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Would you pay the fee?

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Established Contributor

Re: Would you pay the fee?

I agree that you should make the best financial decision. Eventually things will work themselves out.

Message 11 of 40
Senior Contributor

Re: Would you pay the fee?

well, my issue is i've almost always had bad credit, so managing her good credit has been a bit different for me Smiley Surprised  so making the smartest financial decision isn't exactly clear-cut to me here, even if it seems obvious to others.

 

here is a snapshot of her cards:

 

15,500:  7 years old in about 2 weeks

14,000:  7 months

10,000:  5 years, 3 months

5,000:  1 year next month

2,000:  new chase freedom opened friday

 

store cards, she has 6.  the oldest card she has is 7.5 years old, just a $1,920 CL.  they range from $1,100 to $4,000, & most were opened between 2007 & 2009.  only one was opened this year, her sears card, which was opened in march.

 

her total util right now is about 25%.

Latest scores: Walmart TU: 769. MyFICO TU: 769. DCU EQ: 755. MyFICO EQ: 780. PSECU EX: 756. MyFICO EX: 780.
Message 12 of 40
Moderator Emeritus

Re: Would you pay the fee?


smc733 wrote:

 

I wasn't referring to anyone specifically...

 

I see it all the time though, I just generally disagree with people who recommend keeping a $59AF Orchard card open for age, for example.  Just some people have recommended things based on FICO, not necessarily the best fiscal advice.

 

In this case, unless util is high, I still vote to dump it.


 

The OP was asking whether to close the card or not. By your generalized statement that the action of keeping a card open with an AF is foolish then if the OP decides to keep the card then by extension the OP is then acting foolishly.

 

But If I misread your intent I apologize.

 

 

 

From a BK years ago to:
EX - 3/11 pulled by lender- 835, EQ - 2/11-816, TU - 2/11-782

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

 

Message 13 of 40
Frequent Contributor

Re: Would you pay the fee?

Take this example...if you have roughly 62,000 in credit, and are currently at 25% util. of that credit, then losing that trade line would lower your credit profile to around 46,500, and from that your overall util. would jump to over 33%.


myFICO Starting Scores: TU 643 03.10.09 EX 676 01.09.09 EQ 638 05.24.09
Current Score: (WalMart FICO) TU 792 04.03.13 (Mortgage Lender - HP) EX 745 02.06.13 (Mortgage Lender - HP) EQ 771 02.06.13
Goal Score: 800+


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Message 14 of 40
Senior Contributor

Re: Would you pay the fee?

thanks simon. yea, i did the math, but it wasnt an astronomical increase, so it wasn't a very convincing argument Smiley Very Happy

Latest scores: Walmart TU: 769. MyFICO TU: 769. DCU EQ: 755. MyFICO EQ: 780. PSECU EX: 756. MyFICO EX: 780.
Message 15 of 40
Moderator Emerita

Re: Would you pay the fee?

 


@laz98 wrote:

well, my issue is i've almost always had bad credit, so managing her good credit has been a bit different for me Smiley Surprised  so making the smartest financial decision isn't exactly clear-cut to me here, even if it seems obvious to others.

 

here is a snapshot of her cards:

 

15,500:  7 years old in about 2 weeks

14,000:  7 months

10,000:  5 years, 3 months

5,000:  1 year next month

2,000:  new chase freedom opened friday

 

store cards, she has 6.  the oldest card she has is 7.5 years old, just a $1,920 CL.  they range from $1,100 to $4,000, & most were opened between 2007 & 2009.  only one was opened this year, her sears card, which was opened in march.

 

her total util right now is about 25%.


Two things to consider: impact on longest history/ AAoA, and impact on util.

 

With the slightly older store card, longest history is OK.

 

Ten years from now, this might impact her AAoA, but as long as it keeps reporting (even though closed), it's still helping.

