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Closing accounts with no balance, that charge annual fees?

Established Member

Closing accounts with no balance, that charge annual fees?

I have recently paid off all of my credit cards, and I am trying to up my credit score, however I have 4 credit cards with annual/monthly fees that I would like to cancel and only keep one card for emergencies so I am not stuck paying the fees.
 
Is it better for me to close the accounts, or pay the fees? Will I see a drop in my score from closing the credit cards?
Message 1 of 6
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Moderator Emeritus

Re: Closing accounts with no balance, that charge annual fees?

Message 2 of 6
Established Member

Re: Closing accounts with no balance, that charge annual fees?

Close the accounts. 
Message 3 of 6
Senior Contributor

Re: Closing accounts with no balance, that charge annual fees?



smartgurl wrote:
I have recently paid off all of my credit cards, and I am trying to up my credit score, however I have 4 credit cards with annual/monthly fees that I would like to cancel and only keep one card for emergencies so I am not stuck paying the fees.
 
Is it better for me to close the accounts, or pay the fees? Will I see a drop in my score from closing the credit cards?

What are your CC balances and CLs?
 
If one CC is enough for you, well then OK. However, you'll find that it's far better to have a CC and not need it than to need a CC and not have it.
 
Message 4 of 6
Established Member

Re: Closing accounts with no balance, that charge annual fees?

My balances are $0, and my CLs are $750, $300, $300, and $250.....
Message 5 of 6
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Senior Contributor

Re: Closing accounts with no balance, that charge annual fees?

Assuming the best case scenario of the one you want to keep having a $750 CL, I would tell you to first obtain other CCs with low or no AFs and higher CLs BEFORE you close the cards charging you fees.
 
Read CC Payoff Tactics.
 
See the Friendly CC link in my sig. Local CUs, FCUs, AMEX, Barclays (formerly Juniper) are but a few to consider.
 
I think the ideal position to be in is having multiple no annual fee CCs. You don't want the fees, but you also don't want to be subject to the whims of any one CCC. They get bought and sold all the time. Your one ideal CC today could turn into a bane tomorrow when First National Bank of Gehenna acquires your CCC.
Message 6 of 6