Taking the First Step to Simplicity
Last night when I called American Express to dispute the seemingly never ending charges on my Costco card from Netherlands (yes, it came again and AMEX only told me to be [more] patient after 8 weeks of investigation), I took the first step toward simplifying our finance by asking AMEX to close one of my accounts.
After reviewing our financial status early this week, I realized, as many comments suggested as well, I have way too many credit cards. Though I don’t really worry about the impact of a large number of credit cards on my credit score (it was 769 last time I checked it), having too many non-active cards only makes managing them difficult. So I thought it’s time to reduce the numbers.
The card that I asked AMEX to close is a Platinum Cash Rebate card that I opened in 2001 (you can’t even find this card on AMEX website any more). At that time, it paid a little over 1% on rebates and it was quite a good offer back then. But now 1% rebate is almost a standard for cash reward cards and there are plenty cards offer more generous cashbacks. I used the card for only about a year, then abandoned it later after switching to other cards for better deals. Apparently, there’s no convincing reason for me to keep the card open, except that it’s much older than a few cards I want to keep.
After closing the Cash Rebate card and moving the credit line to the Costco card, I still have two AMEX cards: the other one being an Optima Platinum card. Though I currently don’t use this card, I plan to keep it just in case for whatever reason I don’t want the Costco card (mainly the concern of the unauthorized charge from Netherlands).
Besides the AMEX Cash Rebate card that I just closed, there are a few I am considering to get rid of:
- Chase Cash Rewards Card
- Chase Sony Card
- Citi Dividend Card
- Bank of America Card
- Discover Miles Card
Since for the last two I still have balance transfers with them, I will have to wait till November to close the cards.
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