topic Re: Should I close my $150 Annual Fee Credit Card? in Credit Cards

Should I close my $150 Annual Fee Credit Card?

Anonymous — Wed, 19 Mar 2008 16:31:08 GMT

I got a Tribute MasterCard last year with a $150 annual fee. CLI $450 Balance is $368. There is a $6.50 monthly maintenance. I called to see if they would waive the annual fee - NO. Should I pay this card off and close it before the anniversary date in April? If I close it how bad with that affect my credit scores?

Re: Should I close my $150 Annual Fee Credit Card?

Anonymous — Wed, 19 Mar 2008 16:34:46 GMT

Get rid of them as fast as you can!

Re: Should I close my $150 Annual Fee Credit Card?

llecs — Wed, 19 Mar 2008 16:53:37 GMT

If you close it, the only negative impact would come from a higher utilization overall assuming you have balances reporting on your other cards. It could also be negative if that is your only card. Just make sure you pay it off completely first.

I'd kill it the first chance I got. I have Orchard and Credit One and they are going bye-bye ASAP.

Re: Should I close my $150 Annual Fee Credit Card?

Red1Blue — Wed, 19 Mar 2008 17:07:19 GMT

Close it. It is lot of money to pay. I just closed my CreditOne card which is costing me $79/year.

Re: Should I close my $150 Annual Fee Credit Card?

Anonymous — Wed, 19 Mar 2008 17:27:15 GMT

Close it as fast as you can. That AF is ridiculous.

BUT....close it AFTER you pay it in full, AND you are positively for sure it is reporting to all the CRA's with a $0 balance.

I didn't even KNOW that there was a sub-sub-sub prime card out there with such an annual fee.

Re: Should I close my $150 Annual Fee Credit Card?

fishbjc — Wed, 19 Mar 2008 17:39:01 GMT

What Sylvia said!

Re: Should I close my $150 Annual Fee Credit Card?

Anonymous — Wed, 19 Mar 2008 18:08:10 GMT

Is this the only card u have? ifso I would just keep it pay down yr balance and pay on time and yr score will go up u need to have CC history and low utlization dont keep the balance high tht also affects yr scores. try Orchard Bank also to improve yr score and to have more thn one account open

Re: Should I close my $150 Annual Fee Credit Card?

Anonymous — Wed, 19 Mar 2008 23:14:03 GMT

this card should be illegal. I got one with no fees but closed it same day after researching them.

Re: Should I close my $150 Annual Fee Credit Card?

Anonymous — Thu, 20 Mar 2008 00:37:10 GMT

Close that bad boy!

WBLAKE

Re: Should I close my $150 Annual Fee Credit Card?

nathan — Thu, 20 Mar 2008 00:55:27 GMT

I will be closing my orchard in two mos. They refused to waive the $108 af or to even give me cli. They asked why i am not using the card anymore and i said becuse i now have cards with high limits and i do not want to jeopadize my utl with their $300 card. I told them i am not subprime anymore and a $300 cc now seems like an insult to me. I thanked them for giving me a chance, but i paid them $108 for a year just for that, hey i am ready to move on. I got my orchard last may 07, when should I close it to avoid the next af? Should i close it end of april or end of may. i have been paying the af monthly but i know since they know i will be closing the cc on its first aniversary, they will charge it all at once to get me to pay. Appreciate any advice.

Re: Should I close my $150 Annual Fee Credit Card?

Anonymous — Thu, 20 Mar 2008 01:27:08 GMT

I'd drop them ASAP

I got my Orchard last week, and I'm planning to close it during month 11 already lol. I have no plans to pay an AF as high as their's is, I only went for it now because I thought that BofA had declined me, and was desperate to get another TL up and they waived the annual fee for the first year.

I should be out of "secured only" scores by next year and if not, I'll take my Orchard deposit and drop it on WF. Anything to keep from giving them money via an AF!

Re: Should I close my $150 Annual Fee Credit Card?

NICKI183 — Thu, 20 Mar 2008 02:37:10 GMT

I totally agree with everyone in this thread. Its bad enough that you have to go to these specific creditors,but they almost ROB you to get it. You really run the risk of going over your limits with these high annual fees, maitenance fees, and the exorbonate start up fees! You range in available credit of $50$100. WHAT CAN YOU REALLY PURCHASE WITH THAT??????

I plan on getting rid of my Credit One Bank, Orchard, First Preimier AKA Centennial and give them a nice burial. As soon as they age on their 1st birthday they go bye bye.

Re: Should I close my $150 Annual Fee Credit Card?

Anonymous — Thu, 20 Mar 2008 15:38:51 GMT

yes yes and yes--NOT WORTH IT!!!!!!!!

Re: Should I close my $150 Annual Fee Credit Card?

Anonymous — Thu, 20 Mar 2008 16:06:51 GMT

I love it when every body agrees with each other.

Re: Should I close my $150 Annual Fee Credit Card?

Anonymous — Thu, 20 Mar 2008 18:39:55 GMT

CLOSE. If you need a card reporting that badly, get a secured card. Those type of cards do not help any better than secured. Secured cost from $0 - $50 with out monthly fees in many cases and you get your secured money back!

Re: Should I close my $150 Annual Fee Credit Card?

Anonymous — Fri, 21 Mar 2008 00:10:50 GMT

birddog, we all on your side. Listen to everyone of us and follow our direction, which is PIF before the closing date and close it after you see the balance is $0.

Sylviatob wrote:
I love it when every body agrees with each other.

Me too Sylvia!

Re: Should I close my $150 Annual Fee Credit Card?

Anonymous — Thu, 27 Mar 2008 14:37:47 GMT

birddog123 wrote:
I got a Tribute MasterCard last year with a $150 annual fee. CLI $450 Balance is $368. There is a $6.50 monthly maintenance. I called to see if they would waive the annual fee - NO. Should I pay this card off and close it before the anniversary date in April? If I close it how bad with that affect my credit scores?

What are your FICOs, do you have other CCs, and if so what are your CLs?

If this is your ONLY CC, then it might be worthwhile to keep it, at least another year. But if you have others, with better terms, then I'd PIF Tribute and close it.

Re: Should I close my $150 Annual Fee Credit Card?

Anonymous — Thu, 27 Mar 2008 15:21:47 GMT

PIF as soon as possible and close it once everything on your CR looks kosher. There is no valid financial reason you should keep this card. Yes, you score might take a hit but in this circumstance it is well worth it. No need to pay these ridiculous fees. They are taking advantage of you and killing your bottom line dollar by dollar. A good alternative to this is a secured card.

Re: Should I close my $150 Annual Fee Credit Card?

Anonymous — Thu, 27 Mar 2008 15:51:43 GMT

Thank you all for your advise. I will be PIF today. I am afraid that the new annual fee will be added before the $0 balance reports to the CR. How should I handle?

Re: Should I close my $150 Annual Fee Credit Card?

jackg — Thu, 27 Mar 2008 19:51:48 GMT

Birddog,

The initial reaction from everyone will be to close it, however, you are aware of all other circumstances in your credit report that will be effected by this action.

First, how many other tradelines do you have? how old is this one? how old are the others? How will utilization be effected? I suggest that you ask yourself all the appropriate questions before you close it.