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Would you pay the fee?

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Senior Contributor

Would you pay the fee?

got notice today that the AF on my gf's oldest (non-store) card / highest limit card will be assessed next month.  it is her oldest card by almost 2 years.

 

we don't really use the card anymore, because the APR is ridiculous (don't start with the PIF stuff, please, we know), so it really just sits there.  there are no frills to this card, no perks or bonuses or anything.

 

i double-paid the final balance by mistake, & had a credit, which i thought i could use once in a while to keep the card active, but they refunded it to us after one cycle.

 

anyway, is it worth paying the $55 fee to keep the $15,500 line open?  her next highest line is $14,000 but that just got opened 7 months ago (navy federal).

Latest scores: Walmart TU: 769. MyFICO TU: 769. DCU EQ: 755. MyFICO EQ: 780. PSECU EX: 756. MyFICO EX: 780.
Message 1 of 40
39 REPLIES 39
Valued Contributor

Re: Would you pay the fee?

Even if she closes this account, it'll stay on her credit reports for 10 years. By then Navy Fed will catch up and become the oldest account.

Message 2 of 40
Established Contributor

Re: Would you pay the fee?

Can you PC to another card they issue?

Message 3 of 40
Valued Contributor

Re: Would you pay the fee?


@laz98 wrote:

got notice today that the AF on my gf's oldest (non-store) card / highest limit card will be assessed next month.  it is her oldest card by almost 2 years.

 

we don't really use the card anymore, because the APR is ridiculous (don't start with the PIF stuff, please, we know), so it really just sits there.  there are no frills to this card, no perks or bonuses or anything.

 

i double-paid the final balance by mistake, & had a credit, which i thought i could use once in a while to keep the card active, but they refunded it to us after one cycle.

 

anyway, is it worth paying the $55 fee to keep the $15,500 line open?  her next highest line is $14,000 but that just got opened 7 months ago (navy federal).



Do they have another CC you can PC to without a AF?

I sure hate to get rid of the $15K CL, even if I had to pay the $55 AF.

It's tough getting that type of CL now days with this financial crisis....may I ask what is your APR %?

Message 4 of 40
Frequent Contributor

Re: Would you pay the fee?

Correct, but the CL will no longer be factored into overall Util %, and losing that trade line could be a detriment to their overall credit profile in terms of available credit.


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 5 of 40
Senior Contributor

Re: Would you pay the fee?

thank you for the fast responses!  Smiley Happy

 

1.  can't PC, they only offer the one card (it's not a big bank).

2.  the APR is 29.99%.

3.  the CL is about 25% of her total available credit.

Latest scores: Walmart TU: 769. MyFICO TU: 769. DCU EQ: 755. MyFICO EQ: 780. PSECU EX: 756. MyFICO EX: 780.
Message 6 of 40
Valued Contributor

Re: Would you pay the fee?

Close it, for people whose credit is in good standing, paying an AF for age is asinine unless you benefit from getting in the 830s club.

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Message 7 of 40
Frequent Contributor

Re: Would you pay the fee?

Close it even though it makes up 25% of her available credit? That seems kind of drastic, no?


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+


Take the FICO Fitness Challenge
Message 8 of 40
Moderator Emeritus

Re: Would you pay the fee?


@smc733 wrote:

Close it, for people whose credit is in good standing, paying an AF for age is asinine unless you benefit from getting in the 830s club.



Calling someone foolish for such a decision is not exactly the nicest way to express your opinion is it? We might not agree with what someone else does but we need to try and be respectful in our response.

 

 

 

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 9 of 40
Valued Contributor

Re: Would you pay the fee?


@MarineVietVet wrote:

@smc733 wrote:

Close it, for people whose credit is in good standing, paying an AF for age is asinine unless you benefit from getting in the 830s club.



Calling someone foolish for such a decision is not exactly the nicest way to express your opinion is it? We might not agree with what someone else does but we need to try and be respectful in our response.

 

 

 

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".

 

 


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.

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 10 of 40
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