topic Re: Cancel AMEX PRG? in Credit Cards

Cancel AMEX PRG?

ACsteel — Sun, 10 Feb 2013 15:07:27 GMT

I was wondering if I should cancel my AMEX PRG? For the following reasons:

Annual fee of 175
I only travel once if most twice a year, but the round trip for each of those trips are cheap, only like 350.00 round trip.
I already have an AMEX credit card with a generous limit.

Why I'm hesistating to cancel:

I heard 10% of FICO score is diversified credit, does not having the charge card really impact that 10% a lot?
Am I missing a potential pro of keeping this card that my AMEX credit card cannot do for me

Would like to hear your opinions, but that annual fee of 175 doesn't seem to be worth it to me since I don't travel much and I only get 1MR pt for all other purchases. Thanks!

Re: Cancel AMEX PRG?

thom02099 — Sun, 10 Feb 2013 15:38:51 GMT

@angelnyc wrote:
I was wondering if I should cancel my AMEX PRG? For the following reasons:

Annual fee of 175
I only travel once if most twice a year, but the round trip for each of those trips are cheap, only like 350.00 round trip.
I already have an AMEX credit card with a generous limit.
Why I'm hesistating to cancel:
I heard 10% of FICO score is diversified credit, does not having the charge card really impact that 10% a lot?
Am I missing a potential pro of keeping this card that my AMEX credit card cannot do for me
Would like to hear your opinions, but that annual fee of 175 doesn't seem to be worth it to me since I don't travel much and I only get 1MR pt for all other purchases. Thanks!

Since the AF is high, one thing you could consider is perhaps a PC to the regular Gold or the Green, to reduce the amount of the AF.

What was your motivation to get this card rather than one of the above? Were you planning to travel more than what's actually happened? I considered applying for it too, but couldn't justify the AF versus the other cards that I have in my portfolio that could be used for travel.

Re: Cancel AMEX PRG?

ACsteel — Sun, 10 Feb 2013 18:18:35 GMT

@thom02099 wrote:
@angelnyc wrote:
I was wondering if I should cancel my AMEX PRG? For the following reasons:

Annual fee of 175
I only travel once if most twice a year, but the round trip for each of those trips are cheap, only like 350.00 round trip.
I already have an AMEX credit card with a generous limit.
Why I'm hesistating to cancel:
I heard 10% of FICO score is diversified credit, does not having the charge card really impact that 10% a lot?
Am I missing a potential pro of keeping this card that my AMEX credit card cannot do for me
Would like to hear your opinions, but that annual fee of 175 doesn't seem to be worth it to me since I don't travel much and I only get 1MR pt for all other purchases. Thanks!
Since the AF is high, one thing you could consider is perhaps a PC to the regular Gold or the Green, to reduce the amount of the AF.
What was your motivation to get this card rather than one of the above? Were you planning to travel more than what's actually happened? I considered applying for it too, but couldn't justify the AF versus the other cards that I have in my portfolio that could be used for travel.

That reason was really to get in with AMEX, but now that I have an AMEX credit card, due to my aforementioned traveling habits, I'm not sure if having any of the AMEX charge cards are worth it due to the Annual Fees. Also I'm not planning on traveling more then I do now.

Re: Cancel AMEX PRG?

Walt_K — Sun, 10 Feb 2013 18:23:37 GMT

You should probably cancel. This card is great if you spend a lot on airfare and/or can spend more than $30K/year on the card. Otherwise, it's really not worth it.

Re: Cancel AMEX PRG?

ACsteel — Sun, 10 Feb 2013 18:36:43 GMT

@Walt_K wrote:
You should probably cancel. This card is great if you spend a lot on airfare and/or can spend more than $30K/year on the card. Otherwise, it's really not worth it.

Thanks Walt I'm feeling the same way, I guess if a few more of our "Credit Gurus" on here concur with this opinion, I probably will.

Re: Cancel AMEX PRG?

FutureBillionaire — Sun, 10 Feb 2013 18:55:23 GMT

@angelnyc wrote:
@Walt_K wrote:
You should probably cancel. This card is great if you spend a lot on airfare and/or can spend more than $30K/year on the card. Otherwise, it's really not worth it.
Thanks Walt I'm feeling the same way, I guess if a few more of our "Credit Gurus" on here concur with this opinion, I probably will.

I'm in the same boat. If we have two Amex cards, I think that we don't lose the AAoA benefit. I've never used the travel benefits. I use other cards to pay for my flights. I just hate cancelling cards.

Re: Cancel AMEX PRG?

Revelate — Sun, 10 Feb 2013 19:08:56 GMT

A charge card is counted as a revolving account. It doesn't affect mix of credit any more than a standard credit (or store) card would.

I agree with Walt's opinion completely; there was a good writeup on the rewards and the required expenditure to make the AF worthwhile a few months ago (which I now despair of finding unfortunately through our search interface), and unless you ran roughly 2K/mo through the card, or more as Walt intimates, it just wasn't worth it.

Unless the AF is trivial to you (and it wouldn't be for me at least) I'd recommend you close it in this case.

Re: Cancel AMEX PRG?

FutureBillionaire — Sun, 10 Feb 2013 19:10:12 GMT

And there we have it.

Re: Cancel AMEX PRG?

