Re: Advice Needed on closing AMEX GOLD

drave199 · ‎11-28-2020

So I am about done with year two on my amex gold. I'm thinking of closing it before the AF comes up in January. I have litterally used the card maybe twice this year given the lack of eating out. Also, I realized I get a better return on groceries (and everything else) using my amex BCP. The BCP is basically my exclusive card lately except when I go to costco which I use my BofA cash rewards (2% back). Ill be honest in that I probably jumped the gun on getting the Gold because it was a new shiny metal card and it sounded good. I really dont travel at all either. Mistakes were made in the desicion but you live and learn. I did use it quite a bit the first year and more than met the SUB. I just dont see a reason to re-up it again. I already called and checked and there currently isn't a promo to waive the AF, which I didnt expect anyways from what I read. There also wasn't any promos for points or anything to potenially offset the AF. I know I'll get over not having it in my wallet anymore, although it hasn't been pulled out much anyways lol. It's just nice to look at and gives you that "flex factor" lol.

So one concern is what it'll do to my credit if I close it? With it being a charge card and not going against my utilization, I imagine it wont affect it to much?

The other concern, and the MAIN one for this thread, is what to do with the points?? This is where I really need your advice! I currently have about 83K points (which I know probably isn't much) but I have no idea what to do with them. As mentioned, I dont travel and I dont currently have any other travel CCs (ie Hilton or Delta) to transfer the points to. FWIW, I do have one of those free Hilton Honors accounts that I assume I could transfer the points to, but when they would get used is a mystery. Plus I really prefer the IHG hotels but thats on the Chase side of things. I know there are other ways to redeem them (gift cards, pay with points, statement credit) but the return on them is low. The best gift card offer I remember seeing was a $1000 Home Depot card for 80K points earlier this year. I'm pissed that I didn't do that as thats one I could have really used given I bought a house earlier this year and would have been useful. (still would if it came back). I know I could downgrade to the Green and pay a lower AF and keep the points but I would have the same issue with the perks not being worth it vs the BCP unless I suddenly starting eating out again, which I doubt will happen.

So with that said, what advice do you have for me? Any outside the box ideas I'm not thinking of? I really appreciate your help!

TheFIGuy · ‎11-28-2020

Hey @drave199,

Do you own a business or have Sole Prop abilities? If so, you can apply for a BBP card, and once approved, close the AMEX Gold card keeping the MR points for when/if you venture back into the MR world. I cash-out my MR points quarterly with the Rakuten deposits into my Schwab Brokerage then Checking account. But I also do my banking with Schwab (who is AWESOME).

I do not have a good suggestion for cashing out the MR points that would yield quality redemption. Sorry, buddy!

drave199 · ‎11-28-2020

@TheFIGuy wrote:
Hey @drave199,

Do you own a business or have Sole Prop abilities? If so, you can apply for a BBP card, and once approved, close the AMEX Gold card keeping the MR points for when/if you venture back into the MR world. I cash-out my MR points quarterly with the Rakuten deposits into my Schwab Brokerage then Checking account. But I also do my banking with Schwab (who is AWESOME).

I do not have a good suggestion for cashing out the MR points that would yield quality redemption. Sorry, buddy!

No don't own a business. Thanks for the thought though!

Anonymous · ‎11-28-2020

OP if I was in your shoes I would apply for the no annual fee everyday card from Amex which earns MR points first before cancelling the gold card. Once approved for the ED you can keep the MR points alive by buying a single item at a dollar tree once every 3 months or so to keep your acccount active and this means you don't have to worry about losing the 83k MR points you have. After you get the ED card go ahead and cancel the gold card. This gets rid of the annual fee problem and your immediate worry about how to best use MR points.

dogmeat · ‎11-28-2020

Closing the Gold card will likely have no or very little impact on your credit - depending on how many other cards you have. Three remaining cards would be enough.

83K is actually a good amount of MR - over $1000 in high value travel redemption. You may still be able to squeak out $800, though, if you can buy HD gift cards at 1cpp valuation - say, a $500, $250, and $50 GC for 80K points. I have never bought gift cards with MR so I don't know what the normal redemption values are.

if you just want to be done with them you could get ~$500 value from 83K MR on Amazon.

longtimelurker · ‎11-29-2020

@Anonymous wrote:
OP if I was in your shoes I would apply for the no annual fee everyday card from Amex which earns MR points first before cancelling the gold card. Once approved for the ED you can keep the MR points alive by buying a single item at a dollar tree once every 3 months or so to keep your acccount active and this means you don't have to worry about losing the 83k MR points you have. After you get the ED card go ahead and cancel the gold card. This gets rid of the annual fee problem and your immediate worry about how to best use MR points.

That just defers the problem at the cost of getting a new, currently useless, MR earning card. Personally, (and I think the OP agrees!) as a lesson "MRs are not for me" and cash out for Home Depot or other gift cards, and be done. The only exception would be if OP thinks award travel earning significantly more than 1cpp will be a possibility in the not-too-far future.

