Cancelling the Amex Gold Charge Card after 1 year

bassy7

Hi,

Apologies if this has been discussed elsewhere- I have only just joined the forum, and couldn't find it!

I am thinking of taking advantage of the 20,000 bonus airmiles offer when signing up for the Amex Preferred Rewards Gold charge card. I would want to cancel the card after the first year to avoid the £125 annual fee that then kicks in, but I was just wondering if someone could explain how this works- what happens to the airmiles you have collected?

Is there any fee/penalty for cancelling and would doing so affect my credit score?

I have never had an airmiles credit card before so this is all new to me! I'd greatly appreciate any help!

InsideInsurance

You need to transfer the MR points to something else prior to closing the account - eg Avios or VS Miles

No fee/ penalty for cancelling, they even prorata refund any fees you have paid.

As to credit score, it will simply show the account as being closed/ fully satisfied. How that will impact you depends on the 20 other interdependent criteria that makes up your credit history/score. Inherently isnt bad but if it was your ownly active line of credit then you may find it a problem

Stephen_C.

Further to OP's question, what is the suggested route for someone who wants to stay with Amex but potentially with a lower-fee/fee-free card?

Do they offer a downgrade service over the phone, do you need to apply again, is the likelihood of being accepted almost certain due to already having a card with them?

Everyday cashback looks OK as a fee-free card.

bassy7

InsideInsurance wrote: »

You need to transfer the MR points to something else prior to closing the account - eg Avios or VS Miles

No fee/ penalty for cancelling, they even prorata refund any fees you have paid.

As to credit score, it will simply show the account as being closed/ fully satisfied. How that will impact you depends on the 20 other interdependent criteria that makes up your credit history/score. Inherently isnt bad but if it was your ownly active line of credit then you may find it a problem

thanks so much, that's really useful!!

Deadbeat

Stephen_C. wrote: »

Further to OP's question, what is the suggested route for someone who wants to stay with Amex but potentially with a lower-fee/fee-free card?

Do they offer a downgrade service over the phone, do you need to apply again, is the likelihood of being accepted almost certain due to already having a card with them?

Everyday cashback looks OK as a fee-free card.

There are a couple of routes open to you.

1) If you wanted a less expensive charge card, you can phone them and ask to downgrade to the Green (£60/year) or Basic (free - but no MR points).

2) You could potentially 'crossgrade' to the cashback card but since it is a revolving credit facility instead of a charge card there may be an additional credit check involved.

I'm presently moving my spending from the Platinum cashback card to the Gold card as most of my spending is on travel and the Gold card's benefits appear to be better.

Stephen_C.

Deadbeat wrote: »

There are a couple of routes open to you.

1) If you wanted a less expensive charge card, you can phone them and ask to downgrade to the Green (£60/year) or Basic (free - but no MR points).

2) You could potentially 'crossgrade' to the cashback card but since it is a revolving credit facility instead of a charge card there may be an additional credit check involved.

I'm presently moving my spending from the Platinum cashback card to the Gold card as most of my spending is on travel and the Gold card's benefits appear to be better.

If there's a credit check involved anyway, could I apply for the cashback card in addition to the Gold card? (if I decided to keep the Gold)

vanilla8

I would cancel the gold, so that you could potentially re-apply in 6 months and be eligible for another bonus..................

w211

Stephen_C. wrote: »

If there's a credit check involved anyway, could I apply for the cashback card in addition to the Gold card? (if I decided to keep the Gold)

You could do, but I would leave it for at least 6 months before applying so they can see how well you're managing your Gold card. If they see it's ok, then they'll give you a cashback card.

I had their cashback card for a while, then applied for a charge card after a couple of years, where I was instantly accepted, and don't think they did a credit check.