ACsteel — Sun, 10 Feb 2013 19:33:46 GMT

@Revelate wrote:
A charge card is counted as a revolving account. It doesn't affect mix of credit any more than a standard credit (or store) card would.

I agree with Walt's opinion completely; there was a good writeup on the rewards and the required expenditure to make the AF worthwhile a few months ago (which I now despair of finding unfortunately through our search interface), and unless you ran roughly 2K/mo through the card, or more as Walt intimates, it just wasn't worth it.

Unless the AF is trivial to you (and it wouldn't be for me at least) I'd recommend you close it in this case.

Thanks Revelate, as always you come through with great advice. It's good to know that the charge card will not have an affect on diversity of my credit. I do not use 2K/mo with the card so I guess I cash in on the points I have on it now and cancel in the following month or two.

Re: Cancel AMEX PRG?

ceemee2203 — Sun, 10 Feb 2013 19:55:28 GMT

I'd try getting the annual fee removed before cancelling the card, if you've been a good customer, they might work with you.

Re: Cancel AMEX PRG?

Walt_K — Sun, 10 Feb 2013 20:07:02 GMT

@ceemee2203 wrote:
I'd try getting the annual fee removed before cancelling the card, if you've been a good customer, they might work with you.

I believe Amex typically refunds a prorated portion of the AF. If you're talking about getting them to waive for the following year for continued membership, they might offer some sort of retention bonus. YMMV. I was going to cancel my Platinum card when my travel slowed down at work and they gave me 25K MR points to keep it open.

Re: Cancel AMEX PRG?

FutureBillionaire — Sun, 10 Feb 2013 20:27:26 GMT

I was going to cancel my card and they gave me double mr points on all of my purchases for 3 months. I'm going to cancel and see if they do something.

Re: Cancel AMEX PRG?

Anonymous — Sun, 10 Feb 2013 22:38:40 GMT

Hello, Ive been lurking around on these boards for sometime now. Finally decided to joint the club -

In regards to the cancellation of a AMEX gold. I was very apprehensive upon my Amex Gold approval. Reasons being. It was a charge card, the cost of the annual fee after the introductory peroid, and the fact that I've watched these boards for months now and heard alot of horror stories haaha..

None the less. I thought, the first year there would be no AF. I wanted to get in with AMEX also. But didnt travel as much for work. So the AMEX PRG wasnt needed.

However- it has been nothing but good to me, I use as I would a debit card. I keep mine for this reason alone. When I shop or use my debit card or cash, I dont earn points for potential cash back or rewards. Thus why, I will always keep at least one amex charge card in my line up.

I hope to continue to learn from all of you on these boards.

Re: Cancel AMEX PRG?

jsucool76 — Sun, 10 Feb 2013 22:46:17 GMT

The only times the charge cards are a good investment (other than the first year (waived AF and sign up bonuses) is if you travel a lot, and spend a lot and dont want to raise your util. Other than that the amex revolvers are really the best choice.

Re: Cancel AMEX PRG?

Anonymous — Sun, 10 Feb 2013 22:58:43 GMT

Jsucool76- this is true, excellent advice.

I have used my AMEX as a budgeting tool since I got it. So I do spend quiet a bit each month. I set up almost all my bills on the AMEX to be charged each month and then I PIF. I run well over $1,500 on it each month and have started to rack up some nice points already. I dont travel alot, but when I do the points Ive gained each month will come in handy. It also comes in handy for other things. By the time the AF comes around, I'll have enough points to justify having it in my wallet.

Its also great for extra insurance on larger purchases. Whenever a retailer online or off seems shady, I pay wth my AMEX because there customer service is awesome. Peace of mine for me.. that is worth the $125 for me.. but to each there own.

Its all about makeing the cards work for you.

Re: Cancel AMEX PRG?

nagisa — Mon, 11 Feb 2013 01:32:15 GMT

I keep wondering if I should do the same, now that I have a huge (for my needs anyway) CL on my BCP. I do travel a fair amount (usually once a month if not more often), but I bet I don't collect enough 3x MR points to offset the AF. Currently I do run everything that's not gas/amazon/groceries/restaurants through my PRG, but I wonder if I should use my BCP instead.

So far I haven't spent a single MR point yet... havent really found anything I want yet lol. That said I do like the design lol, but I'm not sure it's worth $175 just to look at a pretty card.

Re: Cancel AMEX PRG?

FutureBillionaire — Mon, 11 Feb 2013 15:46:29 GMT

@nagisa wrote:
I keep wondering if I should do the same, now that I have a huge (for my needs anyway) CL on my BCP. I do travel a fair amount (usually once a month if not more often), but I bet I don't collect enough 3x MR points to offset the AF. Currently I do run everything that's not gas/amazon/groceries/restaurants through my PRG, but I wonder if I should use my BCP instead.

So far I haven't spent a single MR point yet... havent really found anything I want yet lol. That said I do like the design lol, but I'm not sure it's worth $175 just to look at a pretty card.

I have too many cards that get better cash back. I only use the MR points towards entertainment tix. I have gotten early access to events, which is nice. I could probably justify keeping this card if they still had a rewards mall. I cannot fathom how they closed it without a communication.

Regarding the mall, it seems that Amex should have a mall with higher end stores such as Louis Vuitton and Burberry.