Will closing my Amex Gold drop my score?

[ACN323]

I've had the Amex Gold for about 5 months. I'm finding myself overusing it, and then being stressed when balance is due each month. I thought the idea of a charge card would make me spend more responsibly, since it needs to be PIF each month, but the reality is, I'm spending to just meet requirements for sign up bonus, (which I met,) Uber credits etc. which I honestly don't use normally but have been for the sake of justifying the annual fee. I definitely got caught up in the allure of having the card, but I'm more of a use the card every now and then and not a daily driver type of person. I want to pay and close the card, but don't want to mess with my Fico score as I've worked really hard to get it where it is now, (which is still just under 700.) I also don't want Amex to think I'm SUB chasing. I have a Delta Gold which I plan on keeping for the long haul, and I'm an AU on my DH Cash Magnet, which we plan on keeping open as well. Annoyed with myself for falling back into this pattern of spending and not budgeting, but happy I can acknowledge it early on and hopefully nip it in the bud, and not have a repeat of a few years ago. 

Long winded story aside... My question is...will paying and closing it ding my score, or not so much as its not a set line of credit? Advice? Thoughts? Help!?

[RSX]

since you did meet the SUB, i think they WILL think you were sub chasing for this one

i would throw it in the Sock Drawer and wait until the 1 year mark before closing - but i do think that may limit your availability for a SUB with them for the following year

if you don't think you will use any Amex card for the next 3-5 years, then this may not be a factor and you can close it

As for your score - no idea - you already took the hit for the Inquiry and New Acct and Age of Youngest Acct - so all the score changes have already been on your CRA

[Anonymous]

You should see very little to no score change. The account will report as closed so the aging impacts of opening the card 5 months ago will still impact your score, but charge cards are not included when calculating utilization so this should not be affected at all. If you let the balance report before paying the card you will see one less account with a balance, and that would actually be a positive.

As for AMEX, it is very possible it may throw a flag that you are SUB chasing since it was opened pretty recently. It likely wouldn't be an issue if this is the only card you are planning to close, but it could, as always ymmv. Maybe consider keeping it open for closer to a year and close the card before the AF hits? If the temptation to use the card is too much during that time then go ahead and close; the potential impact it may have on your standing with AMEX isn't worth risking the financial stability you have gained.

Congrats on all you have achieved and on recognizing and eliminating a financial stressor before it becomes a problem. It takes a lot of self-control and personal insight to do that.

[ACN323]

@Anonymous @RSX thanks for the insight. I have no problem waiting until it's been a year, for the sake of not having any issues with Amex. I've already sock drawered it, I did pay first year annual fee already. First month I had it, they charged it. My Delta gold has given me the year before charging it at least.

[Ficoproblems247]

Good for you for putting healthy financial habits before shiny cards and unnecessary spending. You'll go on a naughty list for a bit as far as being able to get another SUB from them, but other than that it shouldn't be the end of the world. The best thing to do will be to wait until the card ages fully to a year. When the statement cuts that has the next AF on it call and have it canceled. They will then refund the AF. Be sure to cancel no later than 30 days from statement cut that has the AF billed to it. 

[ACN323]

@Ficoproblems247 noted and will do! Thanks for the advice! 

[FishingGuy]

I would hold onto the card....... and not cancel it.   If you're having trouble controlling your spending..... take it out of your wallet,  put it away and take it out to use it now and then.  If you're not concerned with the annual fee......  hold onto the card and learn how to do control your spending. .  It's not the card that's a problem.... but your self control.   Will you have to cancel any and all cards you havenow or in the future ?

[Ficoproblems247]

---

@FishingGuy wrote:

I would hold onto the card....... and not cancel it.   If you're having trouble controlling your spending..... take it out of your wallet,  put it away and take it out to use it now and then.  If you're not concerned with the annual fee......  hold onto the card and learn how to do control your spending. .  It's not the card that's a problem.... but your self control.   Will you have to cancel any and all cards you havenow or in the future ?

---

OP isn't having a spending problem in general, just using the Gold Card to try and hit all of it's perks can prompt a lot of extra spend that may have not necessarily been organic had they not had the card. Also, a $250 AF is a hard pill to swallow for a SDd card. Closed or open, it will affect AAoA the same regardless. The whole waiting a full year to close the card is simply not to spook AMEX as a lender, as OP expressed the desire to continue a good relationship with them. It will have no bearing on FICO scoring.