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I know older accounts look better on the credit report, and my oldest credit card account is a card with an annual fee. Now that my credit is better, I've gotten cards that have no annual fee, but I have'nt had them very long. Should I cancel the older account to avoid the fee or keep it open to help my credit score?

2006-07-07 01:05:11 · 19 answers · asked by cashmaker81 6 in Business & Finance Credit

I just called and they won't waive the fee or lower the interest rate

2006-07-07 01:20:50 · update #1

19 answers

First off I would ask that your card be upgraded to not having the annual fee. See if you can do anything about the interest rate too. If they recognize that your credit is better now and they will agree to help you out then keep them.

If they will not get rid of the fee I would wait until you have had the newer cards for at least a year and have had a chance to build your history with them. Then cancel it.

2006-07-07 04:44:59 · answer #1 · answered by Think.for.your.self 7 · 0 0

If you have several other line of credit and your score is very solid (mid700's or higher) just cancel it. It may be a hiccup on your credit report but in the grand scheme why pay for a card you do not use. A $30 annual fee is a $60 dollar swing. You had to pay 30 for a bill you don't need that means you have 30 less to pay another 30 bill you could have paid.

2006-07-07 08:50:09 · answer #2 · answered by unclejesse1 3 · 0 0

If they won't lower your interest rate to match a competitor, and they won't waive the annual fee, then cancel it!

If you are planning on making a major purchase soon, you may hold off just a little. Canceling the card will lower your credit score, but it should recover in a few months.

Before giving up...ask for a supervisor. Service reps are fairly brainless and don't have authority to make many decisions like this.

2006-07-07 04:51:15 · answer #3 · answered by Anonymous · 0 0

Cancel the card. The new account affect to your credit report only lasts about 3 to 6 months. If you aren't going to be applying for credit in that period of time, don't even worry about it. I learned this personally having bought a new car and getting a store charge card. I have been watching my credit score because I intend to buy a house in the near future. I watched the score dip and recover as I got the new accounts, but then time passed.

Also keep in mind that the number of cards and the respective available credit can negatively affect your credit more than a new account, as well as your balances and the highest amount you've ever charged on any of you cards. It's a delicate balance. It's great that think about it, though.

2006-07-07 04:01:45 · answer #4 · answered by misslabeled 7 · 0 0

Call the CC company and ask to be switched to a lower rate. Use the fact that you have had the card for a long time & that your credit score has improved, as reasons to qualify for the new rate. If they refuse - then cancel. But it does help to have those older accounts on the report even if you keep a zero balance.

2006-07-07 01:10:14 · answer #5 · answered by legacy 2 · 0 0

I would say cancel it, unless you're about to make a major purchase and think your credit history is about to be checked. Unfortunately, though, you never know what a company is going to object to regarding credit anyway.

For example, I was recently declined for, of all things, car insurance because my credit history was, on average, too "young," which is ridiculous because my credit is spotless. I had recently relocated and had opened some new accounts, which had driven down the average age of my accounts. I switched car insurance companies and everything is fine now.

Anyway, cancel the card and keep building your good credit from this point, and always try another provider if one objects to the age of your accounts.

2006-07-07 01:13:11 · answer #6 · answered by Cols 3 · 0 0

Credit card companies like to retain their customers, so this is what I suggest you do. Call your credit card company, and tell them that you are going to cancel your credit card with them, because you have found another company whom you have a card with that has no annual fee. See how fast they will offer to cancel your annual fee to retain you as a customer. Customers are what keeps the credit card people in business.

2006-07-07 01:11:33 · answer #7 · answered by WC 7 · 0 0

Cancel the older card. But make sure that there are no hidden charges in the new cards.

A few articles that might be of interest:

Building Wealth by Reducing Debt
http://www.askaquery.com/Answers/qn1578.html

How to Manage Your Credit Card Debt?
http://www.askaquery.com/Answers/qn1579.html

2006-07-13 23:51:37 · answer #8 · answered by Kate S 1 · 0 0

I would cancel it.. but anything you cancel you should remember that your debt ratio is key for your credit score.... if you have a huge balance against your available credit.. that's what lower's the scores.. Keeping an account open with nothing on it.. does help the credit score though because it shows that you have available credit.. but you don't neccessarily need it..

2006-07-07 03:36:42 · answer #9 · answered by Eshi 2 · 0 0

You could contact the credit card company and ask them if they'll give you a break on the fee? Some of them will do that knowing how keen the competition is. Can't hurt to ask. While you're at it, ask them about reducing your interest rate.

Good luck.

Barb

2006-07-07 01:09:35 · answer #10 · answered by Barbzzz37 4 · 0 0

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