My credit score is 830. I’ve decided to stop using my American Express Green (Personal) card, which has a $150 annual fee. Unfortunately, there’s no option to downgrade to a card with no annual fee. I’ve had it for 20 years, making it my oldest credit card by far. How much could this affect my credit if I cancel it? Is it worth keeping the card and paying $150 a year just for the sake of my credit score?
Update: I also have an American Express Blue card (no annual fee) that I’ve had for 16 years.
If you’ve got another no annual fee card that’s 10 years or older and plan to keep it for the next 10 years, you should be fine. Credit cards that are closed in good standing stay on your report for 10 years.
@Meade
Once this card drops off your report in 10 years, your oldest card will be 26 years old. You probably won’t see any impact on your credit score.
You likely won’t see much of an impact. The card will stay on your report for the next 10 years. As long as you have another card you plan to keep during that time, you’ll be good.
Bennet said:
You likely won’t see much of an impact. The card will stay on your report for the next 10 years. As long as you have another card you plan to keep during that time, you’ll be good.
If you’re not using it, there’s no point in paying the annual fee. I’d wait until just before the next fee hits and then close it. I did the same with my AMEX Green, and I’m closing my AMEX Gold next month too.
There’s no point paying $150 if you’re not using the card. You could try asking Amex for a retention offer, but if they don’t give you one, just cancel it. The card will still be on your account for 10 more years. Unless you don’t have any other credit, you likely won’t take much of a hit to your score.
It’s not worth paying $150 every year for a card you don’t use.
If you’ve got good credit (like multiple cards, high credit limits, and other types of credit like a mortgage or car loan), canceling it shouldn’t bring you below 800. As long as you don’t plan to apply for new credit soon, you should be fine. Your score will recover, and you’ll save $150 a year.
You could downgrade to the Traditional Green card, which fewer people know about. It still has an annual fee of $55 but doesn’t earn rewards. But with your credit score, whether you keep the card or not, you should be fine for any future credit applications as long as it matches your income.
Since this is a charge card, it won’t affect your utilization rate, and it’ll stay on your report for 10 years. With a credit score of 830, even if your score drops a bit, it likely won’t be more than 50 points. Once you’re above 760, you’re already getting the best rates for things like mortgages. You’ll be fine.
I have an Amex Platinum I’ve been thinking of closing, but I keep getting retention bonuses, and I use the lounges a lot, so it’s worth it for me. If Amex messes up the Platinum like they did with some other cards, I’ll close it. I’ve been using up my points, and once they’re gone, I’ll be ready to move on.
@Unclewaffl3s
I crunched the numbers, and for me, using 2% or 2x points cards or sticking with my Amex combo works better than moving to Chase. But it depends on your spending habits.
Meade said: @Unclewaffl3s
I crunched the numbers, and for me, using 2% or 2x points cards or sticking with my Amex combo works better than moving to Chase. But it depends on your spending habits.
I use Navy Federal Credit Union’s Amex, which covers most of my spending categories except for travel.