BOA refuses to waive my annual fee on useless card

[Aim_High]

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@K-in-Boston wrote:

The topic states that it's useless, but the body of your message states that it's your oldest card.  That means it's useful, but you have to decide if that usefulness makes it worth continuing to pay the AF. 

Using a card or not using a card should have nothing to do with having an annual fee, but whether the annual fee is worth paying compared to the benefit(s) of having the card does matter. 

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+1

Some considerations for why someone would keep a card open with an Annual Fee:

• You are building credit and need the account due to your overall credit file and history
• You get some type of benefits, rewards, and/or credits back from the card greater than or equal to your AF
• You are carrying balances on your cards and closing a high-limit AF card will result in a significantly increased utilization rate across your total accounts
• The card has your lowest APR which gives you options for carrying a balance when needed.
• The card age has a positive effect on your credit which you'd like to maintain.  (*Yes, I know a closed card will stay on your report for up to 10 years but I have four active accounts over 20 years which continue to substantially help my AAoA.  Consequently, I'd like to continue to keep them open.  So in some cases, this is still a long-term consideration beyond the 10-year age argument.)
• Having the card makes life easier for you in some way.  (For example, a card with a bank you do primary banking with makes it easier to manage from your bank login.)
• You just "like" the card enough to pay an AF that doesn't make financial sense.  (For example, people keep "status" cards that don't make sense for them because they like to keep up appearances.)

[Anonymous]

@VPExecutive  Thanks for the tip...the card I have now is unsecured and when I tried last year to get another (the cash rewards card), they denied it and instead gave me a CLI on the AF card. I think I will go ahead and close it after I get my 3x CLI from Amex later this month. Might as well cut my losses if I am not planning on using the card anytime soon. 

Thank you everyone who posted and gave me advice!!! I know BoA doesn't owe me anything but it never hurts to ask especially considering how long I have been a customer (over 20yrs now!) with them. I now see I need to maybe take my business elsewhere to a CU possibly. 

[Aim_High]

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@Anonymous wrote:

Won't closing it lower my average age of accounts and reduce my available credit? It was my only credit card for a few years  and the card has a $10k limit.

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The card should stay on your credit report for up to ten years and continue to age your accounts until then. 

More of a concern would be whether you are carrying balances and how losing a $10K credit limit would affect your utilization.  What is your total debt and total lines of credit across all accounts?

As I pointed out in my other posting, I have some very old (20+ year) cards that help my credit age.  But for the short term (less than 10 years), account closures are not a major reason to consider whether an account should be kept open.

[VPExecutive]

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@Anonymous wrote:

@VPExecutive  Thanks for the tip...the card I have now is unsecured and when I tried last year to get another (the cash rewards card), they denied it and instead gave me a CLI on the AF card. I think I will go ahead and close it after I get my 3x CLI from Amex later this month. Might as well cut my losses if I am not planning on using the card anytime soon. 

Thank you everyone who posted and gave me advice!!! I know BoA doesn't owe me anything but it never hurts to ask especially considering how long I have been a customer (over 20yrs now!) with them. I now see I need to maybe take my business elsewhere to a CU possibly. 

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Have you tried looking at a Chase card or one through Citi? 

[Anonymous]

@Aim_High  Yes...my biggest consideration is the impact to my utilization. I have a BT on one of my Amex cards that I have until next year to pay off. I don't want my utilization to increase because I close the BoA account and lose that $10K limit.

@VPExecutive  I have a chase freedom card so I am ok with my setup but I'm not able to do a CLI with them without a HP. 

I guess if I think about it, the $39 AF is the price I'm paying currently for the utilization padding BoA is offering. The card I have has no rewards. It's as no frills as they come. I don't even think they promote the card online. There's no miles you earn, no travel benefits, no cash back. I have some cash back offers similar to Chase and Amex offers at a few places like Starbucks where I can get cash back but I can use my BoA debit card for those offers and not run the risk of having to pay 20% interest for a latte. 

Fortunately I'm up for the 3x CLI with my Amex this month. If/when that goes thru, I will revisit closing BoA. Given the economic uncertainty however, I might just end up keeping the BoA card open and throw a few small monthly bills on it for now that I will PIF so they don't CLD for non usage. 

[AllZero]

What is interesting is they have removed the annual fee for new applicants on the secured card from their website. I don't recall exactly when they did that.

[Anonymous]

@AllZero @Just my bad luck then! Not for nothing, the card was instrumental in my rebuild so I can't complain too much. I just am annoyed at the AF that I guess I am locked into paying. Oh well there are worse problems to have!

[Remedios]

@Anonymous  one additional thing, that 3X CLI is not guaranteed, especially not now. 

While you're free to close the card, wait to see the outcome of your CLI request. 

[AllZero]

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@Anonymous wrote:

@AllZero @Just my bad luck then! Not for nothing, the card was instrumental in my rebuild so I can't complain too much. I just am annoyed at the AF that I guess I am locked into paying. Oh well there are worse problems to have!

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@Anonymous  I would be annoyed too. Just keeping on trying for the waiver and future PC. Good thing is the CLI request are SP.

[Anonymous]

Not knowing your whole profile and how this closure will affect you, I cannot accurately say which way to go. That being said, if you feel $39 AF is worth the price of UT padding for a temporary score ding. That is totally up to you, people have their own justifications for things they do and it only needs to make sense to them.

IMO though I'd close is because you're out $156 so far for basically nothing? Being there are no rewards or perks associated with said product? Plus it's not really old enough TL to be considered a keepable at an expense, and AAoA shouldn't take a hit by closing it. Only when it drops off. Plenty of time to add account between now and then.

Finance over Fico, right? Once you get UT down and scores rebound you should start seeing the clouds part for better cards to replace thse types of accounts.