topic Re: Closing credit card because of annual fee? in General Credit Topics

Closing credit card because of annual fee?

Anonymous — Thu, 31 May 2007 21:48:22 GMT

I just called my credit card company after 6 months to ask if they could remove the annual fee and give me a greater credit increase (great than the increase from $500 to $600 that the automated lady offered). They said that they would never be able to remove the annual fee on this card, so I'd be stuck paying $35 a year forever for a credit card I only signed up for to get good credit. I have since been able to get a card with $5000 CL and no fee. I'm looking to buy a home in approximately a year, and right now I just have 2 credit cards. Should I cancel this credit card now and go with a better one or two, or should I pay the annual fee one or two more times before I get a mortgage? Also, my FICO score is 700. Would taking out an unnecessary, $5000 loan from the bank help to increase this score within a year or so? Thank you, Mike

Re: Closing credit card because of annual fee?

Tuscani — Thu, 31 May 2007 22:05:18 GMT

If your FICO is 700, you shouldn't have to pay an AF. I say close it!

Re: Closing credit card because of annual fee?

Cory — Thu, 31 May 2007 22:11:36 GMT

Mike-O wrote:
I just called my credit card company after 6 months to ask if they could remove the annual fee and give me a greater credit increase (great than the increase from $500 to $600 that the automated lady offered). They said that they would never be able to remove the annual fee on this card, so I'd be stuck paying $35 a year forever for a credit card I only signed up for to get good credit. I have since been able to get a card with $5000 CL and no fee. I'm looking to buy a home in approximately a year, and right now I just have 2 credit cards. Should I cancel this credit card now and go with a better one or two, or should I pay the annual fee one or two more times before I get a mortgage? Also, my FICO score is 700. Would taking out an unnecessary, $5000 loan from the bank help to increase this score within a year or so? Thank you, Mike

I don't know like NWM and Tuscani would know, but I do know that anytime you purchase home and you have outstanding balances, they make you pay them off before they close the mortgage. Or if you have enough equity in the home at the time of purchase they would use it to pay those balances for you.

The point I'm trying to make is don't get anymore debt until after you close your mortgage. Unless you get it now and pay it off before you purchase your home.

Hope that helps, but like I said NWM, LADY F and Tuscani knows best.

Cory Lee

Message Edited by Cory on 05-31-2007 03:11 PM

Re: Closing credit card because of annual fee?

Tuscani — Thu, 31 May 2007 22:10:51 GMT

Mike - Do you have any installment credit i.e. auto, student, or personal loans?

Re: Closing credit card because of annual fee?

Anonymous — Thu, 31 May 2007 22:15:47 GMT

If you have only 2 cards, I think it makes better sense to pony up $35 to keep a TL open for a year, and then dump it after you get the mortgage (and immediately before the next AF would be due).

Re: Closing credit card because of annual fee?

Anonymous — Thu, 31 May 2007 22:29:03 GMT

No, I have no debt at all right now: no loans, school debts. I've been using the cards but paying them off each month. I won't purchase a house for over a year, so I have some time to start working on my score. Could my score significantly increase from 700 within a year? Should I take out more debt (I only have a total $5500 limit), and should that debt include a bank loan? Thanks for the all the quick replies, Mike

Re: Closing credit card because of annual fee?

Tuscani — Thu, 31 May 2007 23:26:09 GMT

The card is only 6 months old.. I don't think the $35 is worth the little age you have.. you can easily get other prime cards with 700+. What are your other two scores?

Message Edited by Tuscani on 05-31-2007 06:26 PM

Re: Closing credit card because of annual fee?

Anonymous — Fri, 01 Jun 2007 02:25:52 GMT

If the card is only 6 months old, hold it for another 5 months and then call customer service and ask again if the fee can be waived. If it still can't be waived, tell them to close the account before the annual fee posts again.