James had always been meticulous about his finances. He loved the benefits of his American Express Gold Charge Card and MRCC (Membership Rewards Credit Card). However, one fine day, while scrolling through a financial forum, he stumbled upon a shocking revelation—if he had applied for the MRCC via referral, his annual fee would have been only ₹1,500 instead of ₹4,500. That realization hit him like a truck!
“American Express Card: Could I just cancel my MRCC and reapply via referral to take advantage of the lower fee?” he wondered. But doubts started creeping in. “Would AmEx allow me to apply again for the same card? Is there a cooling-off period? Would this impact my credit score?”
If you’re like James and facing the same dilemma, let’s dive deep into whether canceling and reapplying for the same American Express card is a good idea, and how to do it the smart way.
Understanding American Express Card Cancellation and Reapplication
Can You Cancel an American Express Card and Reapply for the Same Version?
The short answer is yes, but there are conditions and risks involved.
American Express allows customers to reapply for the same card after cancellation. However, there are a few things you need to be aware of before making a move:
- Cooling-Off Period: AmEx might require a waiting period before approving a new application for the same card. This can vary from 3 to 12 months.
- Welcome Bonus Restrictions: If your goal is to earn a sign-up bonus, be aware that AmEx has a once-per-lifetime rule for many of its cards.
- Creditworthiness Check: Canceling and reapplying means another hard inquiry on your credit report, which may affect your credit score.
The Referral vs. Direct Application Difference
- If you apply for the MRCC via referral, your annual fee will be ₹1,500 instead of ₹4,500.
- However, if you cancel your current MRCC and reapply, American Express may not guarantee approval.
- Some banks also flag customers who frequently cancel and reapply for financial benefits.
Step-by-Step Guide: How to Reapply for the MRCC with a Referral Offer
Understand the Cooling Period
- American Express usually enforces a cooling period of 3-12 months before reapplying for the same card.
- You can call AmEx customer support and confirm the exact waiting time for reapplication.
Check for Existing Offers
- Log into your American Express account and check if you are pre-approved for the MRCC again.
- Sometimes, AmEx may offer an upgrade or a lower fee directly instead of cancellation.
Cancel the MRCC Strategically
- If you’re sure about canceling, contact AmEx customer care and formally request cancellation.
- Ensure all pending dues, rewards points, and benefits are used before canceling.
- Ask the agent about any cooling period policies before reapplying.
Reapply via Referral
- Once the cooling period is over, use a referral link from a trusted friend or AmEx user.
- Submit your application with the referral benefit ensuring the ₹1,500 annual fee.
- If declined, wait a few more months and improve your credit score before trying again.
Pros and Cons of Canceling and Reapplying for the MRCC
Pros:
- Lower annual fee of ₹1,500 instead of ₹4,500.
- Potentially earn a referral bonus or welcome offer if AmEx permits.
- Fresh credit line may slightly improve credit utilization ratio.
Cons:
- Cooling-off period could be up to 12 months, delaying reapplication.
- Risk of denial, affecting your ability to get future AmEx cards.
- Hard credit inquiry, which might temporarily lower your credit score.
- Loss of existing rewards and benefits associated with the old MRCC.
Alternative Options Instead of Canceling
If you want to reduce your annual fee without canceling, here are some other options:
Call Customer Care and Negotiate
Sometimes, AmEx provides retention offers where they reduce the annual fee or provide statement credits.
Downgrade to Another Card
If you find the MRCC fee high, consider downgrading to a lower-tier American Express card with fewer benefits but a lower fee.
Upgrade to a Premium AmEx Card
If you’re spending a lot, consider upgrading to a Platinum Card or other high-tier AmEx options that provide better rewards and justify the fee.
Frequently Asked Questions
How long should I wait before reapplying for an American Express card after a denial?
It’s generally recommended to wait at least 30 days before reapplying after a denial. However, reviewing the reason for rejection and improving your credit profile can increase your chances of approval.
Does American Express have a limit on how many cards I can hold?
Yes, Amex typically allows a maximum of 5 credit cards per person (excluding charge cards like Platinum or Gold). If you’re at the limit, you may need to close an existing card before reapplying.
Can I earn a welcome bonus again if I reapply for an Amex card?
American Express has a “once per lifetime” rule for welcome bonuses on personal cards, meaning you usually can’t earn the bonus again if you’ve had the card before. However, targeted offers and business cards may have different rules.
Will canceling an Amex card impact my chances of future approval?
Closing a card can affect your credit utilization and account age, but it doesn’t necessarily prevent future approvals. Keeping a strong credit profile and history with Amex can help when reapplying.
What factors improve my chances of getting approved for an Amex card after a previous denial?
Strengthening your credit score, income, and payment history, reducing existing debt, and waiting at least 6 months before reapplying can significantly improve approval chances. Additionally, checking for pre-qualified offers may help.
Conclusion
Reapplying for an American Express card requires a strategic approach to maximize approval chances and benefits. Understanding eligibility rules, welcome bonus restrictions, and credit profile requirements can help you make informed decisions. Before reapplying, it’s crucial to improve your credit score, reduce outstanding debt, and check for pre-qualified offers to enhance approval odds.
By timing your application wisely and leveraging Amex’s policies on multiple cards and rewards eligibility, you can optimize your chances of securing the best card for your financial needs. Whether you’re looking to upgrade your rewards strategy, access premium perks, or rebuild your Amex relationship, a well-planned approach ensures you get the most value out of your next application.
