What to do about Amex Green and Blue cards?

[Anonymous]

This is my first post here, and I apologize if this topic has been hashed/re-hashed here. I've searched and read through various posts regarding the Amex Green cards, and while they are insightful, each one seems to have a slight twist that doesn't quite fit my situation so I thought I would start my own post. 

I currently have an Amex Green card that has a history dating back around 13 years. I say history, because it started off as a Green card, then a few years later I upgraded to Gold, then to Platinum. About 4-5 years ago, seeing that I wasn't travelling much and never used any of the rewards other than the occasional membership reward point purchase or an airline ticket, I downgraded it back to Green. I also have a Amex Blue credit card card that has a slightly shorter history of around 10 years. I use it every 3-4 months just to keep it active, and they're nominal amounts at that. 

I figured that because I pay the $95 annual fee, I should use the Amex Green for the majority of my monthly expenses (Internet, insurance, utilities, etc.). It seems like there are much better alternatives now, and I'm not too pleased with the annual fee. In addition to the Amex products, I also have a Chase Freedom and Chase Slate card, along with a Citibank Double Cash card. (Because the Amex green is my primary, the amount i spend on these other cards is somewhere south of $500). I'm seriously considering jettisoning the Amex Green and/or the Amex Blue, or at least consolidating it into a single no-fee option like the Amex EveryDay card.

Based on what I've read here so far, I understand that newer FICO models don't place as much importance on account age, with a greater emphasis on utilization percentage. How much impact would cancelling one or the other Amex cards have on my 834 FICO score? The high balance on the Amex Green is about $14k, the credit limit on the Amex Blue is $12k.  I don't plan on applying for any loans in the short to medium term, so maybe saving the $95/year on the fee is worth whatever hit may come. 

What approach should I take with negotiating a better deal? In every post I've read discussing the cancellation of the Green Card, they were never passed on to the retentions department or anything, though they were all relatively short-term customers. Should I say i want to cancel with the expectation that they'll offer a no-fee alternative like the Amex Every Day card, or should I ask for a switch to it from the outset? 

On one hand, I think I'm a good customer because my utilization is low, I pay my bills every month, and don't have too many open accounts. On the other hand, I'm probably a crappy customer in the sense that they don't make a whole lot of money off of me other than the merchant fees that are associated with my purchases. So, I don't know where I stand in terms of my bargaining power/position, and what I should ask for versus what is extraordinary. Any insight to this would be greatly appreciated. 

[mongstradamus]

I am assuming you don’t want to be applying for any new cards. I don’t really understand the reason the green card exists other than it being a charge card. In almost all instances the AMEX ED card is better than the green card. The problem in your situation is if you want to close the green card you don’t have a card that transfers for airline partners. What i would think to myself is if the green card af is worth it for the ability to transfer to airline partners. Alternatively is would I rather open an ED no af card that Is better all around card. 

I don’t know too much about the blue card but from what I gathered its just a plain old 1x mr earning card with no AF, but no ability to transfer to airline partners. 

What i would do if i were in your shoes is close green and possibly blue card and just open the ED card. ED also have 0% BT and APR offer , if thats something you would want to use you could do that as well.  

[Anonymous]

Welcome to the forums ! 

To answer your question on the would cancelling your AMEX green card have on your 834 credit score - the answer is likely ZERO effect. It is a charge card so it should not alter your utilization pertcentages negatively - and the fact the you had the card for such a long time - that will stay on your credit report for at least 7 years and in AMEXs internal files even longer - so you still will be given credit towards Average Age of Accounts. 

And the AMEX greencard is not AMEXs most competitive product. If you are collecting AMEX points the ED w/0 AF or the EDP w/$95 AF are probably much better fits for your lifestyle. And I would just open new AMEX accts if the Sign Up bonus was easily obtainable for you. If they are not - then you can look in to Product Changing your greencard in to one of the two. 

As far as negotiating with AMEX and their retention department - a conversation with them does not hurt - you can explain how your lifestyle has changed over the course of 14 years and the green card is not longer a good fit - and let them know you are considering either the AMEX Everyday cards or the Citibank DC/Chase Freedom products. Let them try and see what you are worth to them and then make a decision. 

The best solution for you is not to worry about what the banks make off you or the banks finacial health - pick the path the gives you the most bang for you buck based on your current needs and spending habits. 

What I would do if I were you - hmmm - I like AMEX points because I like to redeem them for international airline tickets - so I would go to the AMEX EDP card. If you are not traveling and do not plan to - cash back is a better choice - and I would get the US Bank Cash + card for the 5% categories that you choose (cell phones + Utilities) and then combine that with Freedom and it 5% rotating categories and the Citibank or PayPal card for 2% on everything else. 

