Tired of paying Amex Gold Card annual fee for a card I never use....Help!!?

Question

I'm paying around $85 a year for the privilage of owning an Amercian Express gold card. I very rarely use it and I'd like to close the account. Because it is a charge card, and not a credit card, I don't have a preset limit. If I close this card, will it hurt my credit score? Creditors use the difference between your credit card balances and availabe credit to help determine your FICA score. I just can't figure out how a charge card plays into this equation....Any help here would be wonderful !!!

Answer 1

Even after you cancel your credit card, your payment record stays on the report for a long time. And the credit report notes whether the card was closed at your request or otherwise.

Furthermore, the services of the credit report do not, in and of themselves, determine if you are worthy of credit in any given situation. They report a number which is either a starting point for underwriting a credit application or else a test of data you have supplied otherwise. The bottom line is that extension of credit is a BUSINESS decision, and the score is a "sniff test."

That said, there will be and there are businesses that will give a pass/fail on the score alone, but if you've ever applied for a mortgage, you know that the credit score is just one of a number of factors.

So, start a card with no annual fee, use it, pay on it every month, establish the right pattern ...and then say "good bye" to Amex.

And good riddance, too.

Answer 2

The American Express card does play into your credit score, because it's still a "revolving charge account" just like a credit card is.

The bottom line is this: I would not pay $85 a year for a card that I rarely use. In three years, you will have already saved enough money equivalent to a round-trip airfare.

I think our reliance / dependence / impression of credit scores is overrated. Two years ago I switched to ONLY having a debit card. All the money I paid in interest charges is now going into MY bank account, and my Bank of America debit card works almost anywhere that my credit card used to work (including Budget and Alamo car rental!). And I pay NO fees or interest. I love it.

I also had no problem scoring a mortgage, despite the fact that I have no credit cards. And instead of having a credit card for emergencies, I have an "emergency fund" in a savings account that contains 2 months worth of expenses. The savings account is "overdraft protection" on my checking account, so all I need to do is use my debit card, and if money from the emergency fund is needed, it automatically gets transferred when I need it.

Answer 3

Yes, however awkward it may seem but, this is the first question that everyone should ask himself before going for another credit card. Too many Americans are having more than one card already. Adding one will only increase the burden, if not used wisely. So, unless absolutely essential don't go for a new credit card.

2. Your credit score

Every credit rating agency is obliged to give a free annual credit report if asked to do so. By all means do it, keeping a track of your credit score will help you gauge what the credit card companies are willing to give you. A good credit score can get you a Gold card, while excellent can help you get that Platinum credit card. If the credit scores are not good, there is no use applying for highly rated credit cards. It will save you a lot of time, money and prevent embarrassments due to rejection if you apply for the 'right' credit card.

3. Shop around

There are lots of credit card companies out there, and so are the number of credit cards. At any given point of time there can be many offers, with different features that can suit a person with a particular credit score. So, to save time, money, and get the right credit card, it is better to compare various credit card offers. This can be easily accomplished at various credit card comparison websites. Comparing offers side by side will give you a correct picture of what the credit card company is offering you. read more about it at: http://www.credit-card-gallery.com/article/231,5_vital_steps_for_a_better_credit_card_experience

Answer 4

Anyone who says it will hurt your credit does not know what they are talking about. Close the account. If you want a no fee amex, talk to the representative at amex when you are canceling the gold. They will help you find something that works for you. There is no penalty for closing an account in good standing.

Answer 5

Yes, it will hurt your credit score since the history and credit amount of this card is used for computing the score.

There are a lot of no fee credit card, if I were you, I will close the charge and use a cash rebate card such as AMX blue cash.

The closing of your card will lower your score for a while, but if you don't close it, it will charge you for ever.

Answer 6

I wouldn't worry about closing this account-- especially if you don't use it and you're wasting $85 per year! It might have a slightly negative impact on your credit score-- but it will correct itself in a short period of time.

Answer 7

I really don't know if it will hurt your credit ratings but, I got rid of mine a longtime ago. for seven months I got phone calls for a payment that was debited from my bank acct, that they claimed they never received. When they found out their mistake , they apologized to my bank but never to me. On the contrary ,I got a warning letter for late payment. Believe me I don't even want to hear about them.

Answer 8

no it will not hurt your credit. just call the the company and ask them to close your account and to note it as you closing it and not the company.

another idea is to call am ex and ask them if they will drop the fee