Reply
Valued Member
wwtthhpp
Posts: 57
Registered: ‎02-12-2009
0

Re: Getting Rid of Credit Cards With Annual Fees

[ Edited ]

erutio wrote:

what are your cards that you have that have the AFs?  if you list them, then maybe we can tell you which banks are amenable to changing your card or waiving the AF.


Here are the 5 credit cards:

 

Merrick Bank:  2500 limit

 

Credit One Bank:  2500 limit

 

First Savings Credit Card:  1000 limit

 

Orchard Bank:  1000 limit

 

Best Buy RewardZone:  1000 limit

 

There is no balance on any of them but I used them for small purchases every month (ex. Redbox rentals, Netflix subscription, etc.)

 

I applied for a Citi Thank You Preferred after receiving the mailing today and was approved for a $3500 limit which would match those bottom three cards and add $500 worth of credit to my name.

 

Any suggestions?

Blogger
HiLine
Posts: 3,158
Registered: ‎10-19-2012
0

Re: Getting Rid of Credit Cards With Annual Fees

I would close all of those except the BestBuy, which might have some use in the future. The other cards are from subprimer lenders and will need to be eliminated at one point or another in the future.

Valued Member
wwtthhpp
Posts: 57
Registered: ‎02-12-2009
0

Re: Getting Rid of Credit Cards With Annual Fees


HiLine wrote:

I would close all of those except the BestBuy, which might have some use in the future. The other cards are from subprimer lenders and will need to be eliminated at one point or another in the future.


All at once or gradually as suggested in the first reply.  The Citi Thank You Preferred card take care of about half of the total CLI for those 5 cards so I am thinking come May/June, apply for another and have them all closed by that time, even the Best Buy card.

 

Yay, nay?

Valued Contributor
daybreakgonesXe
Posts: 1,864
Registered: ‎11-17-2012
0

Re: Getting Rid of Credit Cards With Annual Fees

[ Edited ]

I think the best way to do it is close out one card every 6 months to avoid negative impact in your credit scores. If you're really in a rush then do every 3 months. Closing some of these accounts will greatly affect your AAoA, not to mention if you ever want to apply for anything right after closing a whole bunch of accounts at one time it's looked upon negatively. Rank the cards with AF based on CL, rewards, etc. (so far looks like they're a whole lot of subprime) and start knocking those babies out one at a time. Slow and steady wins the race :smileyhappy:

 

[Edit]: Also, I would apply for your prime cards BEFORE closing out the subprime ones, just for AAoA and good payment history purposes!

Capital One Quicksilver World Mastercard $10k | JCPenney Platinum $7.5k | Shell Drive for Five $800 | Chase Freedom Visa Signature $9.8k | TD Bank Easy Rewards Visa Signature $5k | Chase Sapphire Visa Signature $10k | American Express Blue Sky $25k | Discover IT $9.5k | SavingStar American Express $14.8k

FICOS: EX 744 EQ 718 TU 733 Credit Karma (TU) 785 Transrisk 809/990 Credit Sesame (EX) 766 Credit.com (EX) 764 VantageScore 3.0 719 Quizzle (EQ) 721
Blogger
HiLine
Posts: 3,158
Registered: ‎10-19-2012
0

Re: Getting Rid of Credit Cards With Annual Fees

[ Edited ]

wwtthhpp wrote:

HiLine wrote:

I would close all of those except the BestBuy, which might have some use in the future. The other cards are from subprimer lenders and will need to be eliminated at one point or another in the future.


All at once or gradually as suggested in the first reply.  The Citi Thank You Preferred card take care of about half of the total CLI for those 5 cards so I am thinking come May/June, apply for another and have them all closed by that time, even the Best Buy card.

 

Yay, nay?


Closing all accounts at once may raise a red flag if you'll be applying for other cards soon; closing them gradually as aforementioned would be more advisable. I think one every couple of months would be fine, especially if you'll be slowly obtaining prime cards as well. You can even try to get a few more prime cards some time in the next 1-2 months (apply all at once to increase your chance!), and once you get them, get rid of all the subprime cards as soon as possible. The rule of thumb is to obtain new cards before you get rid of old ones. 

 

Closing cards will not affect your credit history length or average age of accounts for another 10 years. 

Valued Contributor
Dustink
Posts: 3,097
Registered: ‎10-02-2012
0

Re: Getting Rid of Credit Cards With Annual Fees

Apply for a card or two that you like. If you get the card you want. Then close all your other accounts. No need to wait as your AAoA will not be effected by closing them, and you don't have any utilization issues.

 

Just make sure you get the cards you want before you close anything.

\
Too many INQs & low AAoA so I'm off to tend the Garden.     Age:23    


     $17k       $8.5K          Closed          $19k      $6.5k        $24.2k        Closed         $5k       Closed     $8.5k        Closed      @2.49%
Valued Member
wwtthhpp
Posts: 57
Registered: ‎02-12-2009
0

Re: Getting Rid of Credit Cards With Annual Fees

[ Edited ]

Before I started this thread I read the Closing Credit Cards stickied thread.  That thread specifically states that AAoA won't be affected by closing CC accounts which to me signals that I can close them all at the same time without any negative effects but I'm seeing several replies here that advise against that.  Am I reading that thread right or is there something I am missing?

