topic Re: Closing Amex Gold question in Credit Cards

Closing Amex Gold question

Slowlyrebuilding — Thu, 16 Jun 2022 15:28:42 GMT

So a little less than a year ago my Amex Gold was given a preset spending limit. It wasn't a huge deal to me at the time but since then Amex has dropped the benefits from Gold that I use the most to justify the fee so I am thinking of closing. I have 3 other Amex credit cards. I wanted to transfer the credit limit from 2 of them to one and close. So essentially I would be down to 1 Amex card.
When I try to transfer the credit limit it says it's denied because the Gold has a preset spending limit.
I have 3 questions:

1) if I close Amex Gold will it affect my utilization or is it not calculated in?

2) has anyone had success closing a card with a preset spending limit and then being able to transfer credit limit?

3) does closing cards with Amex affect your ability to get approved with them in the future?

Re: Closing Amex Gold question

SouthJamaica — Thu, 16 Jun 2022 15:37:48 GMT

@Slowlyrebuilding wrote:
So a little less than a year ago my Amex Gold was given a preset spending limit. It wasn't a huge deal to me at the time but since then Amex has dropped the benefits from Gold that I use the most to justify the fee so I am thinking of closing. I have 3 other Amex credit cards. I wanted to transfer the credit limit from 2 of them to one and close. So essentially I would be down to 1 Amex card.
When I try to transfer the credit limit it says it's denied because the Gold has a preset spending limit.
I have 3 questions:
1) if I close Amex Gold will it affect my utilization or is it not calculated in?
2) has anyone had success closing a card with a preset spending limit and then being able to transfer credit limit?
3) does closing cards with Amex affect your ability to get approved with them in the future?

1. The Gold card is a charge card, which is not factored into utilization in any of the more modern FICO scoring models. But it can be counted as an 'account with balance' if it reports a balance.

2. I never tried it but I'm sure it's impossible to transfer any part of its "limit" to anything.

3. No, closing cards does not affect your ability to get approved in the future, but sometimes, if they tag you as a SUB-churner, it might affect your ability to get a sign up bonus. But I'm not an expert on that, perhaps one of the Amex experts will enter the conversation.

Re: Closing Amex Gold question

Veronik2019 — Thu, 16 Jun 2022 15:40:41 GMT

@Slowlyrebuilding wrote:
So a little less than a year ago my Amex Gold was given a preset spending limit. It wasn't a huge deal to me at the time but since then Amex has dropped the benefits from Gold that I use the most to justify the fee so I am thinking of closing. I have 3 other Amex credit cards. I wanted to transfer the credit limit from 2 of them to one and close. So essentially I would be down to 1 Amex card.
When I try to transfer the credit limit it says it's denied because the Gold has a preset spending limit.
I have 3 questions:
1) if I close Amex Gold will it affect my utilization or is it not calculated in?
CHARGE CARDS UTIL% IS NOT CALCULATED IN YOUR OVERALL UTILIZATION.
2) has anyone had success closing a card with a preset spending limit and then being able to transfer credit limit?
YOU CANNOT TRANSFER A CREDIT LIMIT THAT DOESN'T EXIST. CHARGE CARDS DON'T HAVE PRESET LIMITS.
3) does closing cards with Amex affect your ability to get approved with them in the future? I HAVE HEARD IF CLOSED WITHIN THE SAME YEAR, ITS A BAD IDEA. I'D WAIT AT LEAST TILL YOU'VE HAD IT FOR A YEAR OR TWO. IF THE AMEX CARD HAS AN ANNUAL FEE, WAIT TILL RENEWAL, LET FEE POST THEN CANCEL. THEY'LL REFUND FEE. WELL, WHEN YOU DOWNGRADE CARDS I MEAN. IDK ABOUT A CLOSURE OF THE CARD. I WANT TO CLOSE MY GOLD CARD AS WELL BUT I STILL GOT A BALANCE. AMEX CHAT TOLD ME I CAN CLOSE CARD WITH BALANCE ON THE ACCOUNT. SORRY FOR BIG CAPS LETTERS. THE KEYBOARD MESSED UP.

Re: Closing Amex Gold question

Slowlyrebuilding — Thu, 16 Jun 2022 15:42:01 GMT

Just to clarify I wasn't looking to transfer the gold limit. I have 3 Amex credit cards (2 Hilton and Bonvoy). I wanted to transfer the balance from 2 of them to the 3rd. When I try to do that now it denies the request due to having a preset limit on the gold.

Re: Closing Amex Gold question

GatorGuy — Thu, 16 Jun 2022 15:45:18 GMT

If you want to improve things with Amex, I would focus instead on whatever it was that caused Amex to institute a PSL. The like for you to spend a lot and PIF.

I don't think closing the Gold is going to help you. But if it isn't useful to you anymore and you have had it for over a year then go ahead.

