A move of substance or just superficial?

[CluelessCredit]

I currently have three credit cards.  They are listed in my signature, but for ease of reference they are as follows:

BoA Amex - 10k (since 2009)

Chase Freedom - 7k (since 2011)

Discover IT - 9k (since 2013)

I only really use the Chase and Discover and I PIF every month.  The BoA Amex was SD'd long ago and only is used for a re-occurring Netflix subscription.

I was advised by a family member that it would be in my best interest to get rid of the BoA Amex, and look into getting an actual AMEX card for back dating purposes.  My question is - is the back dating feature worth it?  I wouldn't really use the AMEX for anything, as I'm perfectly fine with my Discover and Freedom; however, in the future an AMEX might be an attractive card to me.  Currently, I have two years left on my 12 year endeavor to pay off my student loans (92k down to just under 30k).  I recently achieved what was needed with my FICO score to refinance my loans down to a lower rate. I won't need my FICO score for any major purchases for at least two years. Right now I can afford the hit to my score/AAoA if this is the right move to make.

Any advice is appreciated.

[Anonymous]

In this case, I don't think you could backdate, because AMEX is not the card issuer, they are just the processing network. You would have had to have a card issued by American Express (not Bank of America with the AMEX logo on the card) in order to take advantage of backdating.

That being said, it has a high credit limit and it's your oldest account, so unless you hate BofA, you might as well keep it. My Bank of America card is my oldest account, and I only have one automatic charge every month on it, but I use my other cards for everything else.

[Anonymous]

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@Anonymous wrote:

In this case, I don't think you could backdate, because AMEX is not the card issuer, they are just the processing network. You would have had to have a card issued by American Express (not Bank of America with the AMEX logo on the card) in order to take advantage of backdating.

That being said, it has a high credit limit and it's your oldest account, so unless you hate BofA, you might as well keep it. My Bank of America card is my oldest account, and I only have one automatic charge every month on it, but I use my other cards for everything else.

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+1.  If you had an actualy Amex before then yes for backdating to help your AAoA.  If not, don't even bother.

[Anonymous]

The previous posters have correctly pointed out that you will not back date now, but not sure that is your question.   If you think an Amex will be useful in the future, and want to take advantage of backdating then 9ie. a second Amex) , yes, opening  a real Amex when you can take the score hit can make sense.   But it depends on your AAoA now  (getting a card now might considerably shorten it, depending on the usual factors) and when you think you might want a Amex to actually use.

But unless you get a lot of cards frequently (which you haven't been doing) IMO backdating isn't that important, certainly not worth enough to get a card you don't really need.

[Anonymous]

Why not look into an Amex that may be useful for you, for example the blue cash everyday card. It has 3% on groceries, 2% on gas & department stores, and 1% on everything else. Use this when gas and groceries aren't in the revolving categories, then you can back date in the future if necessary.

[CreditUnionFan]

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@CluelessCredit wrote:

I currently have three credit cards.  They are listed in my signature, but for ease of reference they are as follows:

BoA Amex - 10k (since 2009)

Chase Freedom - 7k (since 2011)

Discover IT - 9k (since 2013)

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What folks talk about Backdating refers to American Express issued cards, so the BoA Amex wouldn't affect any backdating.

That being said, I might consider applying for an Amex-backed card to start the MSD, for future backdating, should you want it. Amex has several non-AF cards. My own two favorites are the "Old" Blue Cash and Blue Sky.

Paying down $92k to $30k is quite an accomplishment; kudos! Lenders notice that, as does Fico in the great 805 score.

[takeshi74]

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@CluelessCredit wrote:

My question is - is the back dating feature worth it?

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Subjective just as worth is on any topic.  I find it worth it but my MSD was established in 1998 so if I get a new card today it would report as a 17 year old account.  In your case you'd be establishing your MSD.  It could benefit you in future but I'm not sure I'd say that opening an AmEx that you otherwise have no use for would be worth it to you.  Utlimately it's your call to make.  If you want to leverage backdating in future then you'll want to establish your MSD.

[CluelessCredit]

To be a bit more clear as one poster alluded to, I'm not trying to back date the BoA AMEX.  I was instead questioning whether it would be worth it to drop the BoA AMEX (cut it up), and apply for an actual issued by AMEX ... AMEX?  The rationale being that once I'm debt free in a couple of years, I plan to travel etc.  Around that time I may also start considering the purchase of a home.  So, would it make more sense to go ahead and get something like the AMEX Blue Cash now, so that in two years should I want to change to a travel card; I would have the option to back date.  Then there would be no fear of a future hit to the FICO score when I might actually need it.

I am making the assumption that it would be best to do away with the BoA Amex because I believe (might be wrong) that there is such as thing as too much available credit.  I currently only bring in about 80k before taxes.  I don't know how agencies would view having something around 30k in available credit.  Maybe I should apply for the AMEX Blue Cash and just seek a really small CL, as I don't plan to use it for much anyway?

Also, I would like to pause and thank the community at large thus far.  While I haven't contributed much to the forums, the information I've learned here has enabled to move from having no credit and only SL debt; to almost being debt free with a strong FICO score!  It really is appreciated.

[takeshi74]

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@CluelessCredit wrote:

I am making the assumption that it would be best to do away with the BoA Amex because I believe (might be wrong) that there is such as thing as too much available credit.

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Has that been cited as an issue for you?  What is considerd "too much" can vary by creditor as well.

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@CluelessCredit wrote:

I am making the assumption that it would be best to do away with the BoA Amex because I believe (might be wrong) that there is such as thing as too much available credit.  I currently only bring in about 80k before taxes.  I don't know how agencies would view having something around 30k in available credit.

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Impossible to say based solely on available credit and income.  Many have multiples of their income.  Some qualify for only a fraction of their income.

It's not really the CRA's that matter as much as the creditors.

[CluelessCredit]

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@takeshi74 wrote:

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@CluelessCredit wrote:

I am making the assumption that it would be best to do away with the BoA Amex because I believe (might be wrong) that there is such as thing as too much available credit.

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Has that been cited as an issue for you?  What is considerd "too much" can vary by creditor as well.

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@CluelessCredit wrote:

I am making the assumption that it would be best to do away with the BoA Amex because I believe (might be wrong) that there is such as thing as too much available credit.  I currently only bring in about 80k before taxes.  I don't know how agencies would view having something around 30k in available credit.

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Impossible to say based solely on available credit and income.  Many have multiples of their income.  Some qualify for only a fraction of their income.

It's not really the CRA's that matter as much as the creditors.

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Ahhh, I always assumed there was some formula used.  I suppose I'll just give it a try.  Worst case scenario I get declined, and then I would know for sure if the "too much available credit" was a real thing or not.  I'm going strongly consider just applying for the AMEX Blue Cash for now.  I don't much care about the limit so much as I get an actual AMEX on the books.  I will hold on to the BoA AMEX and see how it all plays out.  Thanks for the assistance.