topic Re: Redundancy in Credit Cards

Redundancy

ToxikPH — Mon, 19 Aug 2019 14:50:49 GMT

I have way too many cards for my income level and age and was wanting to cancel a few in order to get down to only using two on a daily basis. I'm only 20 y/o and make about 31k before taxes.

These are all my cards:

American Express

Platinum

Gold

Delta Gold

Hilton Honors

Hilton Surpass

Blue Cash Everyday

Blue Business Plus

Others

Citi DC

Chase Freedom

Citi Rewards+

Guitar Center (Paying off then holding for age)

Apple Card

Discover It

Capital One Venture

I was thinking that a lot of these are redundant especially for my income level. I'm just worried that if I cancel a lot of the Amex cards in the terms of simplicity and saving AFs that it would ruin my relationship with them in the future for when I do get a high paying job (going into finance). I also planned on the two cards that I would use on a daily basis be the Hilton Aspire card (either upgrade or apply and cancel the other two) and the Citi DC for when Amex isn't accepted.

Would canceling that many Amex cards hurt that relationship or should I just downgrade the ones with no-AF paths and cancel the platinum/gold? Should I keep all the no-AF ones just for the age and relationships with the other banks? What should I do about the other banks that may seem redundant?

Re: Redundancy

CreditInspired — Mon, 19 Aug 2019 14:56:29 GMT

I think before we can make recommendations, it would be good to know:

age of each card
CLs and UT on each one
your spend and categories
what's most useful to you--CB, points, etc.

Re: Redundancy

ToxikPH — Mon, 19 Aug 2019 15:08:55 GMT

Discover - 4 months 2k 28%

Guitar - 17 months 3.8k 14%

Gold - 4 months

HH - 4 months 1k 0%

Surpass - 1 month 5k 0%

Citi DC - 1 month 3.5k 0%

Citi Rewards + - 1 month 2.2k 45%

Chase - 7 months 2k 0%

Delta - 2 months 2k 0%

BCE - 9 months 1k 0%

BBP - 5 months 2k 50%

Capital One - 2 months 5k 0%

Platinum - < 1 month

Apple - < 1 month 5k 0%

I spend mostly on food and travel. That's why I was thinking the Hilton Aspire as most of my Amex points go to Hilton and the gold card is only earning 8x Hilton points while the HA earns 7x anyway. With the HA I could cancel both my Gold and Platinum as it would cover both of those categories for a lower AF. I keep fighting with myself on CB vs points and I feel like points is the better value but I'm also not sure my income is high enough to make up the AF on points cards.

Re: Redundancy

RSX — Mon, 19 Aug 2019 15:11:03 GMT

^ as above more info is needed

but I can’t see paying the AF on a Platinum and/Or Gold with a $31k income

i make more than that and just canceled a Green card because I wasn’t going to break even on the $95 AF

post up the full info and people will help out more.

Re: Redundancy

Anonymous — Mon, 19 Aug 2019 15:12:55 GMT

I’m amazed you got approved for all those at your age & income, lol Amex Platinum.

Re: Redundancy

ToxikPH — Mon, 19 Aug 2019 15:13:49 GMT

Added info:

I also have no problem breaking even on my gold card as I can totally use the food/airline credit to bring the EF down to $30. I'm just not sure it's worth it as the Hilton cards only earn one point less than the gold and have lower AF.

Re: Redundancy

RSX — Mon, 19 Aug 2019 15:17:27 GMT

Ok. Do the math on each and if you will break even, then keep it

if you don’t break even, drop it

i would suggest waiting until they are all 24 months old before getting any new ones, regardless of whether you drop any or not.

All the best to you. Keep reading on this forum, lots of good info on here. I wish I had found it when I was 20.

Re: Redundancy

Anonymous — Mon, 19 Aug 2019 15:19:32 GMT

I would also strongly caution you to wait until after a full year with an Amex card before canceling it. You don’t want to get on their bad side and lose SUBs you’ve earned by having them clawed back, or be barred from earning future SUBs. Amex doesn’t like card closures for cards open less than a year.

Re: Redundancy

ToxikPH — Mon, 19 Aug 2019 15:20:14 GMT

A lot of them still do seem to have the same earning as other cards. If you had all these cards which ones would you use and why?

Re: Redundancy

AverageJoesCredit — Mon, 19 Aug 2019 15:27:04 GMT

You can do alot on that income. $250 can be afforded on 31k lol, if not you are doing something wrong. Because you are so young, use the cards you need and let go the ones you dont. You have a lifetime to build your profile or get more. Good luck

Re: Redundancy

RSX — Mon, 19 Aug 2019 15:38:44 GMT

merican Express

Platinum - 550

Gold - 250

Delta Gold - 95

Hilton Honors - 0

Hilton Surpass - 95

Blue Cash Everyday - 95

Blue Business Plus - 0

total AF = $1085. (Some of them don’t charge for the first year, which is good)

based on the note above about not canceling for at least 1 year , I would cancel each one as they hit 13 months, keeping the Hilton Honors and Blue Business only

Re: Redundancy

ToxikPH — Mon, 19 Aug 2019 15:43:41 GMT

I don't use my BBP as I don't want to risk Amex seeing personal spend on the card and shutting down my other accounts as the Hilton card is my main card.

