Westpac Amex Closing Down - What's the Best Thing to Do??

OzFrugie on 07/03/2018 - 22:46

Hello fellow Ozbargainers,

As many of you would already know, Westpac will no longer offer their bank-issued Amex credit card after 4 April 2018.
It will "replaced" by Amex-issued one (though will still have Westpac branding, etc).

I am a holder of Westpac Altitude Black Credit Card (Mastercard + Amex), and I've got a letter and email from Westpac saying that if I sign up to this AMEX-issued one by 15 March, I will get 40,000 Altitude points (if I spend $3000 on the card in 3 months) and $199 first-year fee is waived.

Now, I am not sure what is the best option is.

option 1:
Is it best to take this offer and dump the card a year later (as I dont want to pay annual fee), and get fee-free Amex card (of course, I dont want to miss Amex Statement Credit deals!) ?
My concern with this is that from my understanding, when I take the Westpac offer, it will be recorded as a new credit enquiry, and a year later when I apply for the fee-free Amex card (after dumping Westpac one), it will be recorded as a new/separate credit enquiry again (!), and it will have negative impact on my credit score (?).

option 2:
Alternatively, I am thinking not to take the Westpac offer and go apply for the fee-free Amex card (any recommendations?) so that only 1 credit enquiry and less impact on my credit score.

What do you think guys?
Poll is added.

Poll Options

  • 6
    Option 1
  • 0
    Option 2
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Comments

  • good grape on 07/03/2018 - 23:13

    I'm thinking about the same thing too

    • mskeggs on 08/03/2018 - 07:54
      +1

      People in that forum are sure pricks to each other.

  • Iamnotcheap on 07/03/2018 - 23:27

    Are you planning on doing any big capital purchases in the next year that would require credit checks that would have you worried?

    Run you score now with the likes of Veda and if you score is great, don’t fuss about it.

    I like Amex deals, so I make a conscious decision to keep an Amex card (currently with Westpac and am opting for the new card).

    • OzFrugie on 08/03/2018 - 22:57

      I am not planning on doing any big capital purchases within next year.
      I checked with Experian and I am under Very Good 788 points (not sure why I am not on Excellent!).

      How bad is the impact of having credit (card) enquiry to credit profile?
      eg. will it reduce my point by 100s or merely few points?

      Is there any guideline made public somehow?

  • bluesky on 07/03/2018 - 23:58
    +1

    Be mindful, OP, you only get one go at scoring large bonus points with Amex-issued card – see my comment to the other OP. So option 2 means you lose that opportunity.

    Also worth your while to check with Amex – maybe they won’t need another credit card query, if you take option 1 now and downgrade to a no-fee card in one year’s time. Not sure about this. But if you do find out, pls let me know - I am curious about this too.

    • OzFrugie on 08/03/2018 - 23:23
      +1

      Thank you. Very helpful post!

      Good point re: credit card query - I will call Amex tomorrow. Will update here if I get an answer..

      The AMEX Essential Card looks interesting. May get that one next.
      Btw for the supplementary card, does it have different number?
      For Westpac AMEX currently, they are the same numbers.. not good for Amex deals hahah..

      • bluesky on 09/03/2018 - 04:50

        Look forward to your update. Thanks.
        Oh yes, Amex supp cards are all different numbers :-)

        • OzFrugie on 09/03/2018 - 10:47

          So… I called AMEX and they told me that if I apply for this Westpac AMEX-issued card this year, it will create a new credit enquiry in my credit profile (I guess we already know that).
          If I close this card next year and apply for another/different AMEX-issued card, she said it will create another credit enquiry record against my credit profile (assuming she knows what she was talking about)!

          I'm not sure what to do..
          On one hand, 40k Altitude points can equal to $200 (0.5% return rate when it has 30% cashback discount).
          I have 2 WBC-issued AMEX cards under my name (in real life, one used by me and one used by my partner) and both are offered this deal, so in theory I can gain $400 by taking the offers. Pretty good deals.
          But if I take both deals, there will be 2 credit enquiry records in very short period against my credit profile, which I believe will dent my credit score, especially I recently also refinanced my home loan!

          I am wondering if it is possible to take both offers but change the primary holder of the second card to my partner.
          That will my credit record will only get one 'hit'.
          Not sure if WBC will honour the offer that way though..?

        • bluesky on 09/03/2018 - 12:12

          @OzFrugie: Thanks for the update. I must admit I cannot understand why a new credit query is needed if one is essentially swapping and “downgrading” to a card that has less stringent income requirement. They just have to make sure to give the same (or lower) credit limit - and there is no increased risk for them.

          And you are right, sometimes their personnel can give wrong info too. Which is why, if I consider an issue important enough, I call more than once, just to see if I get consistent replies.

          But if I take both deals, there will be 2 credit enquiry records in very short period against my credit profile, which I believe will dent my credit score, especially I recently also refinanced my home loan!

          If you have already refinanced you home loan, I guess the questions are:
          - Is the credit score in the immediate future that important to you?
          - How good need it be? Do you expect to be applying for anything else, other than to swap Amex card in 1 year's time?

          Certainly no harm finding out if you can transfer one offer to your wife (chances may not be high, they will consider you guys as separate individuals). Worth asking, nevertheless.

          Sounds like you have some decisions to make. Well, all the best!

        • OzFrugie on 09/03/2018 - 12:44

          @bluesky:

          Thanks, @bluesky.

          Yep will probably call AMEX again to see if they give me consistent answers (I hope I dont get the same person lol!)
          And will also ask WBC about changing the name to my partner.
          I will update here if I have the answer(s).

          I dont have immediate plan to do big purchase, but I am wondering how credit score actually works.
          Say if my credit score gets lower after taking this deal, how long before my credit score increases again?
          And will that increase naturally over time assuming no negative events or I need to do something for my credit score to increase in the future?

        • bluesky on 09/03/2018 - 12:51
          +1

          @OzFrugie: From what I understand, if there are no events, the score will improve. But as to how fast this happens, I cannot say. Personally, I am not into card-churning, so not much opportunity to observe this.

          PS: Correction

          if you can transfer one offer to your wife partner ..

          Sorry … not reading carefully and just typing away :-)

        • OzFrugie on 10/03/2018 - 15:25
          +1

          @bluesky:

          Asked Westpac if the offer can be for my partner as well and as expected they said no.. I guess I will only take the offer on one of the cards then, not both as I don't want my credit score suffers too much..
          Will ask for a supplementary card for my partner

          Will close it next year when I will need to start paying the annual fee. Then, ask my partner to apply for Amex Essentials and apply for supplementary card for me.

        • bluesky on 10/03/2018 - 15:40

          @OzFrugie: Sounds like a good plan :-)

  • poppit88 on 08/03/2018 - 00:37
    +4

    I'm closing my account with them. No point having the card anymore and paying the annual fee.

    • OzFrugie on 08/03/2018 - 23:23

      But the offer is $199 waived for the first year..then you can dump it for another (AMEX) card.. (assuming you also get the offer)

  • SmiTTy on 08/03/2018 - 16:14
    +2

    I took advantage of the recent amex deal and got 100k velocity points - i'd suggest you wait around and see if you can get something better than the 40k . These seem to happen every now and then.

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