@Anonymous wrote:
Hello,
I am very confused about what to do with my credit card situation. I still have my first-ever credit card (I've had it for 10-plus years) and recently I was informed that it will now carry a $39 annual fee. It's a Bank of America card. I have been rebuilding my credit and I have no credit card balances, but I do have student loans (all paid on time). I am torn between applying for a new card with no fee. I am just so mad that my credit card, which I have not paid late in more than 4 years, suddenly did this to me. Is it worth opening a new card and cancelling this one? I have not opened a new card in about 5 years, but I did go through a period of opening and closing accounts (I didn't know the "don't close your credit card account rule of thumb.) Or am I stuck with this fee? When I was informed about the fee, the letter said I can either pay the fee or cancel the card. I just don't understand, but I am scared to do anything about it because I don't want my credit pulled as I have read that decreases your credit score. So confused...
Even if you close the BOA card, it will still report as a positive tradeline for about ten more years. And one or two INQs will not cause you any harm.
I would try first to talk with BOA and tell them you will close the card if you have an annual fee attached to it.
Starting Score: ~500 (12/01/2008)
Starting Score: 648