[Anonymous]

I went from an annual fee card to a no-fee card. I just asked for a product change for them and they did it, easy. Or you could ask them to waive the fee for a year on the charge card since you've been such a good customer for a long time. Then product change that one in a year.

I would be really reluctant to close the cards if that she when you have such a long history with them.

[Anonymous]

I appreciate all the guidance and deep insight - you're right that the EveryDay or EveryDay Preferred is the better way to go. When you mention that the sign-up bonuses are easily obtainable, what does that mean? In terms of credit scores and such I don't imagine that would be a problem, and I haven't signed up for any of these deals before. 

What prompted my exploring this matter today was seeing a similar offer for the Chase Sapphire card - same $95 annual fee ($0 introductory for a year) and 50k bonus points. Between the Chase Sapphire and the EveryDay Preferred, they seem pretty equal to me. Is there anything I'm missing in the comparison that clearly puts one over the other? 

I have about 26k Amex Membership Rewards points accumulated, and while I've used that for travel before, I probably go on one domestic trip a year, and one international trip a year. I've used those points in both cases so I have gotten some use out of them, so I could go either way on keeping that program in place. 

Thanks again for all of your help.

[mongstradamus]

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@Anonymous wrote:

I appreciate all the guidance and deep insight - you're right that the EveryDay or EveryDay Preferred is the better way to go. When you mention that the sign-up bonuses are easily obtainable, what does that mean? In terms of credit scores and such I don't imagine that would be a problem, and I haven't signed up for any of these deals before. 

What prompted my exploring this matter today was seeing a similar offer for the Chase Sapphire card - same $95 annual fee ($0 introductory for a year) and 50k bonus points. Between the Chase Sapphire and the EveryDay Preferred, they seem pretty equal to me. Is there anything I'm missing in the comparison that clearly puts one over the other? 

I have about 26k Amex Membership Rewards points accumulated, and while I've used that for travel before, I probably go on one domestic trip a year, and one international trip a year. I've used those points in both cases so I have gotten some use out of them, so I could go either way on keeping that program in place. 

Thanks again for all of your help.

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I had the EDP as my everyday using card for last two years or so , I think its a better earning card then CSP when you don’t take into account signup bonuses. You have to be able to hit 30 swipe to activate 50% mr bonus , but you could theoretically get 4.5x MR groceries, 3x Gas, 1.5x on everything else. For some people that is better earning potential then 2x travel and dining that CSP offers you. EDP is a pretty well rounded card in general. After year 2 i think EDP is superior to the CSP in my opinion. 

In general with MR and UR you should try and figure out how you are going to spend your mr and ur before even applying for any cards. For example I usually use my points every two years or so to visit family in thailand, so right now i am in process of accumulating both MR/UR to use with either Virgin Atlantic or SQ they are both partners with MR and UR. If you are fly domestically once a year the value isn’t as great since most cross country flights are 25k no matter what currency you use. International flights is where you can get the best value. For example i have been looking at MR to ANA to fly to thailand i think its only 95k RT in business class from JFK. 

If you apply for EDP/ED you can try and ask Amex if you can move over some of your credit limit over from your other cards I personally have never tried it with Amex i have done it i with chase before. I also believe Amex still does 3x CLI every 90 days with only softpull , somebody can correct me if i am incorrect. 

[Anonymous]

Just want to add one point as most has been covered by previous posts. Just because you're paying AF on the Green doesn't mean you have to put most of your charges on it, you'll recoup more of that AF by using the right cards based on maximizing rewards while putting next to nothing on the Green.

[NRB525]

OP have you considered upgrading the Green to Gold?
The Gold will get you many more MR points for restaurants and many grocery stores. The $100 Airline fee credit can help with the bag fees or some other costs on your fee trips per year. Occasional use of the $10 per month dining credit.

A new app for ED might make sense, CSP as well. But if you are not traveling much, the CSP might not be too valuable to open now.

[GeorgiaBulldog]

If you have one domestic and one international trip a year, I think PCing your Green to the new Gold is a good idea if you are not averse to the $250 fee and can make use of the airline and dining credits.  The 4x MR on dining and groceries are hard to beat.  You can combine that Gold with an ED (especially if you can snag the 25k bonus) or EDP, or if you're comfortable with opening an Amex Business card, a Blue Business Plus (and for what it's worth, Amex is totally ok with personal spend on business cards).

[AverageJoesCredit]

Make Cyan? 😁