From Zync to PRG. Credit Score related

Old Feb 6, 12, 3:41 pm
  #1  
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From Zync to PRG. Credit Score related

Hello fellow members,

In June of 2011 I applied and got approved for the Zync card, this was my first charge/credit card. Last week on a whim I went and applied for the PRG not expecting to get approved, lo and behold it got approved and it arrived the next day.

Now I have no need for my Zync card and I was wondering, if I went and cancelled it would that hurt my credit score? Or is there a way I can have my Zync convert to the PRG? What would you guys recommend I do?

Also do the points I have in my Zync card do they automatically convert to MR points from MR Express?

Thanks.
Snake201 is offline  
Old Feb 6, 12, 8:32 pm
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Does Zync have a credit limit? Is it free? If free, just keep it. You can't transfer the credit limit over since PRG has no official credit limit
leftpinky is offline  
Old Feb 6, 12, 9:05 pm
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I recall reading (somewhere on here) that while you can downgrade to Zync, upgrades from Zync are not allowed.

EDITED TO ADD:

Your current MR Express points will automatically convert to regular MR points and all future points earned on the Zync (should you decide to keep it) will be regular MR points.
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Old Feb 6, 12, 9:55 pm
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Originally Posted by Snake201 View Post
Hello fellow members,

In June of 2011 I applied and got approved for the Zync card, this was my first charge/credit card. Last week on a whim I went and applied for the PRG not expecting to get approved, lo and behold it got approved and it arrived the next day.

Now I have no need for my Zync card and I was wondering, if I went and cancelled it would that hurt my credit score? Or is there a way I can have my Zync convert to the PRG? What would you guys recommend I do?

Also do the points I have in my Zync card do they automatically convert to MR points from MR Express?

Thanks.
I would just leave it open until the one year anniversary. If you want, you can convert it now to an Amex Blue card with no annual fee. That way, you can forget about the card indefinitely.
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Old Feb 6, 12, 10:49 pm
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Since it is the OP's first credit card (I assume ever), I would not advise closing it for several years. If the annual fee is high, change it to a free card.
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Old Feb 6, 12, 11:19 pm
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I think it's a free card, but he just got it 6 months ago, so wouldn't really matter. Besides, with AMEX, his PRG will show the same date as the old Zync card, so it doesn't matter
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Old Feb 6, 12, 11:56 pm
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Hi Snake201, welcome to FT!

The Zync card has a $25 annual fee.

It is too late to (even consider) upgrade your Zync card to the PRG card, as you have already been approved for the PRG card.

You can decide whether keeping it for $25/year makes sense to you or not. There is also the possibility that AmEx will credit you the $25 if/when you call to cancel the card (speak to the retentions dept). In any event, I'd keep it at least until it's closer to the 1 year mark .... right now it's not costing you anything to keep it.
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Old Feb 7, 12, 12:18 am
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Originally Posted by CodeAdam10 View Post
Hi Snake201, welcome to FT!

The Zync card has a $25 annual fee.

It is too late to (even consider) upgrade your Zync card to the PRG card, as you have already been approved for the PRG card.

You can decide whether keeping it for $25/year makes sense to you or not. There is also the possibility that AmEx will credit you the $25 if/when you call to cancel the card (speak to the retentions dept). In any event, I'd keep it at least until it's closer to the 1 year mark .... right now it's not costing you anything to keep it.
You are right it makes no sense to cancel it now since I already paid the fee. But I do like the idea of just switching to the Amex Blue card and forgetting about it.

Now that I am getting in to this whole mile/points business. Where do I go to for the beginners guide to maximize points and get free trips/upgrades/access to clubs? Any help would be greatly appreciated.
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Old Feb 7, 12, 7:48 am
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Originally Posted by Snake201 View Post
You are right it makes no sense to cancel it now since I already paid the fee.
American Express will automatically issue a prorated refund of the annual fee if you cancel. However, before you do this consider if you may benefit from using Zync for spending in certain categories where it can earn double points if you apply the appropriate "pack".
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Old Feb 7, 12, 9:02 am
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its only been 6month, so cancelling really won't hurt you much...
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Old Feb 7, 12, 3:00 pm
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Originally Posted by Snake201 View Post
You are right it makes no sense to cancel it now since I already paid the fee. But I do like the idea of just switching to the Amex Blue card and forgetting about it.

