cancel
Showing results for 
Search instead for 
Did you mean: 

AMEX ED vs EDP: Downgrade? CLD?

tag
Absolution16
Frequent Contributor

Re: AMEX ED vs EDP: Downgrade? CLD?

@NoHardLimits 

 

Ah... so something like this then?

 

Screenshot_20230311_113051_Brave.jpg

 

So churning, in this case, would be to upgrade this BCE to BCP, use it for 1 year while obtaining the $150 bonus, then downgrade back to BCE before the AF hits, and then, look for another upgrade offer back to BCP, rinse & repeat?

 

Interesting concept.

Message 11 of 22
NoHardLimits
Established Contributor

Re: AMEX ED vs EDP: Downgrade? CLD?


@Absolution16 wrote:

@NoHardLimits 

 

Ah... so something like this then?

 

Screenshot_20230311_113051_Brave.jpg

 

So churning, in this case, would be to upgrade this BCE to BCP, use it for 1 year while obtaining the $150 bonus, then downgrade back to BCE before the AF hits, and then, look for another upgrade offer back to BCP, rinse & repeat?

 

Interesting concept.


Yes, your example is a type of targeted offer.  Even if you previously had the Blue Cash Preferred card, the targeted offer would still make you eligible to collect an upgrade bonus.  However, you must take care to not close the account for at least one year.  Yes, that means you would have to pay some of the annual fee which would cut into the full value of the upgrade bonus.  It's up to you to decide when a targeted offer is worth taking.  For example, the last upgrage offer I got to go from ED to EDP was 40,000 points.  That was worthwhile even with a $95 annual fee.

 

Do some reading about the Amex RAT team.  That is the Rewards Abuse Team that monitors whether or not people are using an offer as Amex intended.  There are many instances where bonuses have been "clawed back" when Amex determines that someone has run afoul of the terms of the offer.  One of the things that could trigger such an action would be if you downgraded your card before a full year.  To be safe, some of us will keep an upgraded card until we have paid a full annual fee and not just a prorated portion.

July 2024 Scorecard: Clean, Thick, Mature, New Revolver
FICO8:
FICO9:
VantageScore3:
Inquiries (n/12, n/24):
AAoA: 11 yrs | AoORA: 37 yrs | AoYRA: less than 1 yr | New Accounts: 1/6, 1/12, 3/24 | Util: 1% | DTI: 1%
Message 12 of 22
Absolution16
Frequent Contributor

Re: AMEX ED vs EDP: Downgrade? CLD?

@NoHardLimits 

 

That was very handy information.  I will keep it to heart.  Thank you!

 

Message 13 of 22
Absolution16
Frequent Contributor

Re: AMEX ED vs EDP: Downgrade? CLD?

@longtimelurker 

@wasCB14 

@SouthJamaica 

@NoHardLimits 

And anyone else that may want to chime in:

 

If I were to decide to downgrade my 20.5K CL EDP to ED, and plan on only using that downgraded ED sparingly just to keep the account open, do any of you suggest that I transfer some or most of the 20.5K CL into my 9K CL BCE?  Maybe as drastic as move ALL but 1K CL?

 

My EDP is due for an AF in a couple of months, and if I do the downgrade, I will surely not use the ED much, if at all.  BCE still will have uses though because it still has good enough cashback rewards for groceries, gas, and online shopping.  I figure that if ED is gonna get the SD treatment with small and rare spend every few months, maybe it might be safer to make that a 1K CL card?

 

One thing that concerns me though, on that approach, is the fact of having a No-AF BCE with a 28.5K CL.  Not sure if that is smart or not.

 

What do you all think?

Message 14 of 22
SouthJamaica
Mega Contributor

Re: AMEX ED vs EDP: Downgrade? CLD?


@Absolution16 wrote:

@longtimelurker 

@wasCB14 

@SouthJamaica 

@NoHardLimits 

And anyone else that may want to chime in:

 

If I were to decide to downgrade my 20.5K CL EDP to ED, and plan on only using that downgraded ED sparingly just to keep the account open, do any of you suggest that I transfer some or most of the 20.5K CL into my 9K CL BCE?  Maybe as drastic as move ALL but 1K CL?

 

My EDP is due for an AF in a couple of months, and if I do the downgrade, I will surely not use the ED much, if at all.  BCE still will have uses though because it still has good enough cashback rewards for groceries, gas, and online shopping.  I figure that if ED is gonna get the SD treatment with small and rare spend every few months, maybe it might be safer to make that a 1K CL card?

