

That remains to be seen, considering that on the Visa network at least debit card transaction numbers AND dollar volume have now surpassed credit cards.  If CC issuers want to see a dramatic plunge in their merchant volume thanks to consumers closing unwanted accounts, so be it.   I will be happy to close my cards if/when slapped with those fees and keep only one revolving card open (the cheapest one). 

EQ: 801!
I got one foot in the 800 Club, now I need the other two feet.
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Epic Contributor
haulingthescoreup
Posts: 28,115
Registered: ‎04-01-2007
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Re: How will cancelling AmEx gold card affect my score?


PhillyGuy215 wrote:

...If CC issuers want to see a dramatic plunge in their merchant volume thanks to consumers closing unwanted accounts, so be it.   I will be happy to close my cards if/when slapped with those fees and keep only one revolving card open (the cheapest one). 

 


+1 !
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Established Member
veryh2o
Posts: 21
Registered: ‎02-12-2009
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Re: How will cancelling AmEx gold card affect my score?

Hi llecs,

 

Thanks for alot of good info.

 

currently have two amercian express card, the other one is without annual fee.  if i cancell the annual fee gold card, will that history move to my new card?

 

I have other credit cards besides the one that i am planning to cancel.

 

Established Member
veryh2o
Posts: 21
Registered: ‎02-12-2009
0

Re: How will cancelling AmEx gold card affect my score?

Dont buy any tickets to do anything so... but it does sound like a good option.

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