I just got an additional credit card after working very hard to bring my credit score out of the toilet. I've had it less than a month, used it one time, and found out that for my $300.00 limit there is a $60.00 annual fee. I did not read the fine print, and I can afford to pay it, but I don't especially want to. I'm just afraid that if I cancel it so quick, that might look bad to other lenders, and bring my score down, even if there is no late payments/negative reporting.
2007-01-18 03:11:03 · 5 answers · asked by Andy Jones 2 in Business & Finance ➔ Credit
Being only a month and has a annual fee. I would cancel. But if your worried about your score, call the credit card company and ask for the annual fee to be eliminated. Due to all the other credit cards out there that dont have a fee, they may take the fee off due to competition. If they wont, cancel. Why pay a fee for a card you can get free elsewhere
2007-01-18 03:16:22 · answer #1 · answered by yournotalone 6 · 0⤊ 0⤋
How many credit cards do you have. Financial advisors say it's good to have 1 or 2, and keep just those. Having too many open accounts will bring your score down. Also having too many cards and then canceling them brings it down. So just stick to 1 or 2 cards for a couple years until your credit score goes up. Also you can talk with your credit card company and see if they'll reduce the annual fee once you've been with them for a while.
2007-01-18 03:16:38 · answer #2 · answered by ? 3 · 0⤊ 0⤋
Your hunch is somewhat substantiated. There are several factors involved in this question but I would probably support you in closing out the card. Paying an annual fee (especially of $60) sounds steep for your purposes. Definitely don't make a habit of opening and closing cards because it WILL show up negatively, whether or not you have any late payments, etc. As I one time thing it is worth the minor hit to save the $60/year. Good luck!
2007-01-18 03:19:41 · answer #3 · answered by CSUflyer 3 · 0⤊ 0⤋
You're right, it doesn't look good but it's not going to hurt you tremendously. If anything, hold on to it until about the one year mark and before they charge you the annual fee again, then cancel the card. That way you had it longer it it looks a bit better on your credit report. Good luck.
2007-01-18 03:15:46 · answer #4 · answered by mageta8 6 · 0⤊ 0⤋
No, it should not reflect negatively. However you MUST always read the brochure they send you with every card. This will tell you annual fee, APR, and other applicable fees. By law it cannot be "fine print", just make sure you are looking for it.
2007-01-18 03:14:59 · answer #5 · answered by fastcarceo25 3 · 0⤊ 0⤋