 

I mean I can understand why I would want to space out opening new accounts due to the inquiries but the closing accounts still has me a little baffled due to what I've read and the replies I have received here.

 

I would like to thank you all for your help though, I appreciate the response. :smileyhappy:

 

Also, what cards or accounts would you advise applying for next?  Besides the cards listed above, here are other accounts that I have as well:

 

Walmart Discover: 2000

Amazon Store Card:  5500

Dell Financial:  3500

Gettington:  2000

Macy's:  2000

Home Depot:  5000

Citi Thank You Preferred:  3500

 

I have about $200 total balance on all the cards combined.  I'd like to get 2 more eventually, a MasterCard and AMEX preferred.  Any suggestions on that front?

Senior Contributor
Walt_K
Posts: 3,065
Registered: ‎11-02-2009
0

Re: Getting Rid of Credit Cards With Annual Fees


wwtthhpp wrote:

Before I started this thread I read the Closing Credit Cards stickied thread.  That thread specifically states that AAoA won't be affected by closing CC accounts which to me signals that I can close them all at the same time without any negative effects but I'm seeing several replies here that advise against that.  Am I reading that thread right or is there something I am missing?

 

I mean I can understand why I would want to space out opening new accounts due to the inquiries but the closing accounts still has me a little baffled due to what I've read and the replies I have received here.

 

I would like to thank you all for your help though, I appreciate the response. :smileyhappy:

 

Also, what cards or accounts would you advise applying for next?  Besides the cards listed above, here are other accounts that I have as well:

 

Walmart Discover: 2000

Amazon Store Card:  5500

Dell Financial:  3500

Gettington:  2000

Macy's:  2000

Home Depot:  5000

Citi Thank You Preferred:  3500

 

I have about $200 total balance on all the cards combined.  I'd like to get 2 more eventually, a MasterCard and AMEX preferred.  Any suggestions on that front?


The closing credit card threads is mainly focused on the effect to your FICO score.  As is said around here (sometimes not often enough), score isn't everything.  So, while closing cards has no immediate effect on your AAoA, and only affects your score to the extent it affects your utilization, it is easier to get new credit if you show you have established credit.  I'm guessing people warning you against closing everything at once were concerned you might leave yourself with little to no other credit available, and then you would make it more difficult for yourself to get approved for other cards.  However, since you have several other established lines, I wouldn't worry about closing a bunch of cards at once.

 

And yes, you can call all your CCs and ask them to waive AFs, change products, etc., but there's a balance to this.  The cards that you are looking at closing look to be all cards from credit building/rebuilding days.  You're just going to have to make those calls again next year to see if they'll waive fees again.  If you don't care to go through that, then close them.  That's what I would do. 


Starting Score: ~500 (12/01/2008)
Current Score: EQ 681 (04/05/13); TU 98 728 (01/06/12), TU 08? 760 (provided by Barclay 1/2/14), TU 04 728 (lender pull 01/12/12); EX 742 (lender pull 01/12/12)
Goal Score: 720


Take the FICO Fitness Challenge
Blogger
HiLine
Posts: 3,158
Registered: ‎10-19-2012
0

Re: Getting Rid of Credit Cards With Annual Fees


wwtthhpp wrote:

Before I started this thread I read the Closing Credit Cards stickied thread.  That thread specifically states that AAoA won't be affected by closing CC accounts which to me signals that I can close them all at the same time without any negative effects but I'm seeing several replies here that advise against that.  Am I reading that thread right or is there something I am missing?

 

I mean I can understand why I would want to space out opening new accounts due to the inquiries but the closing accounts still has me a little baffled due to what I've read and the replies I have received here.

 

I would like to thank you all for your help though, I appreciate the response. :smileyhappy:

 

Also, what cards or accounts would you advise applying for next?  Besides the cards listed above, here are other accounts that I have as well:

 

Walmart Discover: 2000

Amazon Store Card:  5500

Dell Financial:  3500

Gettington:  2000

Macy's:  2000

Home Depot:  5000

Citi Thank You Preferred:  3500

 

I have about $200 total balance on all the cards combined.  I'd like to get 2 more eventually, a MasterCard and AMEX preferred.  Any suggestions on that front?


Closing many accounts at once may imply financial troubles or credit card abuse. Either way, some creditors may view that as suspicious behavior. However, since you already have so many prime or near-prime cards, I don't think closing the crappy cards will raise a red flag, since it's natural that you'd want to consolidate credit if you have more than 10 cards. (Hey you should've told us about the other cards up front! It's a game changer! :smileywink: )

 

Not sure what you mean by Amex Preferred. But if you want any Amex, an easier one would be Delta Gold Skymiles. As for Mastercard, you can take a look at some other Citi-issued cards.

 

Valued Member
wwtthhpp
Posts: 57
Registered: ‎02-12-2009
0

Re: Getting Rid of Credit Cards With Annual Fees

Great. Sorry I didn't include all of my account info previously. Seems like I should have no problems closing them then based on the other accounts I have.

I meant that I prefer to apply for AMEX or MasterCard next as I have prime Visa and Discover and there are stores that accept one or the other. Any AMEX OR MC cards any of you would suggest. I just applied for the Citi Thank You Preferred and got approved, should I hold off on further apps?

myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
FICO Score - The Score that matters
Click to Verify - This site chose VeriSign SSL for secure e-commerce and confidential communications.
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+
}