LikeVines

Sorry to hijack this post, but what are everyone's thoughts on downgrading to a no-annual-fee card?

SFOPhD

Many of us prefer to downgrade instead of cancel to:
1) Maintain the credit line with a bank to possibly transfer to a new card later.
2) Keep the average age of accounts long for credit scores.
3) Be able to being a conversation with a reconsideration line by saying "I've been one of your customers for X decades."

Some banks have limits on the number of cards you can have with them, for example Chase, and in those cases I would cancel. In most other cases, I would convert to a no annual fee card if possible.

regoarrarr

Pulled the trigger yesterday

Auto-Approved:
Me Chase Southwest Rapid Rewards Plus
Me Amex Delta
Wife Chase Sapphire
Wife Citi Hhonors Visa Signature
Wife Amex Delta

Approved after call:
Me Citi Hhonors Visa Signature

Further review:
Me Chase Southwest Rapid Rewards Plus Business
Me Barclays US Airways
Wife US Bank Club Carlson Premier Signature Visa
Wife Barclays Best Western Mastercard

Waited:
Me Citi AA Business Mastercard

A few notes

1. On my Citi HHonors Visa, I already have 2 cards open with Citi, so they wanted to either give me a reduced credit line of $6K or re-allocate some of my limit - I chose to just take the $6K)

2. I screwed up on my Amex Delta card - I used the link from FT, but it just took me to the main AmericanExpress.com page (since I already have an account with them). When I chose the Delta gold card, I did not realize until afterwards that it was just the "publicly available" card that only gives 10K points after first purchase. I plan to call and see what I can do about getting matched to the one on creditcards.com, but we shall see... Chalk it up to a lesson learned - when I did my wife's application for that, I did use the right link :-)

3. I plan to call the reconsideration / followup lines on the other 4 and have good hopes for those

4. I stopped on the Citi business card, because I read the link where the wikipost mentioned only 1 application of any kind per 8 days, and the examples seemed to indicate that included business and personal

envgeo

you can email them and then there is not discussion, they just close the account. do so before the AF hits and I always make sure the card is paid in full before canceling.

however, if you want more bonus points or would keep the card without the annual fee, then call.

mnscout

The thing about Barclays and US Bank is that they are super conservative. You might have a hard time explaining them why you need a bunch of cards in such a short period of time. It's always a good idea to apply for them first and see what happens before proceeding with all the other apps.

regoarrarr

Thanks for the feedback. I also called Chase about the SW business card and they said they wanted to see more payment history on the 3 cards that I currently have (Ink and Sapphire as well as the Southwest Personal I was just approved for) before they issued another business card.

Is that the "final answer" or can I call back and try a different person?

joer1212

Can I cancel my 2 Chase annual fee cards, and transfer those credit lines to my Chase Freedom?
I prefer not to have dozens of small credit lines open, but instead have a few large ones.

fl9999

You can call again, but keep in mind that next person knows that you already have spoken to someone before and that person probably left any note for your account. So you should have some new information that you can provide to get approval for this SW Card.

sharka

Yes, Chase is one bank thats willing to transfer credit lines whereas other banks won't.

sharka

Depends on if you want to sign up again in the future for the same card for the bonus. ex: Chase United Explorer have a no fee card that you can downgrade to but keeping downgrade to this card may mean no more sign ups for United cards for the bonus miles in future.

jeanie

I know it is wise to cut down churning around mortgage apps. What about switching jobs? I know potential employers are running credit checks. Has anyone waited on a churn until after the employment background check? Does this even matter?

Thanks. I have a high credit score. Last time I checked it was 804. Just wondering if they only look at the score or if they also look at the report.

jeanie

In regards to closing cards, if you are shopping for a retention offer, then call and say you are hesitant to keep the card because of the annual fee.

If want to close the account, do it by secure message. In fact, I just closed an AA business card that way. It was simple. One sentence, actually. "Please close this account, thank you."

That is all it takes. BTW, don't stay awake at night trying to keep Barclay's happy. If you are really starting to churn, then they won't be opening accounts for you in the future anyway.

joer1212

How do you send a "secure message"?

Also, should I bother with the retention bonus, or just email Chase and close the accounts? Should I close them both at the same time, or wait a day or 2 between closings?

Finally, if I transfer over my credit lines to the Chase Freedom card, won't this hurt me when I apply for future Chase cards?

FlightNurse

Most employers don't care about CC apps.

KennyBSAT

If your new job requires creative financial dealings, you should be hired based strictly on your credit report.