I have two credit cards that are not doing me any good, never been late, both are in good standing. They are small limit cards, but the monthly fee is not worth it and they want a $25 dollar fee just to raise my credit up $100. I want to cancel, but will this hurt my credit. I have had them for awhile. Thanks Billy
What else is on your report? If they're your oldest cards and your others are very new, it will shorten your history. Are they secured cards? If so, see if they will unsecure them.
Hedwig you the man!!! Hedwig whats up! You have helped me so much in the past on this site. My credit score is finally looking good.Thanks!! The credit cards are newer, I do have two other cards both in good standing that I've had for a long time. Are they secured cards? If so, see if they will unsecure them. What will that do? I just want to get rid of the cards, they are both those bad credit, rip off cards that is suppose to help your credit and cost you and arm and a leg in fees. $25 fee so they can raise my credit limit, a whopping $100. I think I've had them for almost a year.
Actually, it will shorten your history TEN YEARS FROM NOW. The closed accounts will stay on your report for 10 years if they are in good standing. The only immediate effect of closing them will be the potential increase in utilization. And if they have a low limit, that won't be a major impact. (Example: Let's say you have three credit cards. One with a $1,000 limit, one with a $500 limit, one with a $200 limit. You have charged $300 on the high-limit card, $100 on the medium-limit card, and have no balance on the low-limit card. Your utilization is $400/$1700 = 23.5%. Now if you close that low-limit card, your new utilization is $400/$1500 = 26.7%. On the other hand, if you closed the $500 limit card, your new utilization would be $400/$1200 = 33.3%.)
If you feel that they are in good standing try to convince them to waive the monthly or annual fees. If they want to keep on doing business with you they might. If they don't, just pay off your balances and tell them to stick the cards where the sun don't shine.
