How Close AMEX SPG without hurting credit score
How Close AMEX SPG without hurting credit score
My oldest credit cards are a AMEX SPG (1998 open) and a BOA Master (1999). If I cancel my SPG, will it hurt my credit score? (I carry no balances across the board. What is the best way to cancel this card? I tried downgrading but AMEX said no -- I need switch to a Delta. I want to get rid of the cards due to the annual fee and use the 2% cash back instead.
Any idea?
Any idea?
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Re: How Close AMEX SPG without hurting credit score
My understanding is that Amex applies your earliest credit date to all your cards. I'm not sure if this is true but you could open a no fee Amex card and then close the SPG and I think you would keep your original open date. Here is an article that answers a lot of questions about credit cards.
http://www.dansdeals.com/archives/53213
http://www.dansdeals.com/archives/53213
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Re: How Close AMEX SPG without hurting credit score
Is your credit score "borderline" for getting the best rates on any loans you might want or need in the near term or for insurance underwriting purposes?
If not, I wouldn't worry about it. I always close whatever cards accounts etc. I don't need or want anymore and the impact on credit scores is minimal, short-lived and not relevant to any real-world consequences. You don't win anything for having ultra-high credit.
I've read forums on boosting or maintaining credit scores with all kinds of "techniques" and it seems to be something that's important to people with lousy credit scores due to real negatives on their report.
If not, I wouldn't worry about it. I always close whatever cards accounts etc. I don't need or want anymore and the impact on credit scores is minimal, short-lived and not relevant to any real-world consequences. You don't win anything for having ultra-high credit.
I've read forums on boosting or maintaining credit scores with all kinds of "techniques" and it seems to be something that's important to people with lousy credit scores due to real negatives on their report.
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Re: How Close AMEX SPG without hurting credit score
Closed cards and their age continue to show on your credit report and contribute (positively) for a number of years. Meanwhile, you can presumably have other cards that will be getting older. In any case, you have another card that is just a year younger that (I gather) you are keeping. I doubt closing the AMEX will have a significant impact. Furthermore, as another poster has mentioned, if you are not immediately going out to borrow money, you shouldn't care.
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Re: How Close AMEX SPG without hurting credit score
I have read in multiple places that the age of the oldest open credit account does indeed matter. Accordingly I keep my oldest credit card open even though I do not need/want it - luckily no fees involved.
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Re: How Close AMEX SPG without hurting credit score
This is correct. Open no fee AmEx card, receive new card, then cancel SPG card. You'll retain 1998 as the date account was opened on new card.gaspony wrote:My understanding is that Amex applies your earliest credit date to all your cards. I'm not sure if this is true but you could open a no fee Amex card and then close the SPG and I think you would keep your original open date. Here is an article that answers a lot of questions about credit cards.
http://www.dansdeals.com/archives/53213
Re: How Close AMEX SPG without hurting credit score
Can you find an authoritative source? I have two references from FICO itself which don't say so:Sunny Sarkar wrote:I have read in multiple places that the age of the oldest open credit account does indeed matter.
Understanding Your FICO® Score lists various factors including average age of accounts but says nothing about these accounts needing to be open
Closing Credit Cards, from FICO message board:
So closing a card may have an effect on your score ten years from now, but the effect will be trivial by then, as all the other accounts you have now will still be on your report and will be more than ten years old.In the short-term, there should be no adverse affect to your FICO scores, average age of accounts, or the length of your credit history, provided there is no increase in your util% calculations after you close any CC(s). In the long-term, a CC in good standing (nothing derogatory reporting) with a $0 balance will generally be deleted from your CRs (credit reports) after 10 years. Once this account is deleted, you lose the history and age of this TL and this might lower your scores.
Re: How Close AMEX SPG without hurting credit score
Thanks! I'll close the SPG and open an Everyday Cash Back AMEX.
Re: How Close AMEX SPG without hurting credit score
Minor point, but you'd want to do these in the reverse order - open the Everyday card first and then close the other one.bogleboy wrote:Thanks! I'll close the SPG and open an Everyday Cash Back AMEX.
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Re: How Close AMEX SPG without hurting credit score
Remembered this one... don't know whether they can be considered "authoritative", but they are in this business and I hope they know what they are talking about.grabiner wrote:Can you find an authoritative source?Sunny Sarkar wrote:I have read in multiple places that the age of the oldest open credit account does indeed matter.
Credit Karma wrote:Don't... Close the oldest account on your credit reports. This could cause your credit history to appear shorter and could harm your credit score.
https://www.creditkarma.com/article/ClosingOldAccount
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Re: How Close AMEX SPG without hurting credit score
You don't have to close anything. Just convert your SPG to the Everyday card.
Re: How Close AMEX SPG without hurting credit score
10 years in the future, not now.Credit Karma wrote:This could cause your credit history to appear shorter and could harm your credit score.
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