topic Re: What should I do with unused AMEX CM card? in Credit Cards

What should I do with unused AMEX CM card?

Anonymous — Sun, 10 May 2020 12:19:07 GMT

I have an unused AMEX CM card with a $12K SL (I replaced it with the higher-CB PPMC for non-category spend). This limit represents about 30% of my overall card SL. I only carry a small balance of up to $300 per month on one card (a BCP) for scoring puposes. All my other cards are PIF before posting, so utilization is not an issue.

My only credit-related goal at this time is to try to maintain my scores and overall credit profile to get the best rate on a lease (loan) in June or July of 2021 (a year from now). My income is somewhat low, but steady. I don't pre-qualify for any new cards that excite me, despite having a totally clean file and decent scores (FICO 8 TU/EX/EQ 786/785/769) . I believe it's because I've peaked with my SL relative to my income. I'm concerned that this overall SL peak may affect me getting a good lease/loan deal.

At first I thought I should cancel the card. But then I thought that maybe in the future a different AMEX card may interest me and I could do a product change. I also would like to keep my AAoA as good as possible. I'm leaning towards asking AMEX to reduce the SL on this CM card to $1K-$2K and use it a few times a year and keep it open.

What am I missing here? Any advice is appreciated.

Re: What should I do with unused AMEX CM card?

Mv350 — Sun, 10 May 2020 12:29:10 GMT

I would keep it open for UTI padding. Since it is a no AF card, it doesn't hurt to keep it open. Although I'm pretty sure you could move the limit over to your BCP if you don't want to keep it open so you don't have to keep tabs on it. That way you don't lose the padding at all.

A closed card will continue to report for up to 10 years. So your AAoA won't take a hit.

Re: What should I do with unused AMEX CM card?

NRB525 — Sun, 10 May 2020 12:39:48 GMT

I would keep it open, at this CL. 30% is a big chunk of your credit limits. What is your limit on the BCP?

Since you don't care how perfect your scores are, why not let the cards report their activity / statement balance as normal, and use autopay to let them pay nearer the payment due date? You will be surprised how little score changes, and putting reported use on these cards can have benefits later, because of the actual visibility of your card usage to all / other lenders.

Re: What should I do with unused AMEX CM card?

CreditCuriosity — Sun, 10 May 2020 12:40:49 GMT

Doesn't hurt you keeping it open or as other poster said you should be able to move the CL over from CM to BC card with exception of i believe 500-1kish of it and then close out the card as well.. Closed card continue to build your AAOA for approx 10 years as well so no impact there.. The worse impact is always the initial opening of the card.

Re: What should I do with unused AMEX CM card?

Anonymous — Sun, 10 May 2020 12:50:30 GMT

BCP limit is $5K.

I have considered what you've said regarding auto-paying. I may give that a try for the reasons you gave. I just got into the habit of AZO and it stuck.

Edit: typo

Re: What should I do with unused AMEX CM card?

kdm31091 — Sun, 10 May 2020 12:57:00 GMT

I rarely see much point in requesting a voluntary credit line decrease. If the card is useless to you, a lower limit is just going to make it even more useless because you can't even use it for a one off big purchase or anything.

It has no fee so it hurts nothing to keep it open, but I also understand wanting to simplify. I doubt you would see any large effects from closing the card so if that's the route you wanted to take I don't see an issue. Keep in mind you can move limits with Amex (with some restrictions) so you could do that before closing it if you wanted to increase your BCP.

Re: What should I do with unused AMEX CM card?

Anonymous — Sun, 10 May 2020 13:10:49 GMT

>I don't pre-qualify for any new cards that excite me, despite having a totally clean file and decent scores (FICO 8 TU/EX/EQ 786/785/769)

Prequals not happening, even for excellent credit, is more due to the current economic crisis.

>I believe it's because I've peaked with my SL relative to my income. I'm concerned that this overall SL peak may affect me getting a good lease/loan deal.

Nah. Havinig debt is the worry, not available credit. There's still room to grow your limits if you want. Having lots of available credit is good and won't hinder you except for with some particular credit unions. You're still well below where even they would worry.

>My only credit-related goal at this time is to try to maintain my scores and overall credit profile to get the best rate on a lease (loan) in June or July of 2021 (a year from now).

Your scores listed are already there. So, you should get approved at the best rates. The rest would depend on your debt to income ratio. Just keep doing what you're doing and you should be set.

Re: What should I do with unused AMEX CM card?

SouthJamaica — Sun, 10 May 2020 13:12:35 GMT

@Anonymous wrote:
I have an unused AMEX CM card with a $12K SL (I replaced it with the higher-CB PPMC for non-category spend). This limit represents about 30% of my overall card SL. I only carry a small balance of up to $300 per month on one card (a BCP) for scoring puposes. All my other cards are PIF before posting, so utilization is not an issue.

My only credit-related goal at this time is to try to maintain my scores and overall credit profile to get the best rate on a lease (loan) in June or July of 2021 (a year from now). My income is somewhat low, but steady. I don't pre-qualify for any new cards that excite me, despite having a totally clean file and decent scores (FICO 8 TU/EX/EQ 786/785/769) . I believe it's because I've peaked with my SL relative to my income. I'm concerned that this overall SL peak may affect me getting a good lease/loan deal.

