Help! I need to get out of this card!

[Anonymous]

After college my credit was damaged. That was about 5 years ago. The only card I could get at the time was a Continental Finance Card. I've had the card for 5 years but now have better credit.

The card is 20% APR, $18 monthly maintanence fee ($216 a year) and $50 annual fee. So I pay $266 a year just to keep the account open. What a complete ripoff. I'd like to cancel the card but it is my oldest account. If I get a new card I'd start from scratch with an average age of account history going down to zero. Older accounts help our credit due to the average age of accounts which makes up about 15 percent of the FICO score.

My only choice seems to be to get a new credit card and wait several years until it ages, perhaps 4 years and then cancel the Continental finance card. However four more years of paying $266 a year will cost me $1064.

Is it really worth it? Is there anything that I can do?

Someone suggested writing and asking them to change the terms i.e ask them to drop the monthly maintanence fee at least. I mean what a rip off, monthly maintanence fee??? What the hell is that?

[JM-AM]

The card should still report for the next several years even if you close it.

You should be getting another card as soon as you can, preferably a few more cards. Take the hit now as your credit is still growing.

[JoeBJay20]

Yeah, just get new cards and cancel it. You'll still get the age benefit for quite some time, and even with the drop in your account age after it falls off,  you still have to remember that age of accounts is only a small part of your score. Paying almost 250 a year far outweighs any benefits you're getting from having the account open.

[bettercreditguy1]

Ap for a couple of cards. You will take the new account hit, however they will completely fade after one year. With such a young file, your AAOA will rapidly rebound, plus your closed cc (do not close your only card until you have received and used your newer cards for one billing cylcle), will report for upto ten years, thus helping your AAOA. Long before the ten years, you will probably have one or two vehicle loans and perhaps a mortage. These too will grow your AAOA and your file. You are just beginning and have very little to worry about. Pay on time, pay in full if possible, and try to keep each cc unpaid balance less than 50% of the limit on a moving basis, under 20% if possible. Do not be concerned about your Fico Score except three or so months before you need to apply for new credit. , At that time you will want your cc balances to be as low as possible, under 10% of the limit to help your Fico score be at or near its peak before you apply for new credit.  GOOD LUCK! You are on the road to 850! (the highest possible score).Feel free to PM me.

[Burned2manybridgesB4]

If you initiate closing the card, it will report for ten years from the last activity point, and will help with your AAOA.

Apping for another card, as mentioned by others is a good idea, if not to do anything more than get away from the fees.

If it's your only active revolving line of credit, and you know your fico can take a hit short term, perhaps it'd be better to take two apps on at once, as to eliminate the want of another card in a few months, and it'll increase your score growth potential, as well as two new trade lines growing in age side by side.

[guiness56]

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@Burned2manybridgesB4 wrote:

If you initiate closing the card, it will report for ten years from the last activity point, and will help with your AAOA.

Apping for another card, as mentioned by others is a good idea, if not to do anything more than get away from the fees.

If it's your only active revolving line of credit, and you know your fico can take a hit short term, perhaps it'd be better to take two apps on at once, as to eliminate the want of another card in a few months, and it'll increase your score growth potential, as well as two new trade lines growing in age side by side.

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If you close a card in good standing, it will report as an account in good standing from the date closed, not the last activity.

[Burned2manybridgesB4]

Bad terminology on my end.

[jackg]

Get the heck out of it, yesterday, if not before. From the info you supplied it sounds like your still young (under 30) so you've got lots of time to get new cards established.