Author Topic: How to best avoid unwanted credit card fee?  (Read 2866 times)

mrteacher

  • Stubble
  • **
  • Posts: 242
How to best avoid unwanted credit card fee?
« on: October 18, 2016, 02:24:44 PM »
Hi everyone,

Quick question: I earned and used the AmEx Gold card bonus (50,000 points!!), and I would like to avoid the $195 fee that I am set to incur in Feb. 2017. I talked with a rep today, and as my card is a charge card, I cannot 'downgrade' to a new fee credit card to avoid the fee as I had hoped.

I could just cancel the card, but I wonder if that would affect my chances of acceptance were I to apply for an AmEx card in the future. (And how might it impact my credit score?)

Would I be better off signing up for a simple no fee AmEx (Blue Cash EveryDay), so as to remain a member with AmEx, and then cancelling my current card?

Or, am I over thinking this entirely?

Thanks!

bacchi

  • Walrus Stache
  • *******
  • Posts: 7056
Re: How to best avoid unwanted credit card fee?
« Reply #1 on: October 18, 2016, 02:36:10 PM »
Get the Blue Cash Everyday with a $100/150/250 bonus and then cancel the PRG.

Rubic

  • Handlebar Stache
  • *****
  • Posts: 1130
Re: How to best avoid unwanted credit card fee?
« Reply #2 on: October 18, 2016, 05:58:36 PM »
Assuming you want to preserve your Membership Rewards points, you'll want
to apply for an Amex Everyday card.  It has no annual fee and you can usually
find an offer for 25,000 MR bonus points.  Then, when you cancel your Gold
card in February, you'll still retain your MR points.

There should be no impact on your credit score(*), but you won't be able to
obtain the Gold Amex 50K bonus again.  You can re-apply for the card, but
no 50K MR sign-up bonus points.

If you have a hard time finding the 25K bonus offer for the Everyday card,
PM me.



* Technically a minor impact in about 10 years when your account drops of
the records, but nothing to sweat over.


WackyTomato

  • 5 O'Clock Shadow
  • *
  • Posts: 49
Re: How to best avoid unwanted credit card fee?
« Reply #3 on: October 18, 2016, 11:54:52 PM »
If you did not want to have a credit card with an annual fee, you should have looked into a free one in the first place. 

Not sure where OP is coming from with this one.  You picked a card with an annual fee.  Own up to it and pay the fee. 

I'm a red panda

  • Walrus Stache
  • *******
  • Posts: 8186
  • Location: United States
Re: How to best avoid unwanted credit card fee?
« Reply #4 on: October 19, 2016, 06:45:36 AM »
I call yearly and say I don't want to pay fees on my cards.  All but one card has always waived it. The other I canceled.


Schaefer Light

  • Handlebar Stache
  • *****
  • Posts: 1328
Re: How to best avoid unwanted credit card fee?
« Reply #5 on: October 19, 2016, 06:48:05 AM »
If you did not want to have a credit card with an annual fee, you should have looked into a free one in the first place. 

Not sure where OP is coming from with this one.  You picked a card with an annual fee.  Own up to it and pay the fee.
I totally disagree.  I just cancelled my Chase Sapphire Preferred card yesterday because the $95 annual fee was due.  They also offered me a downgrade to a no annual fee card.  The problem with the free cards is they don't come with many (if any) bonus points.

Rubic

  • Handlebar Stache
  • *****
  • Posts: 1130
Re: How to best avoid unwanted credit card fee?
« Reply #6 on: October 19, 2016, 07:19:45 AM »
If you did not want to have a credit card with an annual fee, you should have looked into a free one in the first place. 

Not sure where OP is coming from with this one.  You picked a card with an annual fee.  Own up to it and pay the fee.

Many cards have their annual fees waived for the first year.  When the fee is due
on the anniversary date, you may choose to:
  • Cancel the card.
  • Negotiate to have the fee waived again for another year.
  • Negotiate with customer services to offer extra points/miles.
  • Product change to a no-fee card.
I usually cancel the card or product change.  When I cancel, customer services often
tries to provide incentives for me to keep the account in the form of extra points/miles
for additional minimum spend requirements.

mrteacher

  • Stubble
  • **
  • Posts: 242
Re: How to best avoid unwanted credit card fee?
« Reply #7 on: October 19, 2016, 08:08:25 AM »
Thanks for the advice.

Is there any validity to signing up for a no-fee AmEx before cancelling the fee card, so that I remain in their 'good graces,' or is that nothing to worry about?

Rubic

  • Handlebar Stache
  • *****
  • Posts: 1130
Re: How to best avoid unwanted credit card fee?
« Reply #8 on: October 19, 2016, 09:06:34 AM »
Thanks for the advice.

My pleasure.  As always with advice from the Internet, please do your
own due diligence.

Quote
Is there any validity to signing up for a no-fee AmEx before cancelling the fee card, so that I remain in their 'good graces,' or is that nothing to worry about?

You definitely want to apply for the no-fee Amex Everyday card before canceling
your Gold card.  Otherwise you'll lose your MR points when the Gold card account is
closed.  Once you have your Everyday card, the MR points are automatically
shared.

Look for a 25K MR bonus offer for the Amex Everyday card.  It may help if
you search/apply with your browser in Incognito mode.