Annual Fee or Lower Score?

[Anonymous]

Hello.

I have a CC that I haven't used in a few years. It has a zero dollar balance and I've always paid it on time and in full back in the days when I did use it. Recently a new bank took over and they charge an annual fee of $60, which is due next month. So the question is: Do I pay the annual fee of $60 for a CC I never use - or do I deal with a loss in credit score points?

Thanks for your input.

[_andClimbing]

Have you tried calling the new bank and asking them to waive the annual fee? If you imply that you might consider using the card again, they may be more agreeable. I would try it before closing the account.

[FretlessMayhem]

You don't really lose points from closing a CC unless it either significantly effects your utilization or you only have a 1 or 2 revolving accounts. Do either of these apply to you?

I recommend calling the CCC and asking them to waive the AF based your long history with the CCC. If they refuse after several attempts with different CSRs you might want to close it, but before you choose to do so you might want to consider the instances above regarding effecting your score.

Welcome to the forums!

[SCF]

Depending on the company, you may also want to do some research and see if you can request a product change to a card with no AF, normally the CCC will transfer your payment history and age to the "new" account.