Can I close my orchard bank account to avoid another 59.00 annual fee even though i have a 275.00 balance on a 300.00 credit limit? Do I have to pay it off first?They have'nt given me a credit line increase in almost a year and a 59.00 annual fee on such a small credit line just ain't worth it.
Have you tried talking to them? If you've been carrying a balance, there is a good chance they will agree to waive the annual fee (assuming the account is in good standing). They do it for me every year. Orchard will grant credit line increases on request. One time, I called for an increase and the rep. grumbled that I was not carrying a balance. I told her it was hard not to pay off a card with such a low limit. She raised it $500 on the spot. Then I carried a balance for two months, called again to get a lower interest rate and it was lowered from 18.9 to 15.9. It is likely that you will receive regular unsolicited increases now that you've been with them for a year. My two Orchard accounts are given increases every three months now, but I've been with them since '94. Of course, all of the above presupposes that payments are made on time. Patience is key.
Account agreements usually state that all regular fees wiil still be imposed on a closed account. So closing an account with a balance won't help you avoid an annual fee. Closing an account, and paying off the balance after closing it, is a way to avoid an increase in the interest rate. That's why provisions like one from Fleet Bank, which raises the interest rate to 24% or so simply for closing the account, are so pernicious.