 

 -- so far, so good, I think

 

The potential issue is if she lets balances report. This card is almost 1/3 of her total available revolving credit. If she ever has big balances report (i.e., for a big BT at 0%), closing this card might hurt.

 

I'd recommend dividing her usual reported balances by the new total credit available ($46,500 - 15,500). What's the new reported util? If it's not over 9%, I'd say go on and don't worry about it.

 

 -- duh me, I just saw that you posted that she has ~25% reported util...  This is such a big CL that you might want to bite the bullet and hang onto it until the reported balances are reduced.

* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Message 16 of 40
Senior Contributor

Re: Would you pay the fee?

thanks hauling, for that awesome in-depth reply!

 

yeah, our tendency to carry balances comes & goes, so i guess i will have to keep it, until she gets another really high limit card.  we were hoping chase would at least give her 5k, but no dice Smiley Indifferent  i'm waiting for her auto loan inquiries to drop in november to try to get her in with usaa Smiley Happy

Latest scores: Walmart TU: 769. MyFICO TU: 769. DCU EQ: 755. MyFICO EQ: 780. PSECU EX: 756. MyFICO EX: 780.
Message 17 of 40
Valued Contributor

Re: Would you pay the fee?


@MarineVietVet wrote:

@smc733 wrote:

 

I wasn't referring to anyone specifically...

 

I see it all the time though, I just generally disagree with people who recommend keeping a $59AF Orchard card open for age, for example.  Just some people have recommended things based on FICO, not necessarily the best fiscal advice.

 

In this case, unless util is high, I still vote to dump it.


 

The OP was asking whether to close the card or not. By your generalized statement that the action of keeping a card open with an AF is foolish then if the OP decides to keep the card then by extension the OP is then acting foolishly.

 

But If I misread your intent I apologize.

 

 

 

From a BK years ago to:
EX - 3/11 pulled by lender- 835, EQ - 2/11-816, TU - 2/11-782

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

 


Nah, that was all my bad...  It came across way different than I intended.  

BofA Cash Rewards VS - $25k | Citi Double Cash World MC - $18.9k | Amex BCE - $50k | Discover it - $50k | Chase Freedom Unlimited VS- $10k | Barclay Ring $5k |
Message 18 of 40
Valued Contributor

Re: Would you pay the fee?


@laz98 wrote:

thanks hauling, for that awesome in-depth reply!

 

yeah, our tendency to carry balances comes & goes, so i guess i will have to keep it, until she gets another really high limit card.  we were hoping chase would at least give her 5k, but no dice Smiley Indifferent  i'm waiting for her auto loan inquiries to drop in november to try to get her in with usaa Smiley Happy


Did you try calling them and see if they will waive the AF?  It's worth a try.  Check the "My Offers" tab on her USAA.  She may already have a pre-approved offer.  Also, the effect of inquiries diminishes after a year; if they are older than tht, maybe it's time to apply now.  Or if they are recent, why not apply and risk getting denied, knowing that the inq will drop off pretty quickly anyway?

Message 19 of 40
Highlighted
Senior Contributor

Re: Would you pay the fee?


@p- wrote:

 

Did you try calling them and see if they will waive the AF?  It's worth a try.  Check the "My Offers" tab on her USAA.  She may already have a pre-approved offer.  Also, the effect of inquiries diminishes after a year; if they are older than tht, maybe it's time to apply now.  Or if they are recent, why not apply and risk getting denied, knowing that the inq will drop off pretty quickly anyway?


no, i haven't called them.

 

she isn't a full member on USAA, so she doesn't get anything on the "my offers" tab, unfortunately.

 

the inquiries are not older than a year, they are from this past november.  i don't want to apply right this second & risk getting another low limit (for her, anyway) card.  (trust me, 2k is fine with me!  LOL)

Latest scores: Walmart TU: 769. MyFICO TU: 769. DCU EQ: 755. MyFICO EQ: 780. PSECU EX: 756. MyFICO EX: 780.
Message 20 of 40
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