topic Re: How Negative To Cancel Card Within First Year? in Credit Cards

How Negative To Cancel Card Within First Year?

BronzeTrader — Mon, 16 Oct 2017 23:24:11 GMT

Some of the cards, such as AmEx SPG card, has no AF fees the first year. I just wonder how bad it is going to be if you close the card after 10 months, after you receive the signon bonus.

Do not intend to do that. But just want to know.

Re: How Negative To Cancel Card Within First Year?

tcbofade — Mon, 16 Oct 2017 23:26:08 GMT

How bad is WHAT going to be?

The only two negatives that I see are that you'll shorten your average age of accounts, and you won't be able to "reapply" for the same card for x months, depending on the issuer.

Re: How Negative To Cancel Card Within First Year?

CreditCuriosity — Mon, 16 Oct 2017 23:36:05 GMT

Already took the AAoA and Inq so nothing bad really.. Might aggrevate the lender a bit, but as long as you kept it for close to a year you gave it a shot and should still be in their good graces. Card will keep reporting on your report for 10 years

Re: How Negative To Cancel Card Within First Year?

Anonymous — Mon, 16 Oct 2017 23:43:33 GMT

@tcbofade wrote:
How bad is WHAT going to be?

The only two negatives that I see are that you'll shorten your average age of accounts, and you won't be able to "reapply" for the same card for x months, depending on the issuer.

The card will still report for many years after it's closed. Even if it didn't, the card is less than a year old, so the negative impact on AAoA has already been done.

Re: How Negative To Cancel Card Within First Year?

HeavenOhio — Mon, 16 Oct 2017 23:59:13 GMT

I closed cards this year that were seven and six months old. My account age stats would improve noticeably if they dropped off my reports tomorrow.

I closed them because they were retail cards that were a bad idea in the first place. It became apparent that I was going to have to go out of my way to find ways to use them and keep them open. And both companies were somewhat of a pain to deal with.

Re: How Negative To Cancel Card Within First Year?

MrDisco99 — Tue, 17 Oct 2017 00:02:59 GMT

Amex has language in their ToS now that includes cancelling the card within the first year as potential justification for adverse action.

I plan to let mine turn a year old. They still refund the AF if you cancel within 30 days.

Re: How Negative To Cancel Card Within First Year?

AverageJoesCredit — Tue, 17 Oct 2017 00:37:08 GMT

Credit One, go for it, others , always your peragative I just wouldnt make it a habit with Amex or Chase they're bound to temember

Re: How Negative To Cancel Card Within First Year?

BronzeTrader — Tue, 17 Oct 2017 00:48:50 GMT

@MrDisco99 wrote:
Amex has language in their ToS now that includes cancelling the card within the first year as potential justification for adverse action.

I plan to let mine turn a year old. They still refund the AF if you cancel within 30 days.

This is what I was thinking. It may be a good idea to keep the card for a year or two. Pay only one AF and the lender won't block you. Or close it gracefully. AAOA and inquiry are not the concerns here.

Re: How Negative To Cancel Card Within First Year?

HeavenOhio — Tue, 17 Oct 2017 01:09:48 GMT

I think it depends on what you're doing. If your intention is to bonus-chase or churn, you don't want to draw attention to yourself. And you want to be able to get cards from the same lender in the future.

If you're not in the habit of aquiring cards and closing them, I wouldn't worry. If a card isn't working out, close it.

And of course, one should feel free to close cards that aren't "keepers" to begin with unless there's an appropriate upgrade or combination option.

Re: How Negative To Cancel Card Within First Year?

Meanmchine — Tue, 17 Oct 2017 03:15:47 GMT

ditto

Re: How Negative To Cancel Card Within First Year?

Anonymous — Tue, 17 Oct 2017 06:26:01 GMT

I'm thinking of the same, except with the Amex PRG because 50k MR is a solid deal but I won't cover anywhere near the $195 if I keep it. @MrDisco aren't you still avoiding the fee and so, possibly subject to the adverse action or does that apply only if cancelled within a year

Re: How Negative To Cancel Card Within First Year?

MrDisco99 — Tue, 17 Oct 2017 08:01:58 GMT

@Anonymous wrote:
@I'm thinking of the same, except with the Amex PRG because 50k MR is a solid deal but I won't cover anywhere near the $195 if I keep it. @MrDisco aren't you still avoiding the fee and so, possibly subject to the adverse action or does that apply only if cancelled within a year

I have no idea how they will interpret my request to cancel next year. Keeping the card for that long would seem to make a pretty good case that I gave the card a shot, though. Especially if I continued to use it during that time. I guess we'll find out then.

I think the ones they're really after are the ones who sign up for Plat, snag the bonus and $400 of Delta gift cards, and cancel early to get a prorated refund of the first year AF. That's kinda shady. I don't think they're really concerned with someone like me who's enjoying a card that they decided to make free for the first year. I'm still going to keep it that long just in case, though. It won't cost me anything to take that precaution.

