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Should I get some no annual fee cards or continue applying for cards with annual fees?

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v639dragoon
Member

Should I get some no annual fee cards or continue applying for cards with annual fees?

I have a relatively short credit history, a little over a year. Nearly every single one of my cards are going to hit me with an annual fee coming up in the next 6 months. I will probably close them if the fee is not waived, except for the sapphire preferred.

 

In order to build my AAoA more, should I sign up for some non-annual fee cards like the Chase Freedom? Would it be better to apply for these cards sooner and hold onto them, thus increasing my AAoA, or should I apply for more "prime" cards that have big sign up bonuses, but will likely be cancelled upon the yearly fee? 

Wallet: Amex Gold NPSL | Amex BCP $6k | Credit Union Card $1k | Chase Sapphire Preferred $5k | Southwest RR Plus $5k | Nordstrom Store Card $4k | Cap1 Venture $35k AU | Amex Plat Business NPSL
Message 1 of 4
3 REPLIES 3
b_seeker
Frequent Contributor

Re: Should I get some no annual fee cards or continue applying for cards with annual fees?

You can get prime cards without AFs(or "prime" cards with a prime rate). It is going to hurt you if you continue applying for cards that you cancel in one year, because I highly doubt any prime cards with AFs will ever continually waive the fees for you.



|| Barclaycard Rewards Visa $5500 || AMEX BCE $2000 || Discover IT $3000 || Amazon Rewards Visa $1800 ||
|| Chase Freedom $2700 || CSP $5000 || Chase Marriott Premier $7500 || Sallie Mae MC $3800 ||

FICO Scores: EX 752 (3/13/13) || EQ 782 (10/4/13) || TU 724 (1/18/13)

In the garden as of 10/12/2013
Message 2 of 4
boomhower
Valued Contributor

Re: Should I get some no annual fee cards or continue applying for cards with annual fees?

If your not getting value out of the cards why did you apply for them?  I can understand having AF's with subprime cards, we all have to start somewere and/or rebuild.  But if you app for a prime card with an AF you need to be able to get value from that fee.  Try and PC them to another card from the lender that doesn't have an AF. 

Message 3 of 4
indiolatino61
Valued Contributor

Re: Should I get some no annual fee cards or continue applying for cards with annual fees?

I doubt if opening cards and closing them as soon as the AF is due is something that banks or lenders look upon too kindly. I know there are "flippers" that do that to just get the rewards and then bail out, but this may hurt you in the long run...I don't know for sure. I know it sounds obvious, but don't apply for cards with AF if you don't feel comfortable in paying it, or you don't receive enough rewards to justify the AF. Good luck.

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Message 4 of 4
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