I have 6 credit cards -- three subprime (my older accounts) and now three new prime cards. All are in excellent standing and I pay off my balances in full every month. My credit building goal was to reach prime card status which thanks to this board, I have recently done. I want to dump my subprime cards because frankly I don't need them and their terms suck. With my three prime cards I have more than enough credit available to me than I can foresee needing for a very long time. So, I am wanting to cancel my subprime cards before the annual fees are charged for yet another year. Will it be such a horrible thing if I cancel all three cards at once and have them close the accounts by consumer request? If I am not looking to apply for any more credit cards for a long time and have no plans of buying a house or a car, will it make much difference? Thanks
Just something interesting that I was told on friday: A senior bank officer at my job, mbna. told me something interesting on friday. I asked him, "would it be wise to close credit cards that you are not using so that it doesnt take away from your "creditworthiness"" He said, "no, why would you want to cancel credit that was extended to you? the longer you have each credit card the longer the history and potentially higher your score will become" He also said "you should keep the accounts open, just use them once a month to keep a history running on it, but you dont have to close the account out" Just something interesting that i thought i would share. I can see his point of view. psugirl
WHY PAY AN ANNUAL FEE FOR A "FEW" EXTRA POINTS???? NO HOUSE...NO CAR SOON...DO IT... You might call them and tell them you DON'T NEED THEIR CARD ANYMORE...they may give you an offer you can't refuse. NO ANNUAL FEE UNSECURED INTEREST RATE <10% WORTH A TRY.
Re: Should I cancel 3 cards at once If you can't have the annual fee waived then go ahead and close them. But pay attention to how it affects your debt- to- limit ratio. If any one of them agrees to waive the annual fee, keep it until the tradeline is at least 3 years old. Saar
Your bank officer gave good advice. On top of that, those 6 credit cards can make him extra cash each and every month he didn't have before. Of course, he should work to get those annual fees reduced or eliminated. But by using each of his cards for one week and then retiring it for the month, paying the balance due on time, he can put his money in a savings account and earn interest on the money he has already spent for at least 3 plus weeks. If he is making 20 to 30 grand or more per year, that interest he is earning on the money he already spent adds up to be quite a bunch every year, even on the sub-prime cards. I do that. I put all my money in the bank and almost live completely and totally on my cards. I never carry much money on me. I do keep $500 on me at all times hidden all folded up way back in my wallet just in case of some little emergency, then maybe another $50 or so on a money clip for small change, but for the most part, it just stays there and never gets spent. Those credit cards are great money makers if you use them right. I would advise him to keep his cards and use them to his advantage for a change
How do you get the cards to refund your annual fee? What do you say when you call them. I have three paid off cards that I don't want to close for debt ratio reasons, but 2 have annual fees. What do I say to them? Can you take this off? Even though I am not using your card? How do I ask for this to be removed?
