Need advice on whether to cancel WAMU credit card

[Anonymous]

I would like to cancel my Washington Mutual credit card (WAMU).  However, I am hesitant in actually doing this because I might be purchasing a home in the next six months.  I have a $1000 credit limit on the WAMU card but the card charges a $4 monthly fee and 26% APR even with a $0 balance.      I have been unsuccessful in getting WAMU to give me more favorable credit terms.   I would appreciate any suggestions.  Right now, my credit score is 655.  I have $4500 on Discover ($6000 credit limit), which is older than WAMU.  I also have $4500 of credit available on 5 other credit cards/lines (two are older than WAMU), all which carry low (less than $100 paid in full each month) or no balances.  I am considering paying down my Discover Card more aggressively if I cancel the WAMU credit card.  However, I am not sure if this is the best option.

Thanks in advance for your help.

Kal001

[Anonymous]

The WAMU does not have an AF-

Just let it be for now- leave it at a zero balance and pay down the other cards-

[Anonymous]

Actually, the WAMU credit card has an annual fee, $48 paid in monthly installments of $4 plus interest.

[Anonymous]

Sorry - I misread you post-

Given the short time before you mortgage-

I would either pre-pay a few months of AF or call and ask them to waive it-

I would not close it right now-

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Kal001 wrote:

Actually, the WAMU credit card has an annual fee, $48 paid in monthly installments of $4 plus interest.

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[Anonymous]

The Wamu CL effecting UTL probably is raising your score up to 10 points because of current debt on the Discover card. However the $4 monthly can also hurt you if it reports a bal of $4 each month on your CR. Keep $5 or more pos bal on your Wamu card each month so it reports $0.

Those other cards that have small balances. Pay them in full so they report $0 bal. Better if you have fewer obligations during a mortgage app. Then work on the Discover bal leaving as your only revolving debt when you apply if you can't pay if off. If you can pay it. Great! Leave $10 on it as a balance. If not just pay off as much as possible.

In summery, the $4 a month is little compared to the good it is doing right at this moment before you apply.

After your mortgage cancel if you wish to save money in fees.

FYI. A score of 700 is with in your reach if you pay down your Discover card aggressively enough.
(based on a score of 655 with 39% dt-cl%)

Message Edited by ilovepizza on 01-14-2008 09:45 PM

[Anonymous]

Timothy and ilovepizza,

Thank you for your help!

Kal001