Will I damage my credit score?

philip1427 · 14 June 2017 at 4:06PM

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.

[Deleted User] · 14 June 2017 at 4:09PM

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 · 15 June 2017 at 12:21AM

Also make sure you can transfer all existing Amex Membership rewards before closing both Amex cards.

Ben8282 · 15 June 2017 at 3:52AM

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 · 15 June 2017 at 8:08AM

Ben8282 wrote: »

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.

Not this one then?

https://www.americanexpress.com/uk/content/gold-card/?sourcecode=MULT000221&cpid=100122274&veid=sAinCyLgZ|dc_pcrid_196659752604_plid__kword_amex%20gold%20credit%20card_match_e

jpsartre · 15 June 2017 at 9:04AM

That's the Gold charge card.

RichL74 · 15 June 2017 at 9:32AM

So it is!!

Mr_Goodkat · 15 June 2017 at 10:07AM

Ben8282 wrote: »

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.

It will be this 'Rewards Credit Card'
https://www.americanexpress.com/uk/content/arcc-rewards/?AFFID=MONSPMRK&CRTV=Affiliates_MSE_ARCC_Rewards_Desktop_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 · 16 June 2017 at 11:18PM

philip1427 wrote: »

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.

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 · 16 June 2017 at 11:37PM

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 · 17 June 2017 at 10:18AM

Applying for any type of new credit will effected your score. Even opening a new current account or mobile phone will.

Will I damage my credit score?

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