Should I...

[Anonymous]

Close my other two c/c accounts?

I'm 19. It was hard to start building credit. I got two c/c's, both with "annual fees". However, one of them is about to hit the one year mark and the other one is about 2/3 months from hitting a one year mark.

After they hit the one year mark, i'm thinking of closing the cards. I know i'll take a hit for closing the accounts. However, one has a 0 balance now. The other has 100$ balance. The 0 balance card has a limit of 250$. The other card with the 100$ balance has a balance of 350. However, I have "relationship" banking with Suntrust. I pretty much have a ton of stuff with them. Including my car loan. Recently, I applied & got accepted for a credit card with them. This one, was with a much higher limit. It even suprised me. It has a 2,500 limit. I know i'll take a hit for a newly opened account & lowing my already semi-non existant "credit history"

My question is, should I just keep the other two cards open for another year and let them hit the 2 year mark and close them, or just close them now? Would it be a bigger hit to close them later rather than now? I contacted the companies and they said they can't remove the fees because their cards are set up to be for first time / credit re-building.

[Anonymous]

Don't close the other two cards. Keep a balance on them...a very low balance (like $5-10). Make sure you pay on time. When the year comes up, if you're annoyed by the annual fee, call them and negotiate. They'll see that $2500 CC on your CR, and realize that they'd better sweeten the pot because theirs is far from the only game in town. If your payment record is good, once that $2500 card hits your credit reports (which, by the way, will likely raise your FICO a good 5 to 8 points), you should have a good shot at getting at least a $500 credit line from those two cards. (Ask for $1000!)

The only way I'd recommend closing one of your initial CCs is if the annual fee is high and they refuse to lower it, or if the CC was issued by a known "bottom-feeding" company that refuses to ever grant CLIs.

[MidnightVoice]

How high are the annual fees?

And have you considered calling them up and saying you now have better credit available, and you will close them if they don't drop the fees?  They want business 

[Anonymous]

The annual fee is only like 50$. The part that annoys me is that one of the C/C's also tries to charge a "participation" fee monthly on top of that.

I contacted the company (First Premier) directly and they refused to do anything. They said they are stricly a credit re-building / credit building for first timers and they do not remove the fees and offered to cancel my account for me.

So, I was just curious if I should just let it hit two years and then close. or just do away with them now, depending on how huge of a hit it'll take on my score.

[Anonymous]

---

@Anonymous wrote:
I contacted the company (First Premier) directly and they refused to do anything. They said they are stricly a credit re-building / credit building for first timers and they do not remove the fees and offered to cancel my account for me.

Throw them over the side then. You're young enough you won't take a significant hit on account age (you haven't been around long enough to get major props from age). And "participation fees" are ridiculous. No one without a major baddie in the past year or with a FICO above 550 should have to pay a monthly fee.

I would look at getting another, more reasonable near-prime card so your credit history doesn't get too thin.

Message Edited by TheNewWorldMan on 05-25-2007 02:07 PM