topic Re: 1st Bank annual fee in Credit Cards

1st Bank annual fee

Anonymous — Thu, 23 Jun 2011 15:09:39 GMT

I'm having a hard time deciding whether or not to hang on to my 1st bank credit card. I have a short credit history but a great score. My average account age is 4 years, but this particular credit card I've had for almost 7 years. Two years ago they instated an annual fee of $25, not a huge deal and worth it to me at the time to keep it open. This year it's going up to $55 a year, which seems far to high for a card with no cash back or other incentives. Other factors include that it has no balence, and a high limit. I think it's about 20 -25% of my available credit. I read that my length of credit history will still have this card on it for ten years, but would be just be better in the long run to hang onto the card and pay the hefty annual fee??

Re: 1st Bank annual fee

llecs — Thu, 23 Jun 2011 15:12:12 GMT

How many other CCs do you have?

Re: 1st Bank annual fee

Anonymous — Thu, 23 Jun 2011 15:15:33 GMT

I have three major credit cards and 4 store cards. Also two very low student loans.

Re: 1st Bank annual fee

Anonymous — Thu, 23 Jun 2011 16:13:03 GMT

It's a decision only you can make but some things to take into consideration would be:

Is this card significantly older than your existing tradelines. If you intend to keep the other cards open and the 1st Bank stays on for 10 years it would not have a major impact on age of accounts when it does drop off.

More importantly you said it is 20-25% of your total available CL's. Are you carrying large balances on your other TL's because it will affect utilization if you are and that can affect your scores.

Also are you planning any major financial purchases (i.e.. new car or mortgage) in the near term future for which you will need the best possible FICO score?

Is $55 too high a price to pay for the continued benefit of the credit line reporting?

When you evaluate these issues the answer should be easier. Others will probably have more ideas.

Re: 1st Bank annual fee

p- — Thu, 23 Jun 2011 16:22:39 GMT

@Anonymous wrote:
I'm having a hard time deciding whether or not to hang on to my 1st bank credit card. I have a short credit history but a great score. My average account age is 4 years, but this particular credit card I've had for almost 7 years. Two years ago they instated an annual fee of $25, not a huge deal and worth it to me at the time to keep it open. This year it's going up to $55 a year, which seems far to high for a card with no cash back or other incentives. Other factors include that it has no balence, and a high limit. I think it's about 20 -25% of my available credit. I read that my length of credit history will still have this card on it for ten years, but would be just be better in the long run to hang onto the card and pay the hefty annual fee??

Have you tried calling and asking them to convert you to another card or waive the fee? You might get them to do that if you tell them you are considering cancellation.

Re: 1st Bank annual fee

llecs — Thu, 23 Jun 2011 16:33:47 GMT

Echoing what others have said, since oyu have other cards, then closing it won't be a big deal. I'd PIF first before closing. Even if it is your oldest, 10 years from now, your other cards will be about as old, relatively speaking, when this oldest drops. It won't be a big deal so as long as you don't add a bunch of new credit now.

Re: 1st Bank annual fee

Anonymous — Thu, 23 Jun 2011 16:52:38 GMT

I'll definitely call to see if there's an adjustment I can make to the card or the fee. It never hurts to ask, right? Thanks for the advice!

Re: 1st Bank annual fee

addicted_to_credit — Thu, 23 Jun 2011 17:04:11 GMT

you said it has a high limit if it were me and it had a 5k or better limit I would keep it or lets say your AF is 10% of your CL or lower keep it. while it will remain on your CR'S for up to 10 years you lose as stated 20-25% of your available credit that can depending on your UTL hurt you

Re: 1st Bank annual fee

laz98 — Thu, 23 Jun 2011 17:38:15 GMT

is this a 1FBUSA card, by any chance?

Re: 1st Bank annual fee

Anonymous — Fri, 24 Jun 2011 02:42:34 GMT

Yes it is a 1FBUSA card. And it is above 5k, with no balence. So it's definitely sounding like a keeper...

Re: 1st Bank annual fee

laz98 — Fri, 24 Jun 2011 03:24:50 GMT

same here. i recently posted a thread about this very exact thing! same AF. we are going to keep it as well.