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I have a Marriott Visa credit card, but no longer use it and don't want to pay the $30 annual fee. But I don't want to cancel it either, as it will lower my credit score. They said I can switch it to a card that doesn't have an annual fee. Will that effect my credit score the same as if I cancel it? Or if I just switch to another card, will it not effect my score at all? Thanks!

2007-09-28 02:58:04 · 5 answers · asked by Boss Hog 1 in Business & Finance Credit

5 answers

As an accountant and mortgage broker I will tell you that as long as you wont' buy a home, a car, or are anticipating getting a large loan within the next year....close that account. Sure it will hurt your credit score AND I WILL TELL YOU WHY.

Working closely with credit reporting agencies I've discovered that when you close a credit card account all payment histories on that account get thrown out of equation that determines your FICO. However, any negative information regarding that account you closed such as late payments or collections sticks with you for the next 7 years. Funny how the FICOs only look for negative info on consumers versus positive information....and it does this because ultimately FICOs are suppose to look at consumer risk---and to access that you need to look closely at the negative info alot. It's sad but a truth nonetheless.

Close the account because you really shouldn't pay $30.00 but if $30.00 doesn't affect you keep it only if you see your self buying a home, refinancing your mortgage, or car loan etc within a year of closing it.

2007-10-01 06:32:32 · answer #1 · answered by christiansareawesome 4 · 0 0

I am clueless are you doing something wrong. I have never paid a fee for a CC, checking, savings and quite frankly would not. As far as I know all tier one CC issuers do not charge fees. Citi , unlike most does make offerings of 3rd tier cards perhaps you have one of those?

2016-05-20 22:54:05 · answer #2 · answered by ? 3 · 0 0

It depends on your history with the old card. If you have an excellent track record with the old card, it may be best to keep it open. But the answer depends on many factors that will vary from one situation to another.

http://www.e-wisdom.com/credit-cards/apply-for-a-credit-card.html#credit-cards-keep-or-cancel

2007-09-30 12:39:28 · answer #3 · answered by tw158 3 · 0 0

Dont cancel it then but dont use it either. take one with no annual fee. no one should pay that. then when you have used the new one for a while you can cancel the old one.

2007-09-28 03:01:52 · answer #4 · answered by Aloha_Ann 7 · 0 0

If you are not going to buy a house or anything major in the near one year, I would say close - to avoid fraud and keep one that is your favorite active all the time.

2007-09-28 03:02:31 · answer #5 · answered by yahoooo! 5 · 0 0

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