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Getting card with monthly fee to report 0 balance?

Established Contributor

Getting card with monthly fee to report 0 balance?

I have a card that is one of my oldest that has a monthly service fee, so it always reports a balance. I'm trying to figure out a way to get them to report a zero balance.

They don't allow you to pay more than the balance due. I was thinking I would make a purchase, pay it off and then return the item so I have a credit balance.

Not sure that this will work, anyone tried that with a card that has a monthly fee?

10 REPLIES
Super Contributor

Re: Getting card with monthly fee to report 0 balance?

Pay your balance and then push the amount of fee thru online banking 

Before you app think...
Have you done your research of the CC?
Does it fit your spending?
Do you have a plan for the bonus w/o going into debt?
Can you afford the AF?
Do you know the cards benefits? Is it worth the HP?
Senior Contributor

Re: Getting card with monthly fee to report 0 balance?


myjourney wrote:

Pay your balance and then push the amount of fee thru online banking 


+1

 

Since you already know what the monthly fee is, simply push that payment through your bank before it is billed (like myjourney mentioned) and that will leave a credit balance until the fee hits the account, thereby leaving a 0 balance to report.  Rinse & repeat monthly.

Moderator

Re: Getting card with monthly fee to report 0 balance?


IWOL wrote:
I have a card that is one of my oldest that has a monthly service fee, so it always reports a balance. I'm trying to figure out a way to get them to report a zero balance.

They don't allow you to pay more than the balance due. I was thinking I would make a purchase, pay it off and then return the item so I have a credit balance.

Not sure that this will work, anyone tried that with a card that has a monthly fee?

Ok.  Let's stop at the red words.  I might be overanalyzing this, but are you keeping this CC open simply because it's an old TL?  If this card no longer has any other purpose anymore aside from propping up your AAoA and it's now merely a hassle and an added expense, you should consider closing it.   AAoA includes closed accounts, despite FAKO models suggesting otherwise.  And a positive closed account will report for 10 years.

 

You should read the "Closing Cards" sticky thread.  This TL sounds like it's more of a burden than a benefit.  



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Established Contributor

Re: Getting card with monthly fee to report 0 balance?

Sunrise posted what I was thinking... If the fees is warranted for another reason just push with online bill pay.

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Regular Contributor

Re: Getting card with monthly fee to report 0 balance?

Or you could just mail them a check 10 days before your due date for the full balance owed plus the amount of the monthly fee. That will give you a credit balance until the fee hits on the new statement cycle. Hopefully the overpayment is the same as the monthly fee, thereby zeroing your account out. If you overpay a little, that's okay as a negative balance reports to the bureaus as ZERO.


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Established Contributor

Re: Getting card with monthly fee to report 0 balance?

Thanks for all the excellent suggestions. I'll try the bill pay through my bank.

I realize that the account will still report for 10 years if I close it but I just closed 3 secured cards that were also some of my oldest accounts and I just felt like I should keep atleast one if my oldest lines open even if I don't use it. Maybe I'll just close it.

What about under manual revue.....isint it better to have a lender see atleast one open account that has a long history attached to it.


Moderator

Re: Getting card with monthly fee to report 0 balance?


IWOL wrote:
Thanks for all the excellent suggestions. I'll try the bill pay through my bank.

I realize that the account will still report for 10 years if I close it but I just closed 3 secured cards that were also some of my oldest accounts and I just felt like I should keep atleast one if my oldest lines open even if I don't use it. Maybe I'll just close it.

What about under manual revue.....isint it better to have a lender see atleast one open account that has a long history attached to it.


They could also see it as you having an active, subprime account.  I think at some point, lenders expect that you'll outgrow some of your TLs and replace them with TLs with better terms.  



Start: 619 (TU08, 9/2013) | Current: 791 (TU08, 10/26/17)
Sam's Club MC $25000 | Marvel MC $25000 | Macy's AMEX $25000 | AMEX BCE $20400 | Macy's Store $20000 | Discover IT $18000 | Cap 1 QS WMC $17250 | BoA BBR #1 $17200 | JCP $15000 | Citi DC $12600 | Freedom VS $12000 | BofA BBR #2 $11800 | Disney VS $11500 | Care Credit MC $11200 | Cash+ VS $10500 | CashForward WMC $10000 | Barclay Rewards WMC $10000 | WCU Visa $10000 | Amazon Store $8000 | Blispay $7500 | Sony Card $4250 | Target MC $4000 | Costco Anywhere $3200 | ~~Gardening Since 11/2/17
Moderator

Re: Getting card with monthly fee to report 0 balance?


IWOL wrote:
Thanks for all the excellent suggestions. I'll try the bill pay through my bank.

I realize that the account will still report for 10 years if I close it but I just closed 3 secured cards that were also some of my oldest accounts and I just felt like I should keep atleast one if my oldest lines open even if I don't use it. Maybe I'll just close it.

What about under manual revue.....isint it better to have a lender see atleast one open account that has a long history attached to it.


Have to ask, the majority of common secured cards are better than any card I'm aware of that has a monthly fee associated with it: why keep this one over the others... or at all?  Some tradelines are meant to be whacked upon doing better, and monthly fee cards fall into that category typically.

 

I have to agree with the others: kick it to the curb.

Starting Score: EQ 5 561, TU 98 567, EX 2 599 (12/30/11)
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Valued Contributor

Re: Getting card with monthly fee to report 0 balance?


SunriseEarth wrote:

IWOL wrote:
Thanks for all the excellent suggestions. I'll try the bill pay through my bank.

I realize that the account will still report for 10 years if I close it but I just closed 3 secured cards that were also some of my oldest accounts and I just felt like I should keep atleast one if my oldest lines open even if I don't use it. Maybe I'll just close it.

What about under manual revue.....isint it better to have a lender see atleast one open account that has a long history attached to it.


They could also see it as you having an active, subprime account.  I think at some point, lenders expect that you'll outgrow some of your TLs and replace them with TLs with better terms.  


+1

 

if you want to pay a fee, at least make it a valuable addition to your credit portfolio, AP for a AMEX PRG if you have a 650+ fico and 6 months of credit history you should be approved, no annual fee for a year, then you can PC it to green or senior green get approved by end of year to lock in your member year as 2013. 

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