I'm trying to increase my credit score as much as I can this year because we are looking to buy a house next year.
On one of my credit cards ($500 limit) I noticed that they started charging $6 a month participation fee. I called and found out that's the fee for them to report to all three credit report bureaus.
This card has a pretty long history on it and I'm worried that cancelling it might affect my score, but at the same time, I'm paying $6 a month. Is it worth cancelling this card to avoid that charge?
2007-01-30 03:06:22 · 2 answers · asked by j4de80 2 in Business & Finance ➔ Credit
Good question. I wouldn't be too psyched if my CC started charging me that fee. :-(
It is your personal decision. You said that you have a long history with the card. For that reason alone I would keep it open - especially if the history is a good one. Closing the account could also drastically modify your debt ratio. (and it could also pull your score down a little).
I guess it just depends if you would rather pay the $6 or close it and effect your credit.
Good luck!
2007-01-30 06:32:55 · answer #1 · answered by YSIC 7 · 0⤊ 0⤋
Don't close it. Call them and threaten to close it if they don't take off the charge, but DO NOT close it. If you threaten to close the account, they will do whatever it takes to get you to stay. Stick to your guns and you can probably get it taken off without closing the account. Tell them you have a better offer. Lying is not always a bad thing.
2007-01-30 14:49:52 · answer #2 · answered by Poison Ivy 3 · 0⤊ 0⤋