American Express Platinum card annual fee hike: How it affects your credit score and options for cancellation.

American Express Platinum cardholders are concerned about the recent annual fee hike to $895. Cancelling the card may hurt credit scores, but it's not a credit card, so credit utilization won't be affected. Instead of cancelling, consider asking for a retention offer from Amex, which could provide cash, points, or miles to keep the card.

American Express recently announced a significant increase in the annual fee for its Platinum card, raising it to $895. This change has sparked concern among cardholders who are now contemplating whether to cancel their cards or seek alternative solutions.

The Platinum card is a charge card, not a traditional credit card, which means it has no preset spending limit and requires full payment each month. Unlike credit cards, canceling a charge card does not severely impact credit scores, as credit utilization, which is a key factor in credit scoring, is not affected by charge cards. This is because charge cards do not have credit limits, and thus, do not contribute to credit utilization rates I don’t want to pay the new $895 American Express Platinum fee — but will canceling the card hurt my credit score?^[1].

However, canceling a charge card account will still be reported to the credit bureaus as "closed at consumer request," which can potentially decrease your credit score. Although the impact is minimal, it is important for cardholders to consider their individual financial situations before making a decision I don’t want to pay the new $895 American Express Platinum fee — but will canceling the card hurt my credit score?^[1].

One alternative to canceling the card is to request a retention offer from American Express. The company may offer cash, points, or miles to incentivize cardholders to keep their cards. This strategy can be particularly effective if you have a strong payment history and have been a long-term cardholder I don’t want to pay the new $895 American Express Platinum fee — but will canceling the card hurt my credit score?^[1].

Another option is to downgrade to the American Express Gold card, which has an annual fee of $325. This option might result in the loss of a sign-up bonus, as you would be transferring your line of credit to a new card, and welcome offers only apply when opening a new account. However, this could be a viable option if you still want to maintain the benefits associated with the Amex Platinum card but at a lower cost I don’t want to pay the new $895 American Express Platinum fee — but will canceling the card hurt my credit score?^[1].

Before making a decision, it is essential to consider the value you derive from the Amex Platinum card. If the savings from using the card exceed the $895 annual fee, it might be worth keeping the card and negotiating a retention offer with American Express. This approach can help you maintain your benefits while potentially reducing your annual expenses I don’t want to pay the new $895 American Express Platinum fee — but will canceling the card hurt my credit score?^[1].

In conclusion, American Express Platinum cardholders face a challenging decision with the recent annual fee hike. While canceling the card may have minimal impact on credit scores, requesting a retention offer or downgrading to a Gold card are viable alternatives. It is crucial for cardholders to evaluate their individual financial situations and the value they receive from the card before making a decision.