I have one payment left on a high interest credit card and then it'll be payed off. I also pay a $50 annual fee with or without money owed (got the card when I was younger with no credit to my name). I know that paying it off and not closing it will up my credit score, but do you think it's really worth 10-20 points when I still have to pay the annual fee when I'm not even using the card?
2006-12-14 15:15:49 · 10 answers · asked by Sunshine Swirl 5 in Business & Finance ➔ Credit
My credit is already pretty good and I have only a few good standing credit cards, so I am not worried about fluctuating too much, just want to know if this one card is worth the extra money I'm spending when I'm not using their service any longer!
2006-12-14 15:38:18 · update #1
you should NOT be paying an annual fee to ANY card company if you have good credit. simply call them and ask them to remove it. if the initial person you talt to says no...ask for a supervisor. I would be surprised if they dont take it off. If you have had this card for a long time...it will do wonders for your credit score in the long run. keep it...but only without the annual fee. Those annual fees are for people with BAD credit or not established credit. (young people) You can even tell them on the phone that you are thinking of closing it for this reason. They dont want to loose you as a good customer. (You can even say that you are thinking of making BIG holiday purchases on this card....I just did this to lower my interest rates....It's not completely true, but it could be) And...it WORKED!
2006-12-14 17:05:45 · answer #1 · answered by Deanna 2 · 0⤊ 0⤋
You say you got the cc when you were younger. How long has it been open and how long had your other cc's or loans been open? Your credit history accounts for 15% of your FICO score. If you cannot get the annual fee waived and are not too worried about your score dropping 10-20 points, then go ahead and close it. Just a note, 10-20 points can mean a lot if you are applying for any loans or a mortgage. That may mean you will end up paying more in interest on those type of loans than you would have with the $50 annual fee.
2006-12-15 04:33:33 · answer #2 · answered by Anonymous · 0⤊ 0⤋
I'd call the credit card company and see if they'd be willing to change you to a no annual fee plan. They most likely offer different types of cards and they'd probably rather keep you as a customer and let you switch to a different card than lose you. If you can't then cancel the card. You have other cards, don't you? It probably would have been a better idea to get a secured credit card rather than one with an annual fee when you had no credit but you can't turn back time. You'll lose all the history from that card, but if you got another one a year later or so, it wouldn't be worth the $50 annual fee.
2006-12-14 15:21:43 · answer #3 · answered by Geoff S 6 · 2⤊ 0⤋
If you have as good a credit score as you say....there will be plenty of OTHER cards that are no-fee that would love to have your business.
Unless you are getting some other incentive like airline miles or other discounts....I'd dump the $50 card. Why pay it when there are so many others willing to give you a free card? Especially if you don't use it.
The one disadvantage to getting rid of the card is that it is an older card and the longer you have credit the better it is for you. However, that payment history, even if the card is closed, will help you.
2006-12-14 17:27:15 · answer #4 · answered by markmywordz 5 · 0⤊ 0⤋
If your credit is already good enough to have another credit card, get rid of this one and get one with no anual fee and low interest, buy something every month with it and every time the bill comes, pay in full. Use it for gasoline, groceries, everything you want, as long as you know you will pay in full when the bill comes, so this can be dangerous because it can be easy to think you have more money than you have, but if you are really serious about preserving your credit healthy, do this. That will get your score high.
People with good credit, don't need credit cards with any interest or fees attached.
2006-12-14 15:23:42 · answer #5 · answered by ed_buchmann 2 · 1⤊ 0⤋
You should never pay an annual fee for a CC. I would either ask them to remove the fee or change to another card with better benefits. If they won't, switch to a card with no fee and close this one. Make sure your balances are the same.
2006-12-14 16:06:39 · answer #6 · answered by Joe S 6 · 0⤊ 0⤋
Keep the card, it's worth it for your credit record. Find a way to pay for it without using your current money. So find new money!
2006-12-14 15:27:39 · answer #7 · answered by Anonymous · 0⤊ 0⤋
ask them to reduce the interest rate or tell them you will close the card. they will usually drop the percentage some... i say don't close it and keep it open... it's 50 bucks a year... that's not horrible...
2006-12-14 15:19:31 · answer #8 · answered by heartbreaker6713 3 · 0⤊ 0⤋
do no longer do it. placing out and shutting bills surely lowers your credit. shelter in simple terms some bills, and shelter them nicely, shop them for long classes, ideally with low balances which you repay each and each month.
2016-10-14 23:39:56 · answer #9 · answered by fanelle 4 · 0⤊ 0⤋
cancell card
2006-12-14 15:18:11 · answer #10 · answered by hooya 3 · 1⤊ 1⤋