Now that I am getting in to this whole mile/points business. Where do I go to for the beginners guide to maximize points and get free trips/upgrades/access to clubs? Any help would be greatly appreciated.
There is no beginners guide - to get all the information you have to really read through all of this board, and the companion boards.

I will tell you generally that:

a) Airline club access usually only comes with cards with a fee of several hundred dollars, although a few cards will give you a couple passes as their signup bonus. (But sometimes you have to be traveling the same day on that airline.)
b) Upgrades generally only go to those flying a lot on a particular airline. Some cards give you some "elite qualifying miles" if you spend enough, but you'll still have to fly a lot on that particular airline in the previous year.
c) Generally, consider your points worth about a penny each. So if you are spending $10,000 a year on a credit card, you are not going to get anything magnificent. Various cards have signup bonuses of 25-50,000 points (in some cases a little more) but you will have to spend a certain amount in the first few months to realize that. If you can accumulate 100,000 points, you can usually get an overseas business class ticket, but not necessarily exactly where you want to go on the dates you want to go.

Without knowing how much you will be spending, but assuming it's not a lot, your best chance to get good value for your points is to save them and use them oppotunistically for a last-minute ticket somewhere you decide to go at the last minute. While paid airfares almost always go up as the flight approaches, that is NOT the case with free tickets. You might find a $200 ticket six months from now that requires 40,000 points. On the other hand, a couple years ago I found a ticket the night before a flight for 25,000 points that would have cost $2,000 if I had purchased it.

The good thing about Amex points is that they don't expire and you can use them on multiple airlines, so if one airline doesn't have tickets to where you want to go, you can try another. But keep in mind that to transfer your points you will have to have a green/gold/platinum Amex card, which will have an annual fee.

I would strongly advise you NOT to use them for gift cards or merchandise, unless there is an unusually good promotion. OTOH, if you find yourself sure you would want your points on a particular airline, you should take advantage of transfer bonuses. My wife lives in Canada and Air Canada has a bonus every December where I get extra miles if I transfer Amex points to Air Canada, so I take advantage of that. Delta and British Airways also do that frequently.

By far the best "value" in terms of points compared to what you would pay for a product, is international business or first class. 100,000 points at the right time will get you a ticket you'd have to pay $5,000 for. But would you really PAY $5,000 for that ticket? I wouldn't.
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Old Feb 12, 12, 12:10 am
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I can't believe what horrible advice you are both giving the OP.....

Originally Posted by onefasteuro View Post
its only been 6month, so cancelling really won't hurt you much...
The card being open for six months will actually affect your credit ratings. Specifically, "average age of accounts". Assuming your card has always been paid on time, it will stay on your account for the next 10 years. However, since it was only open for six months, it will always be averaged into your aged accounts as a 6 month old account. For example, if you have two cards on your credit report 10 years from now. One still open, and this one that you closed, your average age will be 10 years + .5 years /2 = 5.25 years.

Originally Posted by bluto View Post
I would just leave it open until the one year anniversary. If you want, you can convert it now to an Amex Blue card with no annual fee. That way, you can forget about the card indefinitely.
A Zync card is a charge card and a Blue card is a credit card. You cannot convert one to the other! Furthermore, there is no 'credit limit' to transfer from the Zync to the Blue. If the OP wants a Blue card it will be a new application.
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Old Feb 12, 12, 1:18 pm
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Originally Posted by TommyC80 View Post
I can't believe what horrible advice you are both giving the OP.....



The card being open for six months will actually affect your credit ratings. Specifically, "average age of accounts". Assuming your card has always been paid on time, it will stay on your account for the next 10 years. However, since it was only open for six months, it will always be averaged into your aged accounts as a 6 month old account. For example, if you have two cards on your credit report 10 years from now. One still open, and this one that you closed, your average age will be 10 years + .5 years /2 = 5.25 years.



A Zync card is a charge card and a Blue card is a credit card. You cannot convert one to the other! Furthermore, there is no 'credit limit' to transfer from the Zync to the Blue. If the OP wants a Blue card it will be a new application.

Thanks for the advice. If you were in my shoes what would you do?
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Old Feb 12, 12, 3:22 pm
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Just leave it open for a year and close it right before renewal time.
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Old Feb 13, 12, 12:04 am
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Assuming AMEX keeps doing the small business Saturday promotions, the net cost of keeping a Zync card open is zero.
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