To Cancel or Not - Annual Fees

[Anonymous]

I have 2 credit cards which I purchased at a cost in order to build my credit back. I didn't get into much trouble, but being young and not able to pay my debt caught up to me. Luckily a low limit.

I am coming up to the point where I will be charged for the annual fee again. I was wondering what your opinion on when to cancel the card out would be. Since then I have been receiving offers all the time for new cards with no payments. I did pick up a card without an annual fee and a department store card.

I don't want to pay the fees if I don't have to nor do I want my credit score to be affected as I have been successful thus far in rebuilding it.

Any help is appreciated. Thanks.

[Anonymous]

Most people here do not like annual fees. I am the exception. I do not mind paying the $35.00 a year because I look at it as a membership fee to belong to a club. I have friends who bitc# and moan and then close cards because they won't reverse an annual fee but these same yahoos will spend money each year on Country Club dues and to other organizations that they rarely if ever attend functions for.

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[cobra19]

So, I assume you have a total of 4 cards. What are your actual FICO scores? Do you have any installment accounts reporting, or are they all revolving?

If you are rebuilding, there  is sometimes no other way to do it without fee cards. If your EQ is fairly decent, I would check out a few credit unions.

[Anonymous]

I am not familiar with all the credit terms and importance as I am now trying to educate myself. So please let me know what info would help make your responses easier.

Yes I have 4 cards.

First Premier - Opened ~December 2007

Orchard Bank - Opened ~March 2008

Wamu and Dept Store 

I do have an ~$20k student loan still out which I am paying monthly. (No defaults).

TU - 652 | EX - 642 | EQ - 647

[Anonymous]

I'd suggest calling them and asking to waive the fee.  You may need to tell the system you want to cancel so you get a customer retention rep.  Then say that you'd rather not cancel because you like company, they give you good service, you've had good experiences, blah blah blah, but the AF is too much for you now and ask them to waive it.

I haven't done this with a credit card, but I've gotten many monthly bills lowered by doing that.  The only caveat is if cancelling is automated, you may just end up cancelling...