Should I cancel my first credit card?

[Anonymous]

I am fed up with Capital One. I called in today to waive my annual fee, they could not do it for me – their excuse was the economy. I don’t want to pay $49 a year for a card with average benefits and no rewards. I wanted them to switch me to another card but that would basically mean opening a new account and canceling this one. I would rather go to another credit card company.

The only reason for keeping this card is that it was the first one and my credit history is only 2 years old. But I have a good credit score; I have another 2-year-old good card without a fee, and a two-year-old personal loan that is almost paid off. I am thinking about buying a house maybe in a year or two but it is not for sure.

I am going to call Capital One and try to waive the fee again. But if this doesn’t work should I:

Cancel the card?

Should I get a good prime credit card before I cancel this one?

Or should I keep the cap1 card and keep paying the fee until I get a house?

What do you guys suggest? I don’t know how bad this is going to mess up my credit?

[Anonymous]

My vote keep the card. There is going to be a few here that disagree with me when it comes to a AF card.But i would want to squeeze every bit of history i could out of the acct. But now that i see your EQ score who knows.

[Anonymous]

Thanks cartercorp! I guess I will keep it until my first mortgage.

It a perfect way for Cap1 to make money - offer credit cards with fees to people with “no credit”. Cause they know we will keep paying fees for the sake of credit history.

[Creditaddict]

if you have another card that is the same age, then CANCEL.

if your score is much better now, apply for a new card at a better bank like USBank.

your still long enough out from buying a house that closing the account and opening a new account will not effect, if anything getting a much higher credit line at a new bank may help you 

[Anonymous]

Unless you have a really nice CL on this card and it's helping you with utilization, I'd call and ask to have it closed.  Chances are the retention dept. will offer to waive your fee when you do this. I kept my 7 and 8 yr old Capital One cards open fee free by doing this when they would occaisionally refuse to waive otherwise. Just be sure to be prepared to have it closed when you do this. Even closed the card will remain on your credit reports for 10 yrs.

You have a good EQ score, I agree with CreditAddict that you should apply for a better card before closing the Cap. One. Credit unions normally pull EQ. Have you checked out the Alliant Credit Union threads here? 

My personal favorite CC is the one Creditaddict mentioned...USBank. Do a little research here then decide which company and which card suits you best.

[Anonymous]

I suppose you could open a new account with Cap 1 and ask them to merge the accounts.

So, you can keep your history and even add the CL from the old card into the new one.

I have heard of people being able to do this but I've never tried it myself at least not yet.

I too, have a Cap 1 that has an annual fee that I would like to do away with but do not want to lose the history 

[Anonymous]

If you do decide to get a new card I would look into the Costco American Express. I have a goal to get that card. I am currently in college and work as a cashier at Target. I first gained interest in the card because so many people have it! After further research I realized why. Also a lot of people have the Alaska Airlines Visa from Bank of America. 

After a little research on the web I found a 740 or greater score is required for the AMEX card. Mine is currently 702.  

- Joe 

[Anonymous]

Hi Anya

Welcome to the CapOne build-an-unbearable card experience. 

You are experiencing the paradox of builder cards.  You probably were overjoyed when you got the card....YES.....but now, as time passes, fees add up, your credit improves and you want your card to better reflect your sleeker credit....it doesn't.

These type of cards basically stay the same as when you got together.  They don't tend to evolve.  This is something that everyone should know going in....that today you are in love, but eventually you will despise the card.  It's almost like dating....fall in love and overlook the "rough edges" cause s/he will change or I can change them....only later to find out that it ain't so and you have to move on.

If your history is only 2 years old and you have another card within 1 year old of the CapOne, dumping this card won't really hurt you.  As posted by VEEnVEGAS, even closed this account will continue as a reference and AAoA for 10 years.

Now, before you go and cancel this account, please post for us all of your current CC's, date opened, CL, and CCC issuer so that we can better advice on your situation....possibly on a better card to replace it.

Message Edited by txjohn on 04-15-2009 04:12 AM

[Anonymous]

Thanks so much for all your advice. I was surprised to see so many posts this morning. I like your comparison, Txjohn – that is exactly how I feel – hehe.

Here is my information:

1. CapOne Platinum   opened 05/2007 (so almost 2 years)            CL: $2250

2. Chase Amazon      opened 05/2007  (right after the first one)    CL: $3000

I am not worried that much about utilization, I don’t charge a lot and I pay in full, I could always ask Chase to raise my credit line.

I will do just like VEEnVEGAS said – call and ask to have the CapOne account closed and maybe they will offer to waive the fee.

I did not know about merging accounts, thanks for mentioning, I could try that too.

 Thanks for your recommendations: USBank, Alliant Credit Union and Amex Costco – it would be nice to have one of them.

[Anonymous]

As of late, I have seen zero success by anyone using "close my account" as leverage for a CLI.

Does your CapOne have rewards?  If so, do you use it enough to offset the late fee.  Basically if you can use it for expenses that you have each month for $4900 per year, then you can take the rewards as cash credit toward the card and the fees are offset.  If there are no rewards and they won't waive the fee, see if they can add rewards or PC to rewards....this is a way to get the equivalent of no AF.

If you can combine the accounts into a single, larger CL, that could be a good way to go.

However, AF's are a small fee to pay when you are getting established.  Check out the CU's and you may find that you have a new home