Trying to reopen a canceled Amex card? You'll have to pay a $25 fee for that

If you recently canceled a premium American Express card and now regret it, you may not be too happy to hear that Amex is charging a $25 fee to reinstate canceled cards, as first reported by Doctor of Credit.

Additionally, the $25 fee will not go toward the annual card fee. The canceled card is also still subject to approval, which could take up to 10 business days.

Related: Here's why you should never close your credit card before the one year mark

With travel restrictions in place due to coronavirus, many cardholders couldn't justify the high annual fees on some of the premium cards like the Amex Platinum, therefore decided on canceling. It wasn't until May 1 that Amex announced it would be adding new credit card perks as a part of its coronavirus response.

However, now that there's new, more applicable statement credits available for purchases such as streaming services, wireless phone service and prepaid trips, it's not surprising that people are reopening closed accounts.

While a reinstatement fee is certainly annoying, if you can really max out and find value in the new perks it may be worth reinstating.

If these new perks still don't make sense for you, it's worth considering your options before canceling your card.

Alternatives to canceling a credit card

As a general rule of thumb, you shouldn't go canceling your credit cards willy nilly. Instead, you should consider other, less credit damaging options first.

Ask for a product change

If it's a pricey annual fee that's pushing you toward canceling, consider downgrading to a lower or no annual fee option instead. For instance, if you can't justify forking up the $695 for The Platinum Card® from American Express (see rates and fees) during these uncertain times in travel, call Amex and see if you can switch to a card like the American Express® Gold Card, which could offer you a lot more value due to its high earnings on takeout and groceries at U.S. supermarkets.

Related: No travel, no problem: 6 Amex Platinum benefits you can use from home

Ask for a retention offer

As the saying goes, "it never hurts to ask" — and that's especially true when it comes to credit card issuers. No business wants to see its customers leave, which is why issuers will often offer some sort of retention offer in points or cash to keep you. It's not guaranteed, but it's most definitely worth a shot.

Related: Your ultimate guide to credit card retention offers

Featured photo by Isabelle Raphael / The Points Guy.

For rates and fees of the Amex Platinum card, click here.