Re: Closing Amex Gold question

SouthJamaica — Thu, 16 Jun 2022 15:47:52 GMT

@Slowlyrebuilding wrote:
Just to clarify I wasn't looking to transfer the gold limit. I have 3 Amex credit cards (2 Hilton and Bonvoy). I wanted to transfer the balance from 2 of them to the 3rd. When I try to do that now it denies the request due to having a preset limit on the gold.

It's not blocking you because you have the Gold.

It's blocking you because you're trying to do more than one.

You need to do one at a time, and space them out over at least a month.

Re: Closing Amex Gold question

Slowlyrebuilding — Thu, 16 Jun 2022 16:41:18 GMT

Although some would disagree I'm sure I was given the preset limit because I tried out the plan it feature on a large purchase. I'd had the card for over 8 years with no problem. I did the plan it for a purchase just to see how it worked and within a day or 2 was given the preset limit. I paid it off that month but it's been preset ever since

Re: Closing Amex Gold question

Slowlyrebuilding — Thu, 16 Jun 2022 16:43:25 GMT

I didn't try to do 2 at once. I tried with the one card first (Hilton to Hilton) and it went to a processing message. I received a letter in the mail specifically stating they wouldn't transfer the credit line because the Gold card has a preset limit.

Re: Closing Amex Gold question

jcooks — Thu, 16 Jun 2022 17:31:29 GMT

Have you tried reaching out to Amex why they put a preset spending limit if you used a feature that they're advertising on the card? Was there a missed payment? I don't see them putting a preset spending limit just because you used one of their features.

EDIT: could it be the charge offs that you're currently paying off from last year? Sounds like Amex took AA when some accounts were charged off. To answer your question, I have heard of them denying credit reallocations when something has spooked them.

Re: Closing Amex Gold question

Slowlyrebuilding — Thu, 16 Jun 2022 19:35:14 GMT

No late payments with Amex. All accounts are at zero monthly. I've never asked them about the preset because I didn't really care. Like i said in the first post I'm planning to close it either way because they got rid of the perks I used (airline credit and Uber eats membership) so I can no longer justify the annual fee. My only concern was whether the preset limit would affect overall utilization. I've done a lot of work getting it down.

Re: Closing Amex Gold question

wasCB14 — Thu, 16 Jun 2022 20:11:06 GMT

@Slowlyrebuilding wrote:
No late payments with Amex. All accounts are at zero monthly. I've never asked them about the preset because I didn't really care. Like i said in the first post I'm planning to close it either way because they got rid of the perks I used (airline credit and Uber eats membership) so I can no longer justify the annual fee. My only concern was whether the preset limit would affect overall utilization. I've done a lot of work getting it down.

I'm not currently up-to-date on AF refund policies for closed Gold cards, but if you plan to close soon anyway you might see if you can get a retention offer.

Re: Closing Amex Gold question

MrDisco99 — Fri, 17 Jun 2022 00:23:32 GMT

@Slowlyrebuilding wrote:
So a little less than a year ago my Amex Gold was given a preset spending limit. It wasn't a huge deal to me at the time but since then Amex has dropped the benefits from Gold that I use the most to justify the fee so I am thinking of closing. I have 3 other Amex credit cards. I wanted to transfer the credit limit from 2 of them to one and close. So essentially I would be down to 1 Amex card.
When I try to transfer the credit limit it says it's denied because the Gold has a preset spending limit.
I have 3 questions:
1) if I close Amex Gold will it affect my utilization or is it not calculated in?
2) has anyone had success closing a card with a preset spending limit and then being able to transfer credit limit?
3) does closing cards with Amex affect your ability to get approved with them in the future?

1) Charge cards do not affect utilization.

2) Never tried it.

3) Yes. Make sure you don't close any card you've had less than a year. If it has an annual fee, wait for the fee to post then cancel. They will refund the fee. Otherwise it should be fine. I've closed a lot more Amex cards than I currently have and they still approve me. I did close one card less than a year after I opened it and they put me in pop-up jail for a little while, but they eventually started approving me again.

Re: Closing Amex Gold question

jcooks — Fri, 17 Jun 2022 12:57:21 GMT

@MrDisco99 wrote:
@Slowlyrebuilding wrote:
So a little less than a year ago my Amex Gold was given a preset spending limit. It wasn't a huge deal to me at the time but since then Amex has dropped the benefits from Gold that I use the most to justify the fee so I am thinking of closing. I have 3 other Amex credit cards. I wanted to transfer the credit limit from 2 of them to one and close. So essentially I would be down to 1 Amex card.
When I try to transfer the credit limit it says it's denied because the Gold has a preset spending limit.
I have 3 questions:
1) if I close Amex Gold will it affect my utilization or is it not calculated in?
2) has anyone had success closing a card with a preset spending limit and then being able to transfer credit limit?
3) does closing cards with Amex affect your ability to get approved with them in the future?
1) Charge cards do not affect utilization.
2) Never tried it.
3) Yes. Make sure you don't close any card you've had less than a year. If it has an annual fee, wait for the fee to post then cancel. They will refund the fee. Otherwise it should be fine. I've closed a lot more Amex cards than I currently have and they still approve me. I did close one card less than a year after I opened it and they put me in pop-up jail for a little while, but they eventually started approving me again.

