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  • FIRST POST
    • philip1427
    • By philip1427 14th Jun 17, 4:06 PM
    • 93Posts
    • 14Thanks
    philip1427
    Will I damage my credit score?
    • #1
    • 14th Jun 17, 4:06 PM
    Will I damage my credit score? 14th Jun 17 at 4:06 PM
    As it stands I have a credit score of 961 which puts me in the excellent bracket.

    I have only been using credit cards for two years now. I use them to gather rewards and cash back on my daily spending. I have always paid off my balances in full.

    Next month I am planning to do a shake up of my credit cards that I keep in my wallet.

    This is my plan:

    Cancel Amex Gold Charge card as I have nearly had it for a year and don't want to pay the card fee,
    Cancel Amex Gold Credit card as I spent the required amount to get the bonus points. Only had this card for three months but in order to qualify as a new Amex customer you can't have any point collecting cards for at least six months.
    Keep my Nationwide Select card for its good cash back, fee free foreign purchases and wide acceptance as its a visa card.
    Apply for Amex British Airways fee free card. I want to keep building my avios stash as I am working towards two flights to New York.

    I have some concerns that doing this my harm my credit rating as I am cancelling a card that I have only had for three months and getting a new one. Any advice?

    ****UPDATE*****
    I was successful in getting the BA fee free card. A friend referred me so I can get a higher welcome bonus when a hit the spending target.
    Last edited by philip1427; 21-06-2017 at 12:19 PM. Reason: update
Page 1
    • zx81
    • By zx81 14th Jun 17, 4:09 PM
    • 13,192 Posts
    • 13,509 Thanks
    zx81
    • #2
    • 14th Jun 17, 4:09 PM
    • #2
    • 14th Jun 17, 4:09 PM
    Your credit score is meaningless. Any changes you make in terms of opening or closing accounts will cause it to drop. Ignore it with a vengance.

    Make sure you keep at least two or three cards as back ups and space any new applications out.

    Assuming you're not carrying balances, consider you limits in relation to your income.
    • Marchitiello
    • By Marchitiello 15th Jun 17, 12:21 AM
    • 256 Posts
    • 94 Thanks
    Marchitiello
    • #3
    • 15th Jun 17, 12:21 AM
    • #3
    • 15th Jun 17, 12:21 AM
    Also make sure you can transfer all existing Amex Membership rewards before closing both Amex cards.
    • Ben8282
    • By Ben8282 15th Jun 17, 3:52 AM
    • 2,010 Posts
    • 885 Thanks
    Ben8282
    • #4
    • 15th Jun 17, 3:52 AM
    • #4
    • 15th Jun 17, 3:52 AM
    For someone who has only been using credit cards for two years you are not doing that badly. You have managed to get an Amex gold charge card and an Amex gold credit card (that as far as I can see doesn't even exist), so well done.
    You are concerned at damaging your credit score. Actually, in your place I would be more concerned about damaging my reputation with Amex. You have held the charge card for less than a year and intend to cancel it. You have held whatever sort of credit card it actually is for only three months and now you want to cancel it. In Amex place I wouldn't give you another card because no doubt you will just cancel it again.
    • RichL74
    • By RichL74 15th Jun 17, 8:08 AM
    • 830 Posts
    • 338 Thanks
    RichL74
    • #5
    • 15th Jun 17, 8:08 AM
    • #5
    • 15th Jun 17, 8:08 AM
    You have managed to get an Amex gold charge card and an Amex gold credit card (that as far as I can see doesn't even exist), so well done.
    Originally posted by Ben8282
    Not this one then?

    https://www.americanexpress.com/uk/content/gold-card/?sourcecode=MULT000221&cpid=100122274&veid=sAinCyL gZ|dc_pcrid_196659752604_plid__kword_amex%20gold%2 0credit%20card_match_e
    • jpsartre
    • By jpsartre 15th Jun 17, 9:04 AM
    • 2,679 Posts
    • 1,793 Thanks
    jpsartre
    • #6
    • 15th Jun 17, 9:04 AM
    • #6
    • 15th Jun 17, 9:04 AM
    That's the Gold charge card.
    • RichL74
    • By RichL74 15th Jun 17, 9:32 AM
    • 830 Posts
    • 338 Thanks
    RichL74
    • #7
    • 15th Jun 17, 9:32 AM
    • #7
    • 15th Jun 17, 9:32 AM
    So it is!!
    • Mr Goodkat
    • By Mr Goodkat 15th Jun 17, 10:07 AM
    • 383 Posts
    • 231 Thanks
    Mr Goodkat
    • #8
    • 15th Jun 17, 10:07 AM
    • #8
    • 15th Jun 17, 10:07 AM
    For someone who has only been using credit cards for two years you are not doing that badly. You have managed to get an Amex gold charge card and an Amex gold credit card (that as far as I can see doesn't even exist), so well done.
    You are concerned at damaging your credit score. Actually, in your place I would be more concerned about damaging my reputation with Amex. You have held the charge card for less than a year and intend to cancel it. You have held whatever sort of credit card it actually is for only three months and now you want to cancel it. In Amex place I wouldn't give you another card because no doubt you will just cancel it again.
    Originally posted by Ben8282
    It will be this 'Rewards Credit Card'
    https://www.americanexpress.com/uk/content/arcc-rewards/?AFFID=MONSPMRK&CRTV=Affiliates_MSE_ARCC_Rewards_D esktop_2016&sourcecode=X60403GB01&cpid=100240262

