How to not close AmEx card but not pay annual fee.
November 1, 2011 3:16 PM   Subscribe

Rewards for AmEx card now suck, but am paying annual fee. Anyway to transfer my 'history'?

We have a Delta SkyMiles card via American Express. We have had it for about 4 years now and has skyrocketed our credit. After the first year we found out trying to use miles to the two desitantions we wanted to is nearly impossible. We then started cashing them out for items and gift cards. However now they only allow us to get gift cards is $100 increments, for way more points, but with much less selection. I do not want to 'close' the account because I want my credit to stay the same if not get better. However we are kind of over the card and the $75 annual fee that goes with it. If we were able to keep the card without the fee we would be fine. We pay it off every month unless it is a huge expense that is somewhat a surprise. Will AmEx let me switch to another card with the same limit and have it not impact my credit as a closed account? Any other tips?
posted by NotSoSimple to Work & Money (6 answers total) 2 users marked this as a favorite
 
Apply for another Amex card which does not have an annual fee, and then after that one starts reporting, close your SkyMiles.

Amex, unlike other creditors, reports new cards from existing cardmembers as if they've been open since the relationship began. So your new card will show up on your credit report with four years of history. Then you can close your current card, which shouldn't affect your credit since your new card will report with the same history. I'm not sure if your new card will have the same limit at first, but after you close your SkyMiles you can ask for the limit to be increased if it's too low.
posted by rabbitrabbit at 3:35 PM on November 1, 2011


What rabbitrabbit said: plus, AmEx phone support is really very good and responsive, so call them and explain what you're looking for.
posted by holgate at 3:47 PM on November 1, 2011


Open new account, transfer credit limit to new account, (minus whatever they make you keep on the old card), close old account. Pretty simple. Amex might even be able to do a straight conversion, but something in the back of my head is telling me they may be one of the few companies who won't.
posted by wierdo at 6:13 PM on November 1, 2011


See if you can switch to the Amex Blue card. I don't pay an annual fee and I just recently connected my reward points with my Amazon account. Amazon lets me know how much $ I have in points so I can buy anything I want.
posted by Nolechick11 at 7:20 PM on November 1, 2011


The conversion rate on pay with points is pretty bad, though. It's 142 points/dollar, at least for me. I prefer to take 100 point/dollar gift cards. My SO likes it when I get Melting Pot cards.
posted by wierdo at 7:43 PM on November 1, 2011


Response by poster: Yeah the points suck, however it is way better than being sacked into ONLY using Delta SkyMiles.
posted by NotSoSimple at 10:53 AM on November 2, 2011


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