@Anonymous wrote:I have been cleaning up (closing) my wallet with CC's that have annual fees. Back in 05 I filed bankruptcy and got one of those crappy card that charged $6 a month and well as a $47 annual fee. I closed that account as well as a capital one that also had a annual fee.
I did open a Discover it....and even tho I closed two CCs my line of credit has gone up by $2000.
I don't really use the cards all that much...and when I do, I pay them off.
I have one card left that has a annual fee and I was wondering if I should close that one as well.
It's hard to pay the fees when I don't really use them....
I'm not looking into applying for any kind of loan for at lest a year.
How would closing this other card affect my score?
Would it help if I opened another CC without a fee just to keep my available line of credit the same?
Thanks
Kendra
First Off Congrats! 2nd What is your Credit avaliable with all your Credit cards and would your utli % go up quite a lot if you close it ? If it would hurt your Utli% I would app for another Credit card that you would want and see if you get accepted before you close the one with the AF
@Anonymous wrote:I have been cleaning up (closing) my wallet with CC's that have annual fees. Back in 05 I filed bankruptcy and got one of those crappy card that charged $6 a month and well as a $47 annual fee. I closed that account as well as a capital one that also had a annual fee.
I did open a Discover it....and even tho I closed two CCs my line of credit has gone up by $2000.
I don't really use the cards all that much...and when I do, I pay them off.
I have one card left that has a annual fee and I was wondering if I should close that one as well.
It's hard to pay the fees when I don't really use them....
I'm not looking into applying for any kind of loan for at lest a year.
How would closing this other card affect my score?
Would it help if I opened another CC without a fee just to keep my available line of credit the same?
Thanks
Kendra
Kendra, you've done great in eliminating pesky fees. If that last card that has an annual fee won't budge on removing it, then axe it with the ferocity of 10,000 ants biting them. LOL Just kidding. Let me get you the link for the closing an account FAQ. It's quite helpful and will answer all of your questions.
http://ficoforums.myfico.com/t5/Credit-Cards/Closing-Credit-Cards/m-p/347190?jump=true
@longtimelurker wrote:
@Closingracer99 wrote:
@Anonymous wrote:I have been cleaning up (closing) my wallet with CC's that have annual fees. Back in 05 I filed bankruptcy and got one of those crappy card that charged $6 a month and well as a $47 annual fee. I closed that account as well as a capital one that also had a annual fee.
I did open a Discover it....and even tho I closed two CCs my line of credit has gone up by $2000.
I don't really use the cards all that much...and when I do, I pay them off.
I have one card left that has a annual fee and I was wondering if I should close that one as well.
It's hard to pay the fees when I don't really use them....
I'm not looking into applying for any kind of loan for at lest a year.
How would closing this other card affect my score?
Would it help if I opened another CC without a fee just to keep my available line of credit the same?
Thanks
Kendra
First Off Congrats! 2nd What is your Credit avaliable with all your Credit cards and would your utli % go up quite a lot if you close it ? If it would hurt your Utli% I would app for another Credit card that you would want and see if you get accepted before you close the one with the AF
Not sure why this makes sense! The only reason people worry about util is because it impacts score, but it can be handled on a month by month basis (i.e. it has no memory, so lowering it will make the score better that month). In contrast, applying for a new card is a certain INQ, which impacts score for a year, as well as a new account which reduces AAoA, again impacting score.
But unless you are applying for a loan, which you are not, score doesn't have a real value, whereas the annual fee you are paying is actual money. So if you don't need the card, I would close it.
I am not shopping for loans no apping for new cards at the moment myself but I still wouldn't want util % to post above 30% imo