    OP you would have been better taking out the Everyday Platinum Cashback Credit Card as this has a better introductory offer and provides cashback rather than points so can be kept as an ongoing card whilst taking advantage of new customer Amex offers on any of the cards that attract points
    • Anthorn
    • By Anthorn 16th Jun 17, 11:18 PM
    • 3,101 Posts
    • 798 Thanks
    Anthorn
    • #9
    • 16th Jun 17, 11:18 PM
    • #9
    • 16th Jun 17, 11:18 PM
    Only had this card for three months but in order to qualify as a new Amex customer you can't have any point collecting cards for at least six months.
    Originally posted by philip1427
    If you are referring to a new customer introductory offer/bonus my understanding is that Amex removed the time limit and cardmembers can only get it once regardless of how long they have been or no longer been a cardmember.

    Also information on how many cards can be held or how long after cancellation one can apply for a new card is sketchy. In one breath it's 4, in another breath it's 2 and in another breath it's 2 which must be a credit card and a charge card which is what I have. Best to check directly with Amex customer service before you take the plunge and cancel. Personally if possible I would be inclined to apply for the new Amex card before I cancel the other Amex cards.
    • Geoff1963
    • By Geoff1963 16th Jun 17, 11:37 PM
    • 1,058 Posts
    • 668 Thanks
    Geoff1963
    NatWest have a 14-day cooling-off period on loans. They also allow you close off a loan, and open another one, by borrowing : a different amount, and / or over a different period.
    However, if you do cancel the new loan, they won't promise to restart your old one.

    Regardless of the numbers, I'd be very cautious about upsetting lenders who it seems have been very good to you.
    Perhaps instead of cancelling, you could say a few months before renewal, that you don't want a new card. That will save them the cost of making it, and if you haven't used it in the months beforehand, they'll understand. Either that, or suggest that as you haven't been using it, you aren't bothered either way, and let them choose.

    Credit is like an airbag, you might hope you won't need it, but if you do, you'll really need it.

    When I bought a new car which came with free breakdown cover, I cancelled the stand-alone cover I'd been using ; and explained this to the company, it just seemed polite.
    So, if you are going to cancel the Amex cards, at least write them an "It's not you, it's me", letter.
    • datlex
    • By datlex 17th Jun 17, 10:18 AM
    • 1,319 Posts
    • 1,100 Thanks
    datlex
    Applying for any type of new credit will effected your score. Even opening a new current account or mobile phone will.
    • A4445
    • By A4445 17th Jun 17, 3:04 PM
    • 600 Posts
    • 279 Thanks
    A4445
    For someone who has only been using credit cards for two years you are not doing that badly. You have managed to get an Amex gold charge card and an Amex gold credit card (that as far as I can see doesn't even exist), so well done.
    You are concerned at damaging your credit score. Actually, in your place I would be more concerned about damaging my reputation with Amex. You have held the charge card for less than a year and intend to cancel it. You have held whatever sort of credit card it actually is for only three months and now you want to cancel it. In Amex place I wouldn't give you another card because no doubt you will just cancel it again.
    Originally posted by Ben8282

    I've been able to get an Amex Gold Charge card as well, everything negative has gone off my report but I've only got a history of 18 months with a credit card. I don't think they are particularly hard to get anymore!
    • msallen
    • By msallen 18th Jun 17, 4:10 AM
    • 526 Posts
    • 439 Thanks
    msallen
    Yes, this will have an effect on your score, but then as we all know that means nothing.

    Amex are generally OK with card churning, but I would advise always keeping current membership with them, so either get the BA card before cancelling the gold credit card or get another "non-membership rewards" card (such as the everyday platinum cashback) that you can keep long term to help keep membership alive during future churns too.

    If you are looking for two flights to New York then assuming these are at least business class flights (as using Avios for long haul economy is generally a very bad idea) you should consider the Premier BA card rather than the free one, as the 2-for-1 voucher will probably be worth far more than the card fee.
    • philip1427
    • By philip1427 21st Jun 17, 12:07 PM
    • 93 Posts
    • 14 Thanks
    philip1427
    Yes, this will have an effect on your score, but then as we all know that means nothing.

