Should I close this Chase card?

[harleyquinn]

Hi Everyone,

Currently I have two Chase cards (due to them buying Wamu) They are both horrid interest rates...28 percent.

One card has a limit of 2660 and has 0 owed

The second has a limit of 5600 and also has 0 owed.

I called earlier to see if I could combine the card amounts, as I am pretty sure they both have an annual fee. They couldn't check because the computers were "down", but they did tell me "we would be unable to combine your accounts as that is not being offered now"   I am trying to pay off my debt and get my FICO score up (currently I think it is around 650)  but I know closing accounts can hurt as well. It kills me to have that interest rate AND have to pay to Annual Fees. However, if I can't combine them I am thinking of closing the smaller one.

My other cards are as follows:

Capital One: 19 percent interest about 1900 owed/ 2800 limit

Best Buy: 14 percent interest 200 owed/2500 limit

Barnes and Noble: 14 percent interest 300 owed/3500 limit

JCPenny: not sure of the interest 0 owed/200 limit

Sears: 23 percent interest 0 owed. 2660 limit

Any advice would be appreciated.

Thanks!

[Anonymous]

I hope you didn't call the number on the back of your card because they are worthless. They told me that I couldn't combine or change products. Then I called Chase: 877-781-3109 (combining & product change) I combined 2 WAMU cards and switched it to the Chase perfect card. So, please try this other number.

[Anonymous]

Wow, the interest rate is high on the 2 chase card you have. I'd say, close the one card with the lower limit that is if they both have an annual fee. However, doing so will reduce your fico scores, which I'm sure you know all about it. Btw, you should confirm with Chase if the cards have an annual fee or not? Also, maybe ask them to lower the interest rate on both cards if possible. Good luck!

[harleyquinn]

Thank you both for the advice!  I will try and combine the cards first by calling that number.

If that doesn't work yes, if there is an annual I may just close the smaller one!

Thanks again!

[Anonymous]

Don't close either one, even if they have an annual fee.  I see it as a small premium for the insurance of having available credit in this economy.  When things turn around a bit and have settled down, then reevaluate.  Just don't carry a balance on either of those cards.

Your best bet for FICO increases right now is to get that Cap1 balance below $850 as soon as you can.  The high utilization on that one card brings down your score.  Get it to 30% or less, you'll see a jump.  And, of course, you'll be saving on interest.

Good luck,harleyquinn! 

[Anonymous]

harley -

Unless you plan to carry a balance, the APR is not relevant, but the history and age of the accounts are.

However, the annual fee may be something you want to do away with.  But consider the real costs.  You pay $12-15 for FICO report, probably more than 1x per year to just "check" your credit and probably pay for a CR here and there.  So, an annual fee is often a bargain for the history, age and reference toward your credit building efforts.

Always carefully consider what it is you are trying to accomplish LONG TERM with your credit and finances before you take any particular action.  You can wait to cancel till right before the AF is due, then weigh the factors, call the backdoor to see if they will "waive" the fee, drop the fee, lower the apr, etc.

If all costs are a big factor (need to cut costs to bone), I'd still determine when the AF will be charged and wait to cancel until right before to see if you get any offers or opportunities to change products or have the fee waived.

[GST2008]

I just called the previously mentioned number and they told me that they weren't able to do product changes at this time  The CSR then informed me that (in case I had forgotten) I had a Washington Mutual Visa card and that chase only recently took over on the accounts lol.  I felt compelled for thanking her for the news update and keeping me informed as I was completely unaware that I had just called Chase and asked if I could do a product change.  She didn't seem to think it was funny.

[Anonymous]

Wow... That's really strange! They must have some sort of flag on certain accounts. I truly combined my wamu visa account into my wamu mc account and changed it to the Chase perfect card. The only thing was I had to pay off the balance before they combined the two. I want to combine my Chase Freedom into the perfect next.

[Anonymous]

I have a WAMU visa, well had now that it's Chase.  It wasn't any type of reward.  What type of product change would be advisable at Chase if I were to try.  I don't carry a balance on it and when I got the Chase disclosures, they said something like 29.99%

I've had this card through my rebuilding days and wondering if it is dead end card?  I don't plan to app with Chase for a new trade line.

[CreditAble]

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@Anonymous wrote:

Don't close either one, even if they have an annual fee.  I see it as a small premium for the insurance of having available credit in this economy.  When things turn around a bit and have settled down, then reevaluate. 

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 You raise a good point.

We have gotten in the habit of shunning cards with fees. Actually cards with annual fees might become the norm again in the future like they once were. 

 There are currently monthly fees charged for some savings accounts. Years ago that was unheard of. It might only be a matter of time before monthly fees are charged based on FICO scores. Chase is already charging monthly fees for some, life of balance, low interest rate, credit cards.

Amex charges hefty fees for elite privilege cards.

People gladly pay fees for rewards cards.

Why not pay a fee if it keeps credit options open,

FICO scores up, and interest rates down?

Makes sense to me.    

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