Credit card I've had for a while is now going to have an annual fee. Cancel?

[leighangela]

I think I opened this card for a balance transfer last year, but I paid the balance off and forgot about the card.

Today I get a letter saying they are going to add a $49 annual fee to the account. If I refuse, the account will be canceled. Obviously I don't want to pay $49 for something I am never going to use. How much will it hurt me to cancel? I probably have 5 other credit cards, only one has a balance on it and that will be paid off in 2 months.

[disneysteve]

This is one of those times when worrying about your credit score makes no sense. Cancel the card. Yes, your score will dip a little, but that is temporary and it will recover.

The only time you should pay an annual fee is if the card gives you something in return that is worth at least as much as the fee being charged.

[leighangela]

Sweet. Canceled!!!