Closing CC Accounts

[tudinh80]

I have 2 credit card that have annual fee of about 35 dollars on each of them.

I don't really like paying for annual fees. I was thinking of closing them. 1 CC is
less than a year when i first open it. The other one i have is my first one, and its more than 4 years now.

I know that i should have curtain amount of revolving credit and a long term credit card.

Should i close one or both of them? Is possible that i can talk to CC company and have them remove the annual fees?


Thanks for the reply.

[rooskers]

In the past I had a credit card that had a fee and I called and when they looked at my history they gladly moved me into one of their cards with no annual fee.

[kv968]

The longest term (and only) cc I hold charges a small monthly fee and although I've called them asking if they'd drop it, they've always refused. They've dropped my rate when asked but say they "have no promotions for the fee waiver at this time". Is it because they know it's by far the longest term card I hold and my credit score will suffer if I cancel it? I don't know but I have a feeling that may play a role. However it doesn't hurt to call them up and ask.

[disneysteve]

Since you have had both cards for a pretty short period of time, I think I'd just ditch them both once you had a new no-fee card in hand. Your credit score might take a little dip for a while, but it will recover.

Paying an annual fee really makes no sense unless you are getting something worthwhile in the deal. Some reward cards are well worth paying for because of the perks of the card, but it sounds like yours aren't like that.

[Vapors]

It will most likely hurt your credit if you cancel them. It sounds like you are young and may not have other credit history entries to offset them. If you plan to open any loans in the next few years (car, house), I would suck it up and pay the fees to keep them open. It's better to pay a small annual fee than a 2 or 3% higher interest rate on a car loan. I would still open a new no fee card and use it exclusively to build up credit so you can cancel the fee cards later.

You should look at your credit report (you can get 1 free if you don't have a recent one) and check the cards to see if they show your credit limit. If it does, keep the cards. If they don't, look to see how much you have had outstanding that you have paid off. If it's not much then you can probably just cancel the cards anyway. But if you have owed several thousand dollars and paid it off, keep the cards open until you have other good credit history, especially if you might take out a loan soon.

[tudinh80]

Great info guys. Thanks too all that reply.

I have 1 credit that has a limit 0f 2500. And i am starting to get offers No annual fee credit card. So, i am feeling pretty good that i am moving in the right direction. Feeling like slash and burn my annual fee.



I am wondering what is consider a long term card? How long it would it take for me recover, if i close my oldest account?

[Pupart]

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I know that i should have curtain amount of revolving credit and a long term credit card.

~~~~~~~~~~~~~~~~~~~~
Fico now has the expansion score .
I don't know a lot about it, but it seems it may be the answer for those who don't want to use credit cards.
Click the link for more info:


Frequently Asked Questions

[anonymous_saver]

Originally Posted by tudinh80

I have 2 credit card that have annual fee of about 35 dollars on each of them.

I don't really like paying for annual fees. I was thinking of closing them. 1 CC is
less than a year when i first open it. The other one i have is my first one, and its more than 4 years now.

I know that i should have curtain amount of revolving credit and a long term credit card.

Should i close one or both of them? Is possible that i can talk to CC company and have them remove the annual fees?


Thanks for the reply.

First, try calling your card you have had for 4 years and try to get the annual fee waived. Explain that you have had the card for 4 years and think that you shouldn't have to pay the annual fee any longer. You might have a good shot at this. I would also try this with your other card, although I think it would matter less.

Are you planning on taking a new loan out any time soon? If not, I would get a new card without an annual fee and cancel your other two cards. Yes, this would drop your FICO slightly, but it wouldn't matter if you aren't planning on getting a loan within the next year. If you are getting a loan, it would matter on what your FICO score is on whether I would recommend you getting rid of your fee cards.

Update us on whether or not they got rid of your feeds! I'm always interested in hearing about that.

[poundwise]

There is no way I will ever pay an annual fee on a credit card account again.

Based on what you've told us, even setting aside my own statement above, I would (a) close the youngest account, and then, (b) try to get that oldest card account to waive the fee permanently (be careful, they'll often do it for just one year), and if not, I would (c) obtain a new card with no annual fee and close both of current card accounts.

[disneysteve]

Originally Posted by poundwise

There is no way I will ever pay an annual fee on a credit card account again.

I think there are times when an annual fee makes sense.

I have a Marriott Premier Visa card. It has an annual fee of $65. However, every year on my account anniversary, I get a coupon good for one free nite at a category 1-5 Marriott. A category 1 hotel goes for about $69-79/nite. A category 5 can be up to about $300/nite. So no matter where I use that coupon, I at least break even on the annual fee and if I pick well, I can get a night at a luxury hotel for a fraction of the actual price. So that annual fee gets repaid to me every year in the form of that free hotel night.

[Ima saver]

Steve, that is smart to get a free night. I have never had a credit card with a fee, ever. I would take the no fee offers and get new cards.

[cheapdoggy]

You could call up the fee cc and with the no fee offer in hand explain that if it's not waived you will open the no fee one (with a different bank) and then close the fee one. That usually gets there attention.

[bigsaver]

Yeah, see if you can get the fee waived. Actually, the only reason I use credit cards for is the cash back. If you could get the annual fees waived, you could preserve your credit score until when you need to buy something like a house or car.

[Hez]

I would definitely cancel the cards if you can't manage to get the fees waived (unless, as others have said, you plan on opening a loan in the near future). There are SO MANY credit cards out there, it doesn't make sense to pay an annual fee unless it's offset by some great reward!

Also, if you're going to get a new card, watch out for any little "optional" fees that they may automatically sign you up for. For a couple years I paid for a balance protector fee even though I didn't need it at all. Whenever they call and ask if I want to sign up for it, they make it sound like some great benefit, saying things like "congratulations, you qualify for special coverage..." lol.