cancelling my amex charge:-(

Discussion in 'Credit Talk' started by ero2, Sep 12, 2003.

  1. ero2

    ero2 Well-Known Member

    I don't want to cancel it because I have wanted this amex gold card for so long, but I can't convince myself that it is worth 130$ a year, and I guess I will worry the entire year if I can or cannot get the annual fee lowered every year, so instead of worrying all year and hoping they will reduce the annual fee every year I have just decided to go with my gut and call and cancel it. Just venting that's all.

  2. RichGuy

    RichGuy Well-Known Member

    Why isn't it worth $130 a year?
  3. ero2

    ero2 Well-Known Member

    The customer service for the gold card is phenominally better than any other amex (except for platinum) but I don't think that alone is worth 130$ a year.

    They are great at replacing cards, and taking care of fradulent charges.

    They have BVG, and an AWESOME rewards program, but I don't know if I can justify 130$ a year for this card.

    When I only make about 12,000 a year, but will easily spend 18,000-20,000 a year on it. 130$ is actually a fairly large dent in my pcoketbook, unfortunately. But also in a way, maybe it is worth it now that I think about it:)

    I don't know, I am just having a hard time justifying 130$ a year for a credit card. Like 50$ for the citibank AAdvantage card seems like agood deal to me, but if I am wrong correct me please?
  4. RichGuy

    RichGuy Well-Known Member

    cancelling my amex charge :-(

    Here's my opinion about rewards cards:

    It's easy to get a card without an annual fee that offers you 1% rebates on purchases. And there just isn't enough money in the credit card food chain to offer you much more than that. AmEx may be the exception, because they charge higher merchant fees and may have more than 1% available for rewards.

    The two ways you really get a lot out of rewards cards are (1) spending your employer's money on a rewards card and then receiving the rewards yourself, or (2) having a rewards card that offers you hidden discounts on hotel rooms, airline tickets, etc. by giving you more for your points than you could normally buy for cash.

    Can you buy a lot with your AmEx points? Is the value you receive ultimately more than 1% of your purchases? If not, then it's hard to justify an annual fee.

    Are the rewards from AmEx things you really want and can't find elsewhere? If so, then the Gold Card is sort of your shopping service that finds cool ways to use your points. But if not, then all you can do is compare the added value (above 1% of purchases) to the annual fee.

    And if you don't want to do any calculations, then I recommend closing the AmEx account. If you're not convinced, then it's better for your peace of mind to just close it and forget about it. And I seriously doubt that they would ever reduce the annual fee, so there's no need to worry about that. Just assume they won't, and base your decision on that.

    Most people get AmEx charge cards, and pay high annual fees, so they won't have to worry. If you have to worry about your AmEx card, then it isn't serving its purpose.

    GEORGE Well-Known Member

  6. SoParkDiva

    SoParkDiva Well-Known Member

    Unless you work for an employer which requires extensive travel or a huge expense account, I don't see why anyone would spend that much money on a card. It's just not worth it to have a card for the "prestige". Prestige won't keep you out of the poor house and it certainly won't pay your annual fee.

    If you don't think the benefits/rewards of the card will justify the $130 then get rid of it or ask AMEX to replace it with a Delta gold card like ALL CAPS GEORGE and I have :)

    When I got the card I received 10,000 bonus miles and I can get double & triple miles with certain purchases like ALL CAPS GEORGE said - all for $49 annual fee.

    Good luck

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