At first I thought I should cancel the card. But then I thought that maybe in the future a different AMEX card may interest me and I could do a product change. I also would like to keep my AAoA as good as possible. I'm leaning towards asking AMEX to reduce the SL on this CM card to $1K-$2K and use it a few times a year and keep it open.

What am I missing here? Any advice is appreciated.

Just let it be.

PS Closing it wouldn't affect your AAoA because it will likely stay on your reports for many years after closing. Nevertheless, I think you're overthinking things, and do not need to take any action at this time.

Re: What should I do with unused AMEX CM card?

Anonymous — Sun, 10 May 2020 14:13:02 GMT

OP--If it were me, I'd reallocate most of the CL from your CM to your BCP and keep it open. Put a little recurring charge on it (streaming Svc, something small) to keep it active, set it on auto-pay either Statememt Balance or Current Balance, whichever is best for you currently, and just sit back and let it soak.

If there's an Amex Card you like now (or in the future) and aren't concerned about not getting a SUB, and if Amex will PC, that's reasonable too. I've never PC'd with Amex myself. If they decide to buff the CM to make it more attractive and competitive you'll already be there too. That happened to me with my Cap1 QuickSilver. About 4 weeks prior to the roll-out of the 4% Savor and "New" 3% Savor One, I had PC'd my QS to the Savor. So now I'm "grandfathered in" with a 4% Savor and No AF. I could have closed it with the small CL and numerous other 1.5% & 2% "general use" cards, but it wasn't causing any trouble and ended up giving me a decent little 4% CB Card for Dining and Entertainment.

We're all talking about "first world problems" here, but you look to be in good shape line-up wise and score wise. No need to trouble yourself too much about it.

Finally, with no AF, it doesn't hurt you at all, and if/when you acquire newer trade lines, it'll soften the downward departure of your AAoA. If there were an AF involved, I'd likely be of a different opinion.

Happy Sunday!

Re: What should I do with unused AMEX CM card?

Anonymous — Sun, 10 May 2020 14:23:22 GMT

@Anonymous wrote:
BCP limit is $5K.

I have considered what you've said regarding auto-paying. I may give that a try for the reasons you gave. I just got into the habit of AZO and it stuck.

Edit: typo

AZEO every month is a somewhat expensive (in the sense of what is been given up) habit, but I'm sure it makes the issuers happy!

Re: What should I do with unused AMEX CM card?

K-in-Boston — Sun, 10 May 2020 19:30:51 GMT

Your only product change options would be to Blue Cash or a 2nd Blue Cash Preferred. It is very unlikely Amex will ever change their PC policies that require them to be in the same family. If the card is 2 or more years old, I'd move the credit line to BCP and close it. If not, I'm move most of the credit line to the BCP that you are using - that can be done online instantly.

Re: What should I do with unused AMEX CM card?

wasCB14 — Sun, 10 May 2020 21:02:49 GMT

@Anonymous wrote:
@Anonymous wrote:
BCP limit is $5K.

I have considered what you've said regarding auto-paying. I may give that a try for the reasons you gave. I just got into the habit of AZO and it stuck.

Edit: typo
AZEO every month is a somewhat expensive (in the sense of what is been given up) habit, but I'm sure it makes the issuers happy!

I know I wouldn't want to give up 5% (or whatever) just because it was "that time of the month".

With 18 cards I usually end up with new balances (or remaining balances at 0%) on maybe 11 or 12 cards.

Re: What should I do with unused AMEX CM card?

wasCB14 — Sun, 10 May 2020 21:26:51 GMT

I'd transfer some of the CL to BCP, but I generally take the view that if:

1. a card has no AF, and

2. I'd be logging into the website anyway (for another card), and

3. the card doesn't prevent me from getting another card I want more, and

4. the issuer allow me to lock the card or provides a lot of alerts for card activity

...then I keep the account open.

Re: What should I do with unused AMEX CM card?

Anonymous — Sun, 10 May 2020 21:39:35 GMT

@Mv350 @NRB525 @CreditCuriosity @kdm31091 @Anonymous @SouthJamaica @Anonymous @Anonymous @K-in-Boston @wasCB14

All excellent advice and information, thank you. Considering what you've all contributed, I'm going to simply leave the CM card as is for the time being and contemplate moving SL to the BCP to help with utilization there. I'm glad to know that having the CM card is not hurting anything, which was one of my concerns.

Regarding AZEO, I'm very glad for the advice/reminder on this. I'm going to be less strict and structured with my payments moving forward. I'll allow things to post within prescribed utilization limits. Seldom do I miss out on category spend, but it is tiresome at times scheduling purchases.

This is a great forum to be a part of ... again, thank you!

edit: typo

Re: What should I do with unused AMEX CM card?

Anonymous — Mon, 11 May 2020 17:40:59 GMT

Yeah, unless you're at the 5 card max like me and no AF, I'd leave it open. Doesn't hurt anything.

Re: What should I do with unused AMEX CM card?

K-in-Boston — Mon, 11 May 2020 18:20:15 GMT

It's probably also worth mentioning that I haven't seen any data points where Amex has closed a card for non-use when the cardholder regularly uses other Amex cards. I just realized that April 2018 was the last time I had any activity on my Blue card, and 25 months later it is still open. I think I did $50 Amazon reloads once each in 2016 and 2017. I nerfed the card to a $500 limit in 2015 as it's not really useful to me and there is no reason for me to PC it to ED or EDP, but I'm in no rush to close it since it's 18 years old.