OP stated that he's had the card for years. He only had the preset spending limit put on the Gold card less than a year ago. If you don't see value in keeping the card, close it. Just keep in mind, you'd lose all your MR points unless you have another card that is in the MR points ecosystem.

Re: Closing Amex Gold question

jcooks — Fri, 17 Jun 2022 15:11:33 GMT

OP, is the reason for denial in reallocating limits is because the Gold has a preset spending limit?

Ultimately, I think because of the charged off acounts, Amex took AA and put the spending limit. I think the charged off accounts is the main culprit. So I think closing the Gold, they will still continue to deny reallocating limits.

Re: Closing Amex Gold question

Brian_Earl_Spilner — Fri, 17 Jun 2022 15:26:45 GMT

@SouthJamaica wrote:
@Slowlyrebuilding wrote:
Just to clarify I wasn't looking to transfer the gold limit. I have 3 Amex credit cards (2 Hilton and Bonvoy). I wanted to transfer the balance from 2 of them to the 3rd. When I try to do that now it denies the request due to having a preset limit on the gold.
It's not blocking you because you have the Gold.

It's blocking you because you're trying to do more than one.

You need to do one at a time, and space them out over at least a month.

No, it's blocking the reallocation because the op was flagged by Amex for AA. A preset spending limit is just one of the steps taken. Others include no credit limit increases, no new cards, and no ability to send referrals. Until the issue that caused the preset limit is resolved, op will not be able to reallocate limits.

Re: Closing Amex Gold question

NRB525 — Fri, 17 Jun 2022 15:43:14 GMT

@Slowlyrebuilding wrote:
I didn't try to do 2 at once. I tried with the one card first (Hilton to Hilton) and it went to a processing message. I received a letter in the mail specifically stating they wouldn't transfer the credit line because the Gold card has a preset limit.

Sorry to hear about the issues OP.

I'd close the Gold card, since you know you want to do that, and the $250 AF is a large issue.

Let the accounts flow for a few months, then try the CL transfer again.

How much are the limits on the Hiltons and Marriott cards? I remember a few years ago when I was trying to transfer limits, I could not transfer $10,000 of the limits but I could move $5,000 of the limits. I haven't ever had a hard limit on my charge cards ( not even sure I had an AMEX charge card at that time ) but I kept getting messages when the amounts were too large.

Re: Closing Amex Gold question

Slowlyrebuilding — Sun, 19 Jun 2022 14:35:28 GMT

@NRB525
The limits on the 2 Hilton are $2800 and the limit on the bonvoy is $2000. I'll take your advice and close the Amex and try again in a couple months.

Re: Closing Amex Gold question

SouthJamaica — Sun, 19 Jun 2022 16:04:18 GMT

@Brian_Earl_Spilner wrote:
@SouthJamaica wrote:
@Slowlyrebuilding wrote:
Just to clarify I wasn't looking to transfer the gold limit. I have 3 Amex credit cards (2 Hilton and Bonvoy). I wanted to transfer the balance from 2 of them to the 3rd. When I try to do that now it denies the request due to having a preset limit on the gold.
It's not blocking you because you have the Gold.

It's blocking you because you're trying to do more than one.

You need to do one at a time, and space them out over at least a month.
No, it's blocking the reallocation because the op was flagged by Amex for AA. A preset spending limit is just one of the steps taken. Others include no credit limit increases, no new cards, and no ability to send referrals. Until the issue that caused the preset limit is resolved, op will not be able to reallocate limits.

Thanks. I stand corrected.

Re: Closing Amex Gold question

Aim_High — Sun, 19 Jun 2022 18:45:37 GMT

@Veronik2019 wrote:
@Slowlyrebuilding wrote:
2) has anyone had success closing a card with a preset spending limit and then being able to transfer credit limit?
YOU CANNOT TRANSFER A CREDIT LIMIT THAT DOESN'T EXIST. CHARGE CARDS DON'T HAVE PRESET LIMITS.

While that's generally true, @Veronik2019, AMEX is known to sometimes place hard limits on their charge cards. It's been discussed on numerous threads in the forum by multiple members who had preset limits.

I think you've gotten good advice already @Slowlyrebuilding. Closing the Gold will not affect utilization and as @Brian_Earl_Spilner mentioned, the preset spending limit on the Gold is more of a symptom of their concern of your profile than the root cause of the inability to move limits. I agree that closing the Gold and then waiting may improve your odds of later consolidating limits.

Re: Closing Amex Gold question

jcooks — Mon, 20 Jun 2022 12:40:03 GMT

Keep in mind, if you close the Gold and don't have any other cards that are in the MR points system, you will forfeit all MR points. Use it before closing our the card.