topic Re: Help! They have increased my monthly fee in Credit Cards

Help! They have increased my monthly fee

Anonymous — Mon, 06 Jul 2009 17:02:36 GMT

To $10.00!!! I said that I wanted it back to the originial $6.00 but they said that they will close the card of I don't accept the terms. I want to buy a house in a year and my credit rating is 692 so I don't need to make any mistakes. If I close this, will it affect my credit? What should I do? A balance transfer? Please help! I have no clue where to start.

Re: Help! They have increased my monthly fee

Anonymous — Mon, 06 Jul 2009 17:10:35 GMT

Is this your oldest credit card? Your only card?

If this is really going to make a huge difference in your credit score I'd keep the account open until after you close on your house. The extra $4.00 per month will only come to $48.00 in a year, not much at all if it makes a difference in your getting the mortgage or not, or in the rate you receive for that mortgage.

Re: Help! They have increased my monthly fee

Anonymous — Mon, 06 Jul 2009 17:15:32 GMT

Thanks for the quick reply! I have one other card and it's like 2 months old. I've had this one for about 3 years with a great payment history. I understand that closing and opening credit cards is not a good reflection on your report because my score dropped five points for opening a new card. I am buying a house in a year. Do you suggest that I keep it and suck it up, so to speak? Again, thanks!!!!

Re: Help! They have increased my monthly fee

Anonymous — Mon, 06 Jul 2009 17:16:51 GMT

Also I don't have any other debt that I am showing payments on other than my student loans and thwy are deffered until after grad school

Re: Help! They have increased my monthly fee

Anonymous — Mon, 06 Jul 2009 17:39:49 GMT

Closed cards are supposed to continue to figure into AAofAs for 10 years. So closing this card should not affect that. Utilization may very well be affected though, which would lower scores. A lot depends on what your credit limits are and how you use your new card.

Truthfully, I'd continue to pay the fee and keep the card open until I had the mortgage or another tradeline. You have a thin file already and IMO closing this card might make things worse.

Hopefully others with more experience in this will respond soon to your questions.

Re: Help! They have increased my monthly fee

athensguy — Mon, 06 Jul 2009 18:23:55 GMT

If it's going to be a year before a mortgage application, I would try to get two more cards and then close the one with the monthly fee.

Re: Help! They have increased my monthly fee

BungalowMo — Mon, 06 Jul 2009 18:39:48 GMT

Yeah...if I were you, until you get that house...get a fat straw & put some cubes in that glass &, as you said...

Suck it UP!

It will help if that glass has a tasty beverage too!

Re: Help! They have increased my monthly fee

Anonymous — Mon, 06 Jul 2009 19:54:58 GMT

Okay! I guess I'll suck it up, then. I'm glad I thought of posting before cancelling.

athensguy

You suggested that I get two more cards before I buy the house. Wouldn't that lower my score further or should I have four cards under my belt and hope that my score increases before next year? I only have two cards so far and a student loan. I just got the second one and haven't charged anything. Thanks!!!

Re: Help! They have increased my monthly fee

Anonymous — Mon, 06 Jul 2009 20:04:44 GMT

I agree that another card or two would probably improve credit scores over time. You have a year before looking for a mortgage...plenty of time to recover from any loss of points due to new inquiries, new accounts, etc.

What other card do you have now?

Re: Help! They have increased my monthly fee

Anonymous — Mon, 06 Jul 2009 20:11:41 GMT

The new one is called Continential Finance Gold Mastercard. The pre-approved form came in the mail and I just went online. Can you suggest any cards that will accept 692 score, hopefully without an enormous monthly fee, $10.00 adds up! I don't know how to search for cards and the FICO site didn't give alot of suggestions. I really would like Citibank but I dont want to apply and not get approved and that effect my credit too

Re: Help! They have increased my monthly fee

ocheosa — Mon, 06 Jul 2009 21:05:49 GMT

@Anonymous wrote:
The new one is called Continential Finance Gold Mastercard. The pre-approved form came in the mail and I just went online. Can you suggest any cards that will accept 692 score, hopefully without an enormous monthly fee, $10.00 adds up! I don't know how to search for cards and the FICO site didn't give alot of suggestions. I really would like Citibank but I dont want to apply and not get approved and that effect my credit too

Cant see why citibank would not approve you, assuming there arent any negs on your report. They may start you with a low CL, but they usually give a nice auto CLI at 4months. Also a CU card would be great. You would then have a year for the new account(s) to age before applying for your mortgage.

Message Edited by ocheosa on 07-06-2009 02:05 PM

Re: Help! They have increased my monthly fee

haulingthescoreup — Mon, 06 Jul 2009 21:51:53 GMT

Continental Finance is scum.

Is the 692 your FICO EQ score? (Sorry if you've posted this; I'm catching up.)

If that's your FICO EQ, I'd suggest checking out a local credit union. Maybe Alliant would work (national-level CU), but I've lost track of their requirements. There are two gi-normous threads and a bunch of others about Alliant here on the CC board that would help you make an educated guess.

All CCC's look at more than your scores, so be sure that when you read CC recommendations and typical scores, you keep in mind whatever is on your own credit reports (thin file, lates, high util, short history, whatever.) Also, note the date of the posts that you read --things have changed a lot over the last 6 months.

Re: Help! They have increased my monthly fee

Anonymous — Mon, 06 Jul 2009 22:39:47 GMT

CCCU took my 698 Equifax.

Re: Help! They have increased my monthly fee

Anonymous — Mon, 06 Jul 2009 22:59:52 GMT

Thanks for the education. I will try to apply for citibank. I have a savings account with them that I've had for years and student loans so maybe they will except me. Thanks!!!!!

Re: Help! They have increased my monthly fee

Anonymous — Sun, 19 Jul 2009 00:44:05 GMT

Hi, I was reading some of your old posts and comments and responses. You say 'they' increased your monthly fee...You mean the CC company increased your interest rate?? What did you end up doing? citi wants to increase my rate from 11.2 to 30% for no reason. Never been late. Thanks.

Re: Help! They have increased my monthly fee

JoeBJay20 — Sun, 19 Jul 2009 01:48:18 GMT

@Anonymous wrote:
Hi, I was reading some of your old posts and comments and responses. You say 'they' increased your monthly fee...You mean the CC company increased your interest rate?? What did you end up doing? citi wants to increase my rate from 11.2 to 30% for no reason. Never been late. Thanks.

No, the OP was referring to his card having a monthly maintenance fee, not the interest rate. As far as your post goes, first I would search on here for a backdoor number to Citi to see if you can't get that rate jack reversed or at least reduced. Secondly, do you PIF every month or carry a balance? If you PIF every month, the interest rate is inconsequential. If you carry a balance, you may want to look at getting another CC with a low or 0% interest rate on balance transfers.

Re: Help! They have increased my monthly fee

Anonymous — Sun, 19 Jul 2009 01:55:25 GMT

Thanks. I will not pay the high finterest rate. I pay more than asked amount, but do not pay it off. I am looking into doing that now. Take care.

Re: Help! They have increased my monthly fee

Anonymous — Sun, 19 Jul 2009 03:23:36 GMT

What I did a year b4 I purchased my house was sign up with a good CU and applied for 1 of the CC's. That way I was able to set up a good relationship and ended up getting a good rate on my Mortgage thru them. Just call 1 and explain your situation and see if you're able to get a good balance transfer deal. Good Luck with whatever decision u make.