CC Fees on those who PIF each month?

**disneysteve** · 10-20-2009, 05:21 PM

I think annual fees are going to make a big comeback all around. My Marriott Rewards card has always had an annual fee but the rewards way more than make up for it so I've never cared.

**TheColonel** · 10-20-2009, 05:32 PM

Originally posted by disneysteve View Post

I think annual fees are going to make a big comeback all around. My Marriott Rewards card has always had an annual fee but the rewards way more than make up for it so I've never cared.

I feel the same way about my Starwood American Express.

**Seeker** · 10-20-2009, 05:45 PM

Yeah, I suppose so, but my concern is that these annual fee rates may sneak up on those of us who have several different cards that we do not normally really use.

I know that technically they are supposed to mail us and inform us of any policy changes, but while recently I've been checking closely any mailings from credit card companies, I'm not sure that I catch everything they are changing in their new "policy statement" -- in other words, they just sort of mix in the new stuff with the old, so I'm never really sure what exactly has changed.

I don't know.... maybe I should just cancel all the CCs we don't use. Or just keep one for MC, one for Visa, and one for Discover?

The only real rewards we use is cashback and Discover is our major usage card, but not everyone accepts Discover.

I guess we all really need to be watching and keeping up with these trends.

**disneysteve** · 10-20-2009, 05:49 PM

Originally posted by Seeker View Post

Yeah, I suppose so, but my concern is that these annual fee rates may sneak up on those of us who have several different cards that we do not normally really use.

That's a reasonable concern, but if you have a card that you don't use, you won't miss a new annual fee because you'll get a bill. That's how I caught a fraudulent charge on one card a while back. I got a bill on a card I hadn't used in ages.

**Like2Plan** · 10-21-2009, 07:33 AM

I think this is a good time to evaluate the merits of each CC to see if it is worth keeping.

**Snodog** · 10-21-2009, 07:54 AM

I will pay a small annual fee to use my credit card if I have to. The benifits I get are worth a reasonable fee.

That being said I hope my credit card company isn't reading this.

**disneysteve** · 10-21-2009, 08:00 AM

Originally posted by Snodog View Post

I will pay a small annual fee to use my credit card if I have to. The benifits I get are worth a reasonable fee. That being said I hope my credit card company isn't reading this.

Annual fees were commonplace for years. It is really only the past 10 years or so that no-fee cards became the norm. The pendulum is just swinging back the other way.

**MonkeyMama** · 10-21-2009, 08:04 AM

I'm with Snodog.

Can we chalk this up to one more reason not to keep every card you have ever had, for your credit score??? The financial gurus act like I have the plague when I mention that I always close an old card when I open a new one. What do I know - my FICO is 800-ish. (I've seen people with 10-20 open cards, in fear of the FICO).

I opened a credit union card this year in the hopes of avoiding future fees. They will at least be less likely to add a fee. Though I am quite sure my first CU Visa had an annual fee. I'm young, but I remember the times before the abundance of 0% and no annual fees. I got my first Visa about 16 years ago.

**disneysteve** · 10-21-2009, 08:07 AM

Originally posted by MonkeyMama View Post

I'm with Snodog.

Can we chalk this up to one more reason not to keep every card you have ever had, for your credit score???

I think everyone here routinely advises people to cancel CCs with annual fees, so I don't think this will change that advice, just enforce it. There is no reason to pay a fee for a card that you aren't even using, no matter what it does to your credit score.

**MonkeyMama** · 10-21-2009, 08:19 AM

Yes, but if you have 10 cards and you have to close 8 next year because of fees, that is NOT good for your FICO.

It makes far more sense to close cards you aren't using in the first place.

**feh** · 10-21-2009, 08:28 AM

We have a single CC (Visa) which we pay off each month. There is no annual fee. They make quite a bit from transaction fees, as we use our card a lot.

If they were to start charging an annual fee, I would likely start looking for another card.

**southerndoc** · 10-21-2009, 11:35 AM

I primarily use my Schwab Invest First Visa because I get 2% cash back on all transactions, no FOREX fees, etc. I pay it in full every month. The card is issued by FIA, which is the same company Bank of America uses. (Actually I think FIA might be a subsidiary of BoA?)

I opened an investment account with Schwab when I opened the card. Their customer service was so well that I ended up moving all my investment, retirement, checking, and savings accounts to them.

Let me make this clear: If FIA starts charging an annual fee -- even if it's $10/year -- I will not only cancel the card, but will move all my account elsewhere.

I'm quite sure I'm not the only one who feels this way. Banks had better tread lightly with the fees. They already make money off each transaction. Don't be greedy or you'll lose customers, or who knows, many customers may go back to cash transactions (which retailers would love).

**Joan.of.the.Arch** · 10-21-2009, 11:52 AM

I'll have to wait and see what I will do. At this point in my life I don't often have need for credit or a good FICO score. I'll evaluate as any changes come along. I rarely even used a CC until they started offering cash rewards. I can go back to paying cash. No biggie.

**disneysteve** · 10-21-2009, 12:29 PM

I don't mind the $65 fee on my Marriott card at all. Every year on my account anniversary, they give me a free night certificate. That's worth up to about $300, so that $65 fee is a great deal in my mind.

CC Fees on those who PIF each month?