topic Re: Fees in Credit Cards

Fees

scarfa21 — Thu, 16 Nov 2023 00:54:28 GMT

Hey all Amex just raised my hilton card from 99 to 129 or some crap. I have a feeling they will raise all of my cards I'm paying yearly for. Is it that bad to close these? About 4 years old. Thanks

Re: Fees

ChargedUp — Thu, 16 Nov 2023 01:45:08 GMT

Depends on a lot of factors... Will you still find value in your Amex cards if the fee goes up? Are you carrying any balances where you need the utilization cushion that your Amex cards bring to your profile? Do you have other cards already that you could use in place of Amex if needed or desired?

I know Amex has been playing a shell game with AF's and card benefits lately, and you're certainly not the only person questioning the value of any of their cards lately... In the end, you're the only person who can say whether they're worth keeping or not.

Re: Fees

Anonymous — Thu, 16 Nov 2023 02:56:32 GMT

@ChargedUp wrote:
Depends on a lot of factors... Will you still find value in your Amex cards if the fee goes up? Are you carrying any balances where you need the utilization cushion that your Amex cards bring to your profile? Do you have other cards already that you could use in place of Amex if needed or desired?

I know Amex has been playing a shell game with AF's and card benefits lately, and you're certainly not the only person questioning the value of any of their cards lately... In the end, you're the only person who can say whether they're worth keeping or not.

This. Basically raising an annual fee (not to often) is probably the easiest way for an issuer to get some more money. Cutting/changing rewards creates complaints, but hey "You liked the card at $95, it's still pretty good for just a tiny bit more, right?" Of course, this is a large percent increase but only a smallish actual amount ("for the WHOLE YEAR!!!"). When Amex (Plat amoung others) and Chase (CSR) did $100+ increases, that did create a backlash

Re: Fees

SouthJamaica — Thu, 16 Nov 2023 04:45:00 GMT

@scarfa21 wrote:
Hey all Amex just raised my hilton card from 99 to 129 or some crap. I have a feeling they will raise all of my cards I'm paying yearly for. Is it that bad to close these? About 4 years old. Thanks

You could always downgrade it to the no-annual-fee Hilton card if you feel the new AF is too much.

Re: Fees

scarfa21 — Fri, 17 Nov 2023 15:07:46 GMT

I have 4 cards with them, really dont need it, Ill use up my Hilton points before the fees kick in. No balances with them usually. Im just wondering about a hit to my score.

Thanks for the reply.

Re: Fees

pizzadude — Fri, 17 Nov 2023 15:19:51 GMT

@scarfa21 wrote:
I have 4 cards with them, really dont need it, Ill use up my Hilton points before the fees kick in. No balances with them usually. Im just wondering about a hit to my score.

Thanks for the reply.

Closing a card will only negatively impact your score if your revolving utilization increases as a result of having either higher overall utilization or more accounts with balances.

Re: Fees

scarfa21 — Fri, 17 Nov 2023 15:25:13 GMT

@pizzadude wrote:
@scarfa21 wrote:
I have 4 cards with them, really dont need it, Ill use up my Hilton points before the fees kick in. No balances with them usually. Im just wondering about a hit to my score.

Thanks for the reply.
Closing a card will only negatively impact your score if your revolving utilization increases as a result of having either higher overall utilization or more accounts with balances.

ohhh perfect, that def wont happen. Appreciate it.

Re: Fees

SouthJamaica — Fri, 17 Nov 2023 15:36:16 GMT

@scarfa21 wrote:
I have 4 cards with them, really dont need it, Ill use up my Hilton points before the fees kick in. No balances with them usually. Im just wondering about a hit to my score.

Thanks for the reply.

Closing the account won't affect your aging factors at the moment. As long as the closed account continues to appear in your credit reports, it's factored into the aging metrics. Typically they stay in the reports around 10 years or so, but sometimes drop out sooner, and sometimes stay in longer.

But as @pizzadude mentions, it could affect your scores if closing it makes any significant increase in your aggregate revolving utilization percentage.

Re: Fees

scarfa21 — Fri, 17 Nov 2023 15:43:37 GMT

@SouthJamaica wrote:
@scarfa21 wrote:
I have 4 cards with them, really dont need it, Ill use up my Hilton points before the fees kick in. No balances with them usually. Im just wondering about a hit to my score.

Thanks for the reply.
Closing the account won't affect your aging factors at the moment. As long as the closed account continues to appear in your credit reports, it's factored into the aging metrics. Typically they stay in the reports around 10 years or so, but sometimes drop out sooner, and sometimes stay in longer.

But as @pizzadude mentions, it could affect your scores if closing it makes any significant increase in your aggregate revolving utilization percentage.

Thanks for the reply, my utilization is 2% give or take.

Re: Fees

SouthJamaica — Fri, 17 Nov 2023 16:43:17 GMT

@scarfa21 wrote:
@SouthJamaica wrote:
@scarfa21 wrote:
I have 4 cards with them, really dont need it, Ill use up my Hilton points before the fees kick in. No balances with them usually. Im just wondering about a hit to my score.

Thanks for the reply.
Closing the account won't affect your aging factors at the moment. As long as the closed account continues to appear in your credit reports, it's factored into the aging metrics. Typically they stay in the reports around 10 years or so, but sometimes drop out sooner, and sometimes stay in longer.

But as @pizzadude mentions, it could affect your scores if closing it makes any significant increase in your aggregate revolving utilization percentage.
Thanks for the reply, my utilization is 2% give or take.

Then it doesn't appear that closing the card would have any near term effect.

Re: Fees

scarfa21 — Fri, 17 Nov 2023 17:00:10 GMT

@SouthJamaica wrote:
@scarfa21 wrote:
Hey all Amex just raised my hilton card from 99 to 129 or some crap. I have a feeling they will raise all of my cards I'm paying yearly for. Is it that bad to close these? About 4 years old. Thanks
You could always downgrade it to the no-annual-fee Hilton card if you feel the new AF is too much.

I have that one. Thanks

Re: Fees

Aim_High — Sat, 18 Nov 2023 22:02:13 GMT

@scarfa21 wrote:
Hey all Amex just raised my hilton card from 99 to 129 or some crap. I have a feeling they will raise all of my cards I'm paying yearly for. Is it that bad to close these? About 4 years old. Thanks

It sounds like you have the Hilton Surpass (previously $95 and going to increase to $150?) @scarfa21. I have that card. Normally, when lenders raise the fees, they scramble the benefits to help justify the fee. That may help some who hold the card, while others may not benefit at all. I've heard a lot of complaints about the change but it mainly depends on how often you stay at a Hilton. In my case, I'm already getting great value back as I've had some AMEX credits already. And I haven't even paid the new AF yet!

They previously had $0 in annual credits for Hilton property stays, only the free night which you could earn after $15K annual spend. While the new AF is $45 higher, it also includes up to $50 each quarter in direct account credits against Hilton charges. If they were all used, that means the card adds $50 in annual benefit above the annual fee which is a great deal for regular customers. For those who stay three out of four quarters, the AF is basically fully refunded, which it was not previously refunded at all. Even if a cardholder only stays ONE quarter out of the year and spends at least $50, their annual fee is essentially the same as the prior $95 AF. ($150 - $50 = $100 versus $95.) So really, unless you have the card but never stay at Hiltons, the AF increase is mostly a wash IMO.