Reduce Credit Limit and pro rated refund

[ekposh]

All

I am thinking of applying for a Platinum Amex for a number of reasons but mainly the intro bonus as I have some large spend coming up and some of the perks.

Im also eventually hoping to get a pro rated refund at some point as I doubt I will need it much past the summer. A few questions:

– there has been a lot of talk of the pro rated refund vanishing. Would I be right in assuming that as long as I get my card before an announcement is made (assuming it is), I will have a certain time frame to cancel and get a refund if I so wish?

– I have a few other credit cards I want to keep for perks but dont use much. Would it be prudent to reduce the credit limit on these? As in, would this increase my chances and credit limit on the Platinum?

Cheers

[NorthernLass]

My understanding is that the pro-rata refunds are not official Amex policy, so they could change this at any time and you would have no redress. That said, proposed changes do seem to have been put on hold.

Reducing your credit limit on other cards is always likely to improve your chances of being approved, I’d probably close any that you no longer have use for as well.

[ekposh]

Thanks, hadn’t appreciated it wasn’t an official policy but you’re quite right in that the T&Cs clearly say the fee is non refundable.

Edit: actually it seems it is contractual as it says “if card benefits are offered and you no longer want them, a pro rata refund will be offered”

This would suggest they’d have to give you fair warning.

[JDB]

ekposh wrote:

Thanks, hadn’t appreciated it wasn’t an official policy but you’re quite right in that the T&Cs clearly say the fee is non refundable.

Edit: actually it seems it is contractual as it says “if card benefits are offered and you no longer want them, a pro rata refund will be offered”

This would suggest they’d have to give you fair warning.

@ekposh – what that means is that if Amex notifies you of a change of benefits or terms that you don’t wish to accept, you can cancel for a pro-rata refund. In standard circumstances, the automatic right to a pro-rata refund was removed from the terms 15 months ago but while not implemented yet, is still a term to which you have agreed.

[ekposh]

@JDB, thanks. Must be reading old T&Cs then as they clearly state “if you want to”. I did a Google search so probably picking up an old document. Thanks.