 

One thing that concerns me though, on that approach, is the fact of having a No-AF BCE with a 28.5K CL.  Not sure if that is smart or not.

 

What do you all think?


I wouldn't, unless you're planning to make giant purchases on the BCE, which seems unlikely, or carry a balance on it, which seems even more unlikely.


Total revolving limits 650200 (530700 reporting) FICO 8: EQ 708 TU 714 EX 715

Message 15 of 22
Absolution16
Frequent Contributor

Re: AMEX ED vs EDP: Downgrade? CLD?

@SouthJamaica 

 

Then you'd suggest just leaving the CLs as they are, even if the EDP gets the downgrade and SD treatment?

 

I am not sure what the safest and the most optimal way to go about this.  I currently don't have any need to spend these MR points right now....

Message 16 of 22
wasCB14
Super Contributor

Re: AMEX ED vs EDP: Downgrade? CLD?


@Absolution16 wrote:

@longtimelurker 

@wasCB14 

@SouthJamaica 

@NoHardLimits 

And anyone else that may want to chime in:

 

If I were to decide to downgrade my 20.5K CL EDP to ED, and plan on only using that downgraded ED sparingly just to keep the account open, do any of you suggest that I transfer some or most of the 20.5K CL into my 9K CL BCE?  Maybe as drastic as move ALL but 1K CL?

 

My EDP is due for an AF in a couple of months, and if I do the downgrade, I will surely not use the ED much, if at all.  BCE still will have uses though because it still has good enough cashback rewards for groceries, gas, and online shopping.  I figure that if ED is gonna get the SD treatment with small and rare spend every few months, maybe it might be safer to make that a 1K CL card?

 

One thing that concerns me though, on that approach, is the fact of having a No-AF BCE with a 28.5K CL.  Not sure if that is smart or not.

 

What do you all think?


Personally, I wouldn't bother reallocating. I only care about CLs on cards that get significant spend.

Personal spend: Amex Gold, Amex Schwab Plat., BofA PR+CCR(x2), Costco
Business use: Amex Bus. Plat., BBP, Lowes Amex AU, CFU AU
Perks: Delta Plat., United Explorer, IHG49, Hyatt, "Old SPG"
Mostly SD: Freedom Flex, Freedom, Arrival
Upgrade/Downgrade games: ED, BCE
SUB chasing: AA Platinum Select
Message 17 of 22
Absolution16
Frequent Contributor

Re: AMEX ED vs EDP: Downgrade? CLD?

@wasCB14 

 

How about with the assumptions that:

 

1. all my spending on my current EDP get absorbed by BCE

 

and

 

2. downgraded ED gets the SD treatment with a tiny purchase maybe every quarter?

Message 18 of 22
wasCB14
Super Contributor

Re: AMEX ED vs EDP: Downgrade? CLD?


@Absolution16 wrote:

@wasCB14 

 

How about with the assumptions that:

 

1. all my spending on my current EDP get absorbed by BCE

 

and

 

2. downgraded ED gets the SD treatment with a tiny purchase maybe every quarter?


How much spend would BCE be getting per year between supermarkets and eligible online shopping?

 

*And do you have a 2%+ card or anything like that?

Personal spend: Amex Gold, Amex Schwab Plat., BofA PR+CCR(x2), Costco
Business use: Amex Bus. Plat., BBP, Lowes Amex AU, CFU AU
Perks: Delta Plat., United Explorer, IHG49, Hyatt, "Old SPG"
Mostly SD: Freedom Flex, Freedom, Arrival
Upgrade/Downgrade games: ED, BCE
SUB chasing: AA Platinum Select
Message 19 of 22
Absolution16
Frequent Contributor

Re: AMEX ED vs EDP: Downgrade? CLD?

@wasCB14 

 

Between groceries and online shopping, excluding gas, I'd say between 1K to 2K, with $500 (considering the 6K annual cap) on groceries reached quite easily.

 

EDP has grossly high CL for my spend on groceries.  I don't "need" it that desperately, but I certainly don't want a CLD/AA/closure either.

 

2+% cards? I have a psudo-2% card in Apple Card.  I was searching around the forums about these 2+% cards to see what are out there.  If I were to get one, it needs to be No-AF, No-FTF.  Alliant and PenFed seem to have one of these, but I am reading a lot of negativity with these CUs.

Message 20 of 22
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.