Closing Credit Card

[admiralsmoker]

I have a Merrick Bank credit card that I want to close. The problem is that it has only been open for 7 months. I now have 3 secured credit card accounts and 3 authorized user credit card accounts that are reporting. How long should I wait before closing this card or should I do it now?

[Jeffster1]

---

@admiralsmoker wrote:

I have a Merrick Bank credit card that I want to close. The problem is that it has only been open for 7 months. I now have 3 secured credit card accounts and 3 authorized user credit card accounts that are reporting. How long should I wait before closing this card or should I do it now?

---

What are your reasons for closing? Is there an AF? Don't like the service? Do you feel you have moved past Merrick, credit-wise? 

I closed my no AF Merrick card after 15 months simply because I had moved onto prime cards and my scores were in the 700s. Not everyone might have agreed with my move but it worked for me. 

it all depends on where you are credit-wise. If you feel comfortable with your 3 secured cards AND if the Merrick has an AF, go for it. 

[admiralsmoker]

The high annual fee and high interest rates is the reason I don't want this card anymore. Should I at least wait for the one year mark to close out the card? 

[FireMedic1]

Isnt the first year free then like $75 a yr after that? If so close it month 11.

[Jeffster1]

---

@admiralsmoker wrote:

The high annual fee and high interest rates is the reason I don't want this card anymore. Should I at least wait for the one year mark to close out the card? 

---

Makes sense that you are considering closing it, @admiralsmoker . Definitely close it before the annual fee gets charged to your account. I don't know if there really is an advantage to keeping it open at least a year. If there is, I'm sure someone else will chime in, but I'm not aware of any myself. 

Many will recommend you close by sending a certified return receipt letter to their corporate address after you call to close. There have been reports on here...I'm not aware of any with Merrick, specifically....where accounts have not been closed correctly by the rep; the AF was charged and the cardholder gets stuck with a late payment.

Congrats on your rebuild! It feels great to close a subprime card. 

[ForwardLooking]

When I was starting to go up the card tier ladder, I had a few starter cards that I closed within a year of opening because of the annual fees and high interest.  I realized most of these cards were (borderline) preditory when I opened a secured card with Navy Federal to replace them.  I decided to rip off the band-aid and close them as waiting was just going to make it more painful.  As long as you have a few decent cards you are happy with, I would say close the ones with the high annual fees down.

[Horseshoez]

I closed my first (secured) starter card after less than 7 weeks; not only were there no ill effects score wise, that same financial institution pinged me six months later and offered me an unsecured card with a limit three times higher than my secured card.

[Zoostation1]

What's the AF on the card?  I know they have some with crappy fees and others that are no AF.

[admiralsmoker]

It's 75 a year. It's a subprime predatory card that I opened to build credit. 

[Horseshoez]

---

@admiralsmoker wrote:

It's 75 a year. It's a subprime predatory card that I opened to build credit. 

---

Yeah, close that sucker; personally I'd close it now, but certainly close it before the AF comes due.