Anonymous · ‎11-29-2020

@longtimelurker wrote:
@Anonymous wrote:
OP if I was in your shoes I would apply for the no annual fee everyday card from Amex which earns MR points first before cancelling the gold card. Once approved for the ED you can keep the MR points alive by buying a single item at a dollar tree once every 3 months or so to keep your acccount active and this means you don't have to worry about losing the 83k MR points you have. After you get the ED card go ahead and cancel the gold card. This gets rid of the annual fee problem and your immediate worry about how to best use MR points.
That just defers the problem at the cost of getting a new, currently useless, MR earning card. Personally, (and I think the OP agrees!) as a lesson "MRs are not for me" and cash out for Home Depot or other gift cards, and be done. The only exception would be if OP thinks award travel earning significantly more than 1cpp will be a possibility in the not-too-far future.

Yeah, which was the entire point of my post. The OP currently doesn't know what to do with the MR points and that is his biggest concern. Me telling him to look at getting the Everyday card and him getting that card would be him just kicking the can down the road until he figures out what he wants to do with the points without having to keep paying an annual fee. Whether that's getting gift cards or deciding to spend a few nights at Hilton property that's up to him. Considering he doesn't like the current low value redemptions he sees available this just gives him more time to make a decision. So maybe when/if another 80k mr points for a $1,000 home depot gift card offer will come around again he will want to use the points than instead of now where he will only getting a penny or below a penny point redemption. The only thing the ED card do is allow him more time to make that decision without having to pay an annual fee.

longtimelurker · ‎11-29-2020

@Anonymous wrote:
@longtimelurker wrote:
That just defers the problem at the cost of getting a new, currently useless, MR earning card. Personally, (and I think the OP agrees!) as a lesson "MRs are not for me" and cash out for Home Depot or other gift cards, and be done. The only exception would be if OP thinks award travel earning significantly more than 1cpp will be a possibility in the not-too-far future.
Yeah, which was the entire point of my post. The OP currently doesn't know what to do with the MR points and that is his biggest concern. Me telling him to look at getting the Everyday card and him getting that card would be him just kicking the can down the road until he figures out what he wants to do with the points without having to keep paying an annual fee. Whether that's getting gift cards or deciding to spend a few nights at Hilton property that's up to him. Considering he doesn't like the current low value redemptions he sees available this just gives him more time to make a decision. So maybe when/if another 80k mr points for a $1,000 home depot gift card offer will come around again he will want to use the points than instead of now where he will only getting a penny or below a penny point redemption. The only thing the ED card do is allow him more time to make that decision without having to pay an annual fee.

And I wouldn't have argued except getting another card is not "no cost" At least a new account (although hopefully a SP as an existing customer). So I guess that's the trade off, would more time from a new card allow a different more profitable decision later on, or is it a wasted app leading to the same result.

Wavester64 · ‎11-29-2020

@drave199

>>I'm thinking of closing it before the AF comes up in January<<

Isn't the rule of thumb to let the AF hit and THEN close the card so they give you the reimbursement?

Potential Future Cards

SouthJamaica · ‎11-29-2020

@drave199 wrote:
So I am about done with year two on my amex gold. I'm thinking of closing it before the AF comes up in January. I have litterally used the card maybe twice this year given the lack of eating out. Also, I realized I get a better return on groceries (and everything else) using my amex BCP. The BCP is basically my exclusive card lately except when I go to costco which I use my BofA cash rewards (2% back). Ill be honest in that I probably jumped the gun on getting the Gold because it was a new shiny metal card and it sounded good. I really dont travel at all either. Mistakes were made in the desicion but you live and learn. I did use it quite a bit the first year and more than met the SUB. I just dont see a reason to re-up it again. I already called and checked and there currently isn't a promo to waive the AF, which I didnt expect anyways from what I read. There also wasn't any promos for points or anything to potenially offset the AF. I know I'll get over not having it in my wallet anymore, although it hasn't been pulled out much anyways lol. It's just nice to look at and gives you that "flex factor" lol.

So one concern is what it'll do to my credit if I close it? With it being a charge card and not going against my utilization, I imagine it wont affect it to much?

The other concern, and the MAIN one for this thread, is what to do with the points?? This is where I really need your advice! I currently have about 83K points (which I know probably isn't much) but I have no idea what to do with them. As mentioned, I dont travel and I dont currently have any other travel CCs (ie Hilton or Delta) to transfer the points to. FWIW, I do have one of those free Hilton Honors accounts that I assume I could transfer the points to, but when they would get used is a mystery. Plus I really prefer the IHG hotels but thats on the Chase side of things. I know there are other ways to redeem them (gift cards, pay with points, statement credit) but the return on them is low. The best gift card offer I remember seeing was a $1000 Home Depot card for 80K points earlier this year. I'm pissed that I didn't do that as thats one I could have really used given I bought a house earlier this year and would have been useful. (still would if it came back). I know I could downgrade to the Green and pay a lower AF and keep the points but I would have the same issue with the perks not being worth it vs the BCP unless I suddenly starting eating out again, which I doubt will happen.

So with that said, what advice do you have for me? Any outside the box ideas I'm not thinking of? I really appreciate your help!

No effect on your credit. Close it.

As to the MR points, you could redeem them (e.g. trade for airline miles you'll use some day) or buy some things or gift cards. Or get an Amex Every Day card to park your points.