Change type of credit card?

[musicguy]

I recently opened a credit card with a high annual fee. There were reasons for opening this, but let's not deal with that. I don't want to pay this next year. This year the fee was free.

I have excellent credit and don't want it to affect my credit. I know, if I didn't want it to affect my credit I probably shouldn't have opened it. Will Amex allow me to change the type of credit card it is (to a fee-free account)? If so, does this count as closing the account? I would just close the account, but think it may affect my credit worse than if amex allows me to change the type of account it is.

 

[JohnGalt]

Is it a credit card or a charge card? If it is a charge, you should be able to change it to a lower-fee charge card and it won't count as a closed account (you'd even have the same account number most likely).

 

[Michigan Planner]

If you have a card or two that you've had longer and have a much longer history with, cancel (or moving this account into a different product even if it counts as closing this original account), shouldn't ding your credit score too much since this account doesn't make up a large portion of your credit history.

FWIW, I once had a card that had an annual fee and I didn't want to pay it. Each time it came due, I would call and complain and they always waived the fee for me. YMMV.

 

[JohnGalt]



FWIW, I once had a card that had an annual fee and I didn't want to pay it. Each time it came due, I would call and complain and they always waived the fee for me. YMMV.

Does not work with Amex

 

[musicguy]

^^ this.

It also doesn't work with Citibank cards... Did it for the second year and tried it the next. They wouldn't credit me the fee. I pay 80 bucks a year for one point per dollar for AA frequent flier miles. I also get lots of offers for 0% on balances for a year. It's worth it for me.

Anyway, thanks for the responses.

Yes I have other cards, some 11 years old.

It's a charge card. Sorry for the terminology mixup. It's an Amex Premier Rewards Gold Card. I will call to try and change the type of card it is.

 

[JohnGalt]



t's an Amex Premier Rewards Gold Card. I will call to try and change the type of card it is.

Just an FYI - with this card you get 15,000 bonus membership rewards points when you reach $30,000 in spending per year. Those points are worth at least $150, which helps to offset the annual fee of $175.

 

[musicguy]



Just an FYI - with this card you get 15,000 bonus membership rewards points when you reach $30,000 in spending per year. Those points are worth at least $150, which helps to offset the annual fee of $175.

I had a super special offer (you have to be pre-selected) with 50,000 bonus points when I spent $500. That was a nice little BB shopping spree. The card also gives 3x points for travel, which I use a lot. Still, I don't think I can justify $175 a year, even though the card is good.

 

[JohnGalt]

The 15k points for $30k spend is a feature of the card that is always present, every year, regardless of other offers you may have received. If you will meet that spend level, it effectively makes the annual fee go down to $25. When you then factor in the bonus points from purchases, it makes it even better.

 

[musicguy]



The 15k points for $30k spend is a feature of the card that is always present, every year, regardless of other offers you may have received. If you will meet that spend level, it effectively makes the annual fee go down to $25. When you then factor in the bonus points from purchases, it makes it even better.

Woah, didn't realize that... This would be nice if I still lived in the states. But I moved outside of the states after I got the card and get paid in foreign currency. I'll definitely spend a lot more money if I pay for things with it here. Thanks for the help John.

 

[Trompe le Monde]

you can call and "downgrade" your card to amex green at 95$/year

 

[JohnGalt]



Woah, didn't realize that... This would be nice if I still lived in the states. But I moved outside of the states after I got the card and get paid in foreign currency. I'll definitely spend a lot more money if I pay for things with it here. Thanks for the help John.

Are you getting whacked with Amex's foreign currency transaction fee though?

 

[Trompe le Monde]

amex platinum has no forex fees , as is chase sapphire preferred (95$) , and many fee-free capital one visas

 

[musicguy]



Are you getting whacked with Amex's foreign currency transaction fee though?

The one time I used it I seem to remember there was a fee. Anyway, the rate to USD sucks ass right now, so it's not a good idea. It's also difficult to send money to the US. Chile is infamous for making it difficult for expats to do banking here. I still can't open a bank account, even though I have temporary residency and a work contract. It's quite hilarious bringing millions of pesos home every month for my salary. Huge stacks of 100s of 10,000 peso notes. The highest bill they have here is a 20,000 note (~40 bucks) which no one likes to break. I have to go to the metro to get change which is a hassle. My only choice to send money to the US is Afex which charges 30 bucks to send, and my bank charges 16 bucks. Western union is here too, but I think it's even more expensive.

 

[musicguy]



amex platinum has no forex fees , as is chase sapphire preferred (95$) , and many fee-free capital one visas

I might upgrade to amex platinum next year once I've paid off all my bills in the US. I plan on doing a lot of traveling and will definitely like to use the airport lounges for free. Using a lounge once or twice will more than have paid for the card. I would also like to be able to use a charge card overseas and not have to worry about fees. I won't be able to get a credit card here until I have permanent residency (at least 2 years).

 

[Trompe le Monde]

if your travel is in an area where cash is king (e.g. south america), look into a schwab account. the debit transactions are forex-fee and atm-fee-free. there is also 0 fee to hold the checking account itself.