Re: Redundancy

Anonymous — Mon, 19 Aug 2019 15:44:00 GMT

I’d honestly keep Surpass over the base card, even with the AF. $95 is trivial for the accelerated earnings of the Surpass, plus complimentary Gold status at Hilton. I have both and will be moving CL to the Surpass from the base card and closing the base card in month 14.

Re: Redundancy

CreditInspired — Mon, 19 Aug 2019 15:57:02 GMT

@ToxikPH wrote:
Discover - 4 months 2k 28%
Guitar - 17 months 3.8k 14%
Gold - 4 months
HH - 4 months 1k 0%
Surpass - 1 month 5k 0%
Citi DC - 1 month 3.5k 0%
Citi Rewards + - 1 month 2.2k 45%
Chase - 7 months 2k 0%
Delta - 2 months 2k 0%
BCE - 9 months 1k 0%
BBP - 5 months 2k 50%
Capital One - 2 months 5k 0%
Platinum - < 1 month
Apple - < 1 month 5k 0%

I spend mostly on food and travel. That's why I was thinking the Hilton Aspire as most of my Amex points go to Hilton and the gold card is only earning 8x Hilton points while the HA earns 7x anyway. With the HA I could cancel both my Gold and Platinum as it would cover both of those categories for a lower AF. I keep fighting with myself on CB vs points and I feel like points is the better value but I'm also not sure my income is high enough to make up the AF on points cards.

Wow! These accounts are so new. IMHO, I suggest not closing any. Yes, they will stay on your CR for 10 years after closing but then you will be only 30 when they drop off. I closed my Cap1 when it turned 8 years in 2010, and it is still on my CR with a 17.2 yr age, which will drop off any day now. I wish I had never closed it and just SD it because when it does drop off, it will affect my scores a little because my next oldest card is 11 years.

Also, think of how these cards aging together will make your credit profile look. Just my 2 cents.

Re: Redundancy

RSX — Mon, 19 Aug 2019 16:09:29 GMT

I get your point, but that Cap1 AF was likely only $59. So that price over the last 10years May or not have been worth it for age

but credit age should NoT cost you $800-$1085 / year. No way that is worth it.

He will be getting new cards at age 23-26 that will make up for the loss. and he will have the money in his pocket

2 weeks pay, after tax, for the privilege of carrying a Plat and Gold, and they won’t help lower his Util. I just can’t say that is good financial planning.

Re: Redundancy

kdm31091 — Mon, 19 Aug 2019 17:02:32 GMT

Don’t pay annual fees for cards you aren’t going to use. Cancel them if they’re costing you unnecessary money. Just be careful with applications in the future and try to plan ahead. It’s easy to spread too thin and end up with redundant cards. You can only justify so many reward programs. You’ll find it’s hard to achieve any one goal if you’re spreading too thin.

Amex doesn’t prefer if someone downgrades or cancels their card before a year so I can understand the advice not to do so, but it’s also a waste of money to pay for cards you won’t benefit from.

Re: Redundancy

Anonymous — Mon, 19 Aug 2019 17:11:03 GMT

Agreed in principle on the charge cards, unless OP can reap the value that those cards are designed for. His spend is primarily food and travel. Whether that’s enough travel to justify the Plat is debatable - that really necessitates a LOT of travel, and I’d venture to guess not enough to make paying $550/year wise. But Gold on the other hand has great earnings for restaurant and grocery spend, and good MR point usage for travel as well. Using that for airfare and his Hilton card for lodging can easily make travel significantly less costly via spending he’d normally be doing anyway, and at a much lower AF to boot.

Re: Redundancy

KLEXH25 — Mon, 19 Aug 2019 17:22:58 GMT

They don’t refund AF, do they? If you’ve already paid the AF and only recently opened the cards, leave them open for now, since the damage is already done. Let them age and see how your actual spending plays out. Chances are you’ll eventually close them but there’s no sense in pissing off AMEX. Plus you won’t ever get the bonus again if you close them now and open at a future date.

Re: Redundancy

Anonymous — Mon, 19 Aug 2019 17:24:43 GMT

If you wait until after the first year and allow the AF to post, and then cancel within 30 days, they’ll credit the AF back.

Re: Redundancy

wasCB14 — Mon, 19 Aug 2019 20:49:42 GMT

11 cards in the last 5 months on $31k annual pretax...which bonuses are you actually able to hit?

Not much concern about clawbacks on bonuses you may fail to get.

OP has spoken in past threads about applying indiscriminately. Some closures/PCs may be advisable where there is no bonus and any AF is partly recoverable.

And find another hobby. Too often, closures just lead to future indiscriminate apps filling the "wallet void".