    Amex are generally OK with card churning, but I would advise always keeping current membership with them, so either get the BA card before cancelling the gold credit card or get another "non-membership rewards" card (such as the everyday platinum cashback) that you can keep long term to help keep membership alive during future churns too.

    If you are looking for two flights to New York then assuming these are at least business class flights (as using Avios for long haul economy is generally a very bad idea) you should consider the Premier BA card rather than the free one, as the 2-for-1 voucher will probably be worth far more than the card fee.
    Originally posted by msallen
    Yes I have applied for the BA amex through a referral and I have been approved for it. I get a bonus of 6000 avios without a card fee.
    I would love to get the Premier card but I am against paying to have a credit card and unfortunately would not spend enough on an Amex card to get the 2 for 1 voucher.
    We live in Belfast so we were thinking of flying from dublin to america. Dublin is our nearest international 'hub' next best would be connecting in Heathrow or somewhere else on the mainland.
    Unfortunately, we will be flying in economy.... but 26,000 avios plus 75£ in tax (because ROI doesn't charge APD) seems an ok deal for me. I would never have enough points to fly business sadly. Well not at the moment at least. I usually find myself using avios to fly from Belfast to London where I find good value as flights between these two cities are usually around 180£!
    • philip1427
    • By philip1427 21st Jun 17, 12:11 PM
    • 93 Posts
    • 14 Thanks
    philip1427
    NatWest have a 14-day cooling-off period on loans. They also allow you close off a loan, and open another one, by borrowing : a different amount, and / or over a different period.
    However, if you do cancel the new loan, they won't promise to restart your old one.

    Regardless of the numbers, I'd be very cautious about upsetting lenders who it seems have been very good to you.
    Perhaps instead of cancelling, you could say a few months before renewal, that you don't want a new card. That will save them the cost of making it, and if you haven't used it in the months beforehand, they'll understand. Either that, or suggest that as you haven't been using it, you aren't bothered either way, and let them choose.

    Credit is like an airbag, you might hope you won't need it, but if you do, you'll really need it.

    When I bought a new car which came with free breakdown cover, I cancelled the stand-alone cover I'd been using ; and explained this to the company, it just seemed polite.
    So, if you are going to cancel the Amex cards, at least write them an "It's not you, it's me", letter.
    Originally posted by Geoff1963
    Thank you for your advice.

    Luckliy I don't need to rely on credit cards. I make sure I do not spend anymore than I can afford to repay at the end of the month.

    Yes, I am going to ring Amex and tell them I cannot justify paying fees for an Amex credit card as I cannot put enough purchases on it as acceptance in my local area isn't the best. This is entirely true. In fact, I got the Nationwide Select Visa so I could at least get some cash back on my purchases made from merchants who do not accept Amex
    • philip1427
    • By philip1427 21st Jun 17, 12:12 PM
    • 93 Posts
    • 14 Thanks
    philip1427
    If you are referring to a new customer introductory offer/bonus my understanding is that Amex removed the time limit and cardmembers can only get it once regardless of how long they have been or no longer been a cardmember.

    Also information on how many cards can be held or how long after cancellation one can apply for a new card is sketchy. In one breath it's 4, in another breath it's 2 and in another breath it's 2 which must be a credit card and a charge card which is what I have. Best to check directly with Amex customer service before you take the plunge and cancel. Personally if possible I would be inclined to apply for the new Amex card before I cancel the other Amex cards.
    Originally posted by Anthorn
    I checked with Amex I can confirm you are treated as a new customer after 6 months.
    • philip1427
    • By philip1427 21st Jun 17, 12:13 PM
    • 93 Posts
    • 14 Thanks
    philip1427
    It will be this 'Rewards Credit Card'
    https://www.americanexpress.com/uk/content/arcc-rewards/?AFFID=MONSPMRK&CRTV=Affiliates_MSE_ARCC_Rewards_D esktop_2016&sourcecode=X60403GB01&cpid=100240262

    OP you would have been better taking out the Everyday Platinum Cashback Credit Card as this has a better introductory offer and provides cashback rather than points so can be kept as an ongoing card whilst taking advantage of new customer Amex offers on any of the cards that attract points
    Originally posted by Mr Goodkat
    The Gold Credit Card deal was only offered to Gold charge card holders. I got 3000 bonus points with a £500 spend over 3 months. The card offered no real benefits.
    • philip1427
    • By philip1427 21st Jun 17, 12:16 PM
    • 93 Posts
    • 14 Thanks
    philip1427
    Also make sure you can transfer all existing Amex Membership rewards before closing both Amex cards.
    Originally posted by Marchitiello
    I have transferred most to my BA account however this can only be done in lots of 500. Do you have any recommendations of what to do with the spare points? Just use them for statement credit?
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