What to do with amex cards that are backdated

[darkfrosty]

I have two amex cards that are backdated to 99. ED and a PRG which I downgraded from Platinum. Im not really into MR points but got them because of the backdating. The fee for PRG wont hit until next feb but im not sure I even want to keep it anymore. I put all of my spend on chase UR cards. I would keep the ED I guess because of the CL I have on it even though I havent used it in a long time. Is there any downside to cancelling the PRG ? I mean it is backdated and Amex no longer does that?

[OmarGB9]

The only downside is it would stop growing in age. However, it would still show on your reports for the next 10 years, at which point it would fall off.

[takeshi74]

You call whether or not the backdating itself makes it worth keeping open.  Consider the info in the Closing Credit Cards thread linked in the Helpful Threads sticky.  The utilization info isn't relevant to your charge cards but the AAoA info is relevant.

If you want to keep it but don't want to pay that much of an AF see if you can PC it to a card with a lower AF.  See if you can PC to the sernior green.

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@OmarGB9 wrote:
The only downside is it would stop growing in age.

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Account age is determined based on current date minus open date for both open and closed accounts on a report.  Closed accounts do not cease to age.

[Anonymous]

Do charge cards and credit cards carry the same weight on credit scoring?

[FinStar]

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@takeshi74 wrote:

You call whether or not the backdating itself makes it worth keeping open.  Consider the info in the Closing Credit Cards thread linked in the Helpful Threads sticky.  The utilization info isn't relevant to your charge cards but the AAoA info is relevant.

If you want to keep it but don't want to pay that much of an AF see if you can PC it to a card with a lower AF.  See if you can PC to the sernior green.

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@OmarGB9 wrote:
The only downside is it would stop growing in age.

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Account age is determined based on current date minus open date for both open and closed accounts on a report.  Closed accounts do not cease to age.

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Unfortunately, the Senior Green (PC) option isn't available anymore.

OP, if you didn't or don't use the PRG as much, it's doubtful they would give you much of any retention or MR incentive to keep it active.  You'd have to decide whether closing it makes sense if you don't want to pay the AF.  It will remain a positive tradeline on your CRs for another ~10 years (give or take).  It would be difficult to gauge what scoring impact (if any) it would have on your profile given the AAoA at that point.  Anything can happen in that span of time.

[Revelate]

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@Anonymous wrote:

Do charge cards and credit cards carry the same weight on credit scoring?

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For AAOA yes.

For other calculations it's more complex dependant on specific model.

[Anonymous]

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@Revelate wrote:

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@Anonymous wrote:

Do charge cards and credit cards carry the same weight on credit scoring?

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For AAOA yes.

For other calculations it's more complex dependant on specific model.

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What is the OPs credit profile, AAOA, inqs, utilization, etc, so we can get a better picture here.

[kdm31091]

I never advocate keeping cards just to keep them. AAOA is important, but, at the same time, it's only 15 percent of scoring. The accounts, even if closed, will continue to age for ten years.

Realistically, 10 years is a long time so it's hard to say what impact you'll see, if any. If you aren't going to use the cards, I'd probably just move on and close them. It's not like you don't have other cards.

[Revelate]

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@kdm31091 wrote:
I never advocate keeping cards just to keep them. AAOA is important, but, at the same time, it's only 15 percent of scoring. The accounts, even if closed, will continue to age for ten years.

Realistically, 10 years is a long time so it's hard to say what impact you'll see, if any. If you aren't going to use the cards, I'd probably just move on and close them. It's not like you don't have other cards.

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To add to that, I think anyone with a clean sheet and decent tradelines and 10ish year AAOA can make an 800 on any relevant FICO model and almost assuredly Vantage 3 (if I can get 791 there at 2 years AAOA with my file even...) closing an unused credit card is absolutely irrelevant in the grand scheme of things if it doesn't materially change your revolving utilization now.  Might make a difference on bucketing if it were the oldest card but with two cards backdated there, no big deal in this case.

Think with more and more models moving towards giving more weight to recent data, 10 years from now when the closed PRG would be gone would be swabo effect, and additional AAOA (diminishing returns) at the expense of $1950 over those 10 years (not including offers which is how I EASILY justify keeping my Zync open)  doesn't seem to make a great deal of sense.

[Anonymous]

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@Revelate wrote:

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@kdm31091 wrote:
I never advocate keeping cards just to keep them. AAOA is important, but, at the same time, it's only 15 percent of scoring. The accounts, even if closed, will continue to age for ten years.

Realistically, 10 years is a long time so it's hard to say what impact you'll see, if any. If you aren't going to use the cards, I'd probably just move on and close them. It's not like you don't have other cards.

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To add to that, I think anyone with a clean sheet and decent tradelines and 10ish year AAOA can make an 800 on any relevant FICO model and almost assuredly Vantage 3 (if I can get 791 there at 2 years AAOA with my file even...) closing an unused credit card is absolutely irrelevant in the grand scheme of things if it doesn't materially change your revolving utilization now.  Might make a difference on bucketing if it were the oldest card but with two cards backdated there, no big deal in this case.

Think with more and more models moving towards giving more weight to recent data, 10 years from now when the closed PRG would be gone would be swabo effect, and additional AAOA (diminishing returns) at the expense of $1950 over those 10 years (not including offers which is how I EASILY justify keeping my Zync open)  doesn't seem to make a great deal of sense.

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You don't need anywhere near a 10 year AAoA to hit the 800 range. Mine is 4 years and, before my installment loan reported paid, my TU was at 821 and EX at 804. I should note, though, that my oldest account reporting is very old.