What do you do 6 months to a year later with the annual fee high interest rate cards?

Question

All i can get now are the 19.5-23.9% rate and $6-$10 a month cards. Some day(6-12 months) I will get the low interest rates and no annual fee cards so what will i do with the others? They will have 6 months or more credit history on them? I don't want to keep on paying the annual fees? If i get rid of them my score will go down! I called one of the card company and she said the annual fee will always be on the card as long as you have it. If i keep them too long too much money going out...Please give me some advise you experts I have 2 cards 3 months now.

Answer 1

In the grand scheme of things, that 6 month history being lost when you close those accounts won't really ding you credit very much. That monthly fee is just way too expensive to keep any longer than you have to.

Answer 2

Get rid of the cards with annual fee, it's not worth it. Instead get a regular card if you can or simply use Checking cards with mastercard logos to avoid the fees.

I have included the Credit Card 101 article below which has more details.

Answer 3

Get a regular card as soon as you can then cancel the others. The interest rate doesn't matter since you would pay them before the grace period is over. This is simply a test of your self control if you can't avoid running up high rate cards you aren't ready for low rates.

Answer 4

Why don't you quit the credit cards and pay off your debt. Credit cards will not get you anything you haven't earnt in the long run, but will cost you large amounts of money. Pay off your debt, then start saving money and actually wait till you can afford what you want.

Answer 5

Do what I have done in the past, simply ask them to waive the fee. They may want you to use the card a couple of times (always pay the balance off each month). If they don't, tell them you won't use it.

Answer 6

You don't get rid of the cards that you use. You just stop using the cards, which keeps the account open.