Re: How Negative To Cancel Card Within First Year?

Anonymous — Tue, 17 Oct 2017 13:18:50 GMT

I think the OP was looking for responses geared toward potential AA, not responses with respect to age of accounts.

Re: How Negative To Cancel Card Within First Year?

Anonymous — Tue, 17 Oct 2017 13:53:12 GMT

@MrDisco99 wrote:
@Anonymous wrote:
@I'm thinking of the same, except with the Amex PRG because 50k MR is a solid deal but I won't cover anywhere near the $195 if I keep it. @MrDisco aren't you still avoiding the fee and so, possibly subject to the adverse action or does that apply only if cancelled within a year
I have no idea how they will interpret my request to cancel next year. Keeping the card for that long would seem to make a pretty good case that I gave the card a shot, though. Especially if I continued to use it during that time. I guess we'll find out then.

I think the ones they're really after are the ones who sign up for Plat, snag the bonus and $400 of Delta gift cards, and cancel early to get a prorated refund of the first year AF. That's kinda shady. I don't think they're really concerned with someone like me who's enjoying a card that they decided to make free for the first year. I'm still going to keep it that long just in case, though. It won't cost me anything to take that precaution.

That's totally up to you. If it's ok with you to keep it longer keep it it. Either way I don't think it would hurt. Like others have said it will stay on you file up to 10 yrs as a good account.

Re: How Negative To Cancel Card Within First Year?

Anonymous — Tue, 17 Oct 2017 14:38:22 GMT

Like some already said - If it is becaue of the bonus DO NOT close it as you will get your account reviewed and card freeze...and even all your AMEX cards.

I got an offer on my AMEX Delta Platinum and the small print is there warning you not to do this. Pay the annual and keep it for another year. This is why we always say to only apply for a card that you will actually use/need.

Good luck

Re: How Negative To Cancel Card Within First Year?

BronzeTrader — Tue, 17 Oct 2017 14:42:57 GMT

@Anonymous wrote:

I got an offer on my AMEX Delta Platinum and the small print is there warning you not to do this. Pay the annual and keep it for another year. This is why we always say to only apply for a card that you will actually use/need.

Good luck

This is not always true. Sometimes you want to try out different cards to explore the benefits. But you can certainly change your mind after a while if the new cards just do not fit your needs.

Look at all your credit cards in your wallet, in your draw, your closet and your shoeboxes. How many cards do you have and how many cards do you use reguarly. People say do not keep more than 5 CCs with active usage of balances. Many people here have 20+ credit cards. Some may have 50 of the cards.

Re: How Negative To Cancel Card Within First Year?

BronzeTrader — Tue, 17 Oct 2017 14:54:52 GMT

@Anonymous wrote:
@I'm thinking of the same, except with the Amex PRG because 50k MR is a solid deal but I won't cover anywhere near the $195 if I keep it. @MrDisco aren't you still avoiding the fee and so, possibly subject to the adverse action or does that apply only if cancelled within a year

I think both AmEx PRG and SPG have the first year AFs waived because it wants to give people a chance to try the card benefits. AmEx would be ok if you cancell it early and tell them this card does not fit your needs.

But if you did it before and there is a pattern of abuse, AmEx may not like this and your account can be flagged. I just do not have the data point to back it up. I'm thinking this should be ok for once in every two years. But not once a year.

Re: How Negative To Cancel Card Within First Year?

Anonymous — Tue, 17 Oct 2017 14:59:47 GMT

@BronzeTrader wrote:
@Anonymous wrote:

I got an offer on my AMEX Delta Platinum and the small print is there warning you not to do this. Pay the annual and keep it for another year. This is why we always say to only apply for a card that you will actually use/need.

Good luck
This is not always true. You're right, not alway true...but do you want to find out the hard way? Sometimes you want to try out different cards to explore the benefits.

But you can certainly change your mind after a while if the new cards just do not fit your needs. Yes, but on AMEX's eyes, how convenient it is to close it before the AF hits...they know people do this all the time and say they wanted to try etc and walk away with bonunes. Not saying that you are, you probably were trying the card and it really doesn't fit you, but AMEX sometimes will think otherwise, that is why they have these new rules.

Look at all your credit cards in your wallet, in your draw, your closet and your shoeboxes. How many cards do you have and how many cards do you use reguarly. People say do not keep more than 5 CCs with active usage of balances. Many people here have 20+ credit cards. Some may have 50 of the cards. People say this and that, there is no right amount of CCs to have. Everything you see in my signature is all i have. I did get some of cards for the bonuses and do keep them because i actually use them. Some cards i only get to increase my CL but have no AF.

Re: How Negative To Cancel Card Within First Year?

Hex — Tue, 17 Oct 2017 15:07:59 GMT

Even if you close it it will be still be considered into your AAA's. Closed accounts still continue to age while they sit on your report for ten years. So you want lose any points for ten years. That's with FICO Scores FACO Scores only count open accounts so your FACOs will drop but that doesn't really matter.