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fkj
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fkj
Posts: 4
Registered: ‎07-20-2009
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Secured Card Problem. Oldest Card but high fees. Want to cancel, but how?

How do I rid myself of this problem? I got a secured card to help build my credit a few years back. I've since built ny credit to good standing and have been maintaining all accounts. This card carries a low line and high fees. It has a $0 balance now, but I pay monthly and yearly fees to have it. It cost money to even request a line increase.

 

Is there any way to cancel this card without suffering a huge dent in my score?

 

Thanks.

Established Contributor
pattycake
Posts: 760
Registered: ‎04-30-2007
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Re: Secured Card Problem. Oldest Card but high fees. Want to cancel, but how?

What are your current scores, and what is the CL on this card?  Sometimes it's worth the hit if the card is too expensive.  I closed my Credit One account because the CL was low and the fees were high. 
pattycake's FICOs: 6/2/10 - TU: 708; EX: ???; EQ: 749
Established Contributor
JoeBJay20
Posts: 795
Registered: ‎04-13-2009
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Re: Secured Card Problem. Oldest Card but high fees. Want to cancel, but how?

Welcome to the forums!

 

In a situation like this, it becomes prudent to choose the best financial decision and not necessarily the best credit decision.  That being said, it shouldn't cost you any or many points in the short term as long as your utilization remains the same.  It sounds like you've moved on to bigger and better cards, so there's no reason to keep a crummy card like this, even if it is your oldest CC.  

Senior Contributor
BungalowMo
Posts: 4,243
Registered: ‎05-01-2008
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Re: Secured Card Problem. Oldest Card but high fees. Want to cancel, but how?

How old is this card & what's the age on the next in line?

 

Like PattyCake mentioned about the Credit one...I have that too & it's my oldest.  I'll likely wait until my re-fi is finished, then close it.  I don't like the fees either, about $6/mo & after over 4 years, my limit is only $850 (& a 24% int rate).

 

I do have to admit, It was a great starter card when I couldn't get anything anywhere else. 



Starting Score: 07/2011 TU 732 - EQ 717 - EX 702
Current Score: 06/2014 TU 739 - EQ '08 709 - EX 721
Goal Score: 850

Bury me in the garden...last app 06.18.14

fkj
New Member
fkj
Posts: 4
Registered: ‎07-20-2009
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Re: Secured Card Problem. Oldest Card but high fees. Want to cancel, but how?

Thank you for your input.

 

My score is now in the low 700's. This card has a line of only $350. It's a First Premier Card. It will cost $25 to even request a line increase and if I'm approved that may only be for a $50 increase. I don't regret getting the card since it helped me get where I am now, but it seems dumb to keep it since I'm paying $6 a month to just have it, plus annual fees, and maintenance fees. I have other cards with much higher lines and lower or no fees. 

Established Contributor
pattycake
Posts: 760
Registered: ‎04-30-2007
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Re: Secured Card Problem. Oldest Card but high fees. Want to cancel, but how?

I would close it.  The CL isn't high, and the fees are not worth it.  Call and tell them you want to cancel the card, and be done with it.  You'll bounce back quickly, and card will report as a positive TL for ten years.  

 

Welcome to the forums, BTW!  You'll learn a lot of good stuff here.   

pattycake's FICOs: 6/2/10 - TU: 708; EX: ???; EQ: 749
Senior Contributor
BungalowMo
Posts: 4,243
Registered: ‎05-01-2008
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Re: Secured Card Problem. Oldest Card but high fees. Want to cancel, but how?


pattycake wrote:

I would close it.  The CL isn't high, and the fees are not worth it.  Call and tell them you want to cancel the card, and be done with it.  You'll bounce back quickly, and card will report as a positive TL for ten years.  

 

Welcome to the forums, BTW!  You'll learn a lot of good stuff here.   


I'll second that! "Fire 'Em!"  :smileyvery-happy:



Starting Score: 07/2011 TU 732 - EQ 717 - EX 702
Current Score: 06/2014 TU 739 - EQ '08 709 - EX 721
Goal Score: 850

Bury me in the garden...last app 06.18.14

fkj
New Member
fkj
Posts: 4
Registered: ‎07-20-2009
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Re: Secured Card Problem. Oldest Card but high fees. Want to cancel, but how?

Awesome! Thank you so much! I don't feel so conflicted anymore.
Senior Contributor
BungalowMo
Posts: 4,243
Registered: ‎05-01-2008
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Re: Secured Card Problem. Oldest Card but high fees. Want to cancel, but how?

One more thing...just remember...don't freak out when you score drops a bit from closing the oldest card.  It will rebound!


Starting Score: 07/2011 TU 732 - EQ 717 - EX 702
Current Score: 06/2014 TU 739 - EQ '08 709 - EX 721
Goal Score: 850

Bury me in the garden...last app 06.18.14

Moderator Emerita
Community Leader
Epic Contributor
haulingthescoreup
Posts: 28,098
Registered: ‎04-01-2007
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Re: Secured Card Problem. Oldest Card but high fees. Want to cancel, but how?


BungalowMo wrote:
One more thing...just remember...don't freak out when you score drops a bit from closing the oldest card.  It will rebound!

Shouldn't be any drop from closing it, unless util is affected. The history hangs on for 10 years (or until EQ decides to drop it, lol.)

I might have missed this on earlier posts, but OP, be sure to read fused's "Closing Credit Cards" linked in my siggy. There are some counter-intuitive things that happen when you close cards, and this thread is great for untangling your mind.

I think you'll be fine!
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007

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