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Household card - Anual Fee coming up


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I got this card Dec. '04, it's my second oldest tradeline since BK disch Oct. '03.

It's only a $300 limit, don't want to pay for CLI as I have since acquired

other cards w/ lower interest and much higher limits.

Is there any technique at negotiating down the Anual Fee? Do I start of

requesting they lower it and threaten (w/ full intent) to cancel if they

don't? It's scheduled ot show up on my next statement.

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Household is hard-a$$ when it comes to this stuff. I've had a perfect record with them for going on 4 years and they refuse to lower my interest rate from 22%. They have also disabled the "request credit limit increase" button on me since the inception of the a/c. (Yet they do autobump me up $200 every 6 mos. or so.)

But it never hurts to ask.

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But if they decide to be anal, is it going to hurt much to cancel this card?

What if I call up and state right off the bat that I want to cancel. Think

that will cause them to offer me something in order to keep the card?

This is the only card I have that has an anual fee and the smallest limit

second to Target ($200). But it is a year old.

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They will offer you something to stay. They gave me an $100 CLI to stay with them. Then, in the same month, I called up to let them know that $100 wasn't acceptable, so they lowered my interest rate and gave me another $200 CLI. Can't hurt to try.

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I think you really have to be in a position to make good on your threat, though.

Tadmartin, what was your original interest agreement? Prime plus what? And how long have you had the card? Do you have a BK? Just trying to work out what their parameters are for this sort of thing.

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To also add to LNY's point. It really depends on what you are trying to accomplish. If you need your scores to be at a certain point in say the next year or so, then IMHO I would leave the TL alone. Just in case you want to buy a home or car in the next year and need a certain score to lock in a particular interest rate. If not, then just close the TL if it really bothers you that much to pay the annual fee and your score will recover in time again.

On another note, so far I have one card (Orchard) that charges an annual fee and one card that charges a monthly fee (Crap One) which to me is the same as an annual fee. Anyway, right now I know I need to rebuild and Crap One is my oldest TL. Once I am where I would like to be, I am going to just close it if they don't give me what I want, take the score hit and wait to recover.

I definitely hear you on paying the annual fee. Who wants to pay those anyhow. Especially when you have one card that charges the annual fee, its the lowest limit and you have other cards with higher limits that charge no fee.

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LNY- you said you have had your card for 4 years with on time payments. What limit did they start you? How often do you receive CLI? How much has your limit increased since opening the account. I just got my card and used about 60% of the limit, but will pay it off thisw weekend. I haven't received a statement yet nor has my due date been established yet on my account via online access. After I pay this month's bill, I will keep the balance at 30-40%. Can you give me some pointers with this card to get my limit raised? I want to get the most out of this card and get my status back. This TL has not yet reported on my CRA's. I don't mind paying for CLI, but do they pull my credit each time if i have on time payments? Can they deny you if you ask every 3 mos? I want to get my $300 to $1K by June!! Thanks! I know I asked a lot... :roll:

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To also add to LNY's point. It really depends on what you are trying to accomplish. If you need your scores to be at a certain point in say the next year or so, then IMHO I would leave the TL alone. Just in case you want to buy a home or car in the next year and need a certain score to lock in a particular interest rate. If not, then just close the TL if it really bothers you that much to pay the annual fee and your score will recover in time again.

On another note, so far I have one card (Orchard) that charges an annual fee and one card that charges a monthly fee (Crap One) which to me is the same as an annual fee. Anyway, right now I know I need to rebuild and Crap One is my oldest TL. Once I am where I would like to be, I am going to just close it if they don't give me what I want, take the score hit and wait to recover.

I definitely hear you on paying the annual fee. Who wants to pay those anyhow. Especially when you have one card that charges the annual fee, its the lowest limit and you have other cards with higher limits that charge no fee.

I've got all the credit I need now. The only thing I need to make happen is refinance my home in 8/07. I just hate the thought of paying 1/5 of my credit limit in an anual fee if I don't have to.

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Wow, Heatherette... I think my starting credit limit was $1200. I think I paid for the first increase, but after that they continued to automatically bump me up $200 every 6 months. It's now at $2600.

Peacock, if your other accounts are now aged enough to be figuring into your FICO, you've only had this one a year and you don't really need or want it, I can't see it hurting you too much to close it.

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Gotta do what you gotta do. I'm keeping mine for age and utilization purposes, but at 22%, I'm not going to use it. They wouldn't budge on the interest rate, so fine. Whatever. They don't want my business... no skin off my apple!

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Yeah, that's what I was saying. I'm keeping mine for my own reasons, but you gotta do what you gotta do... your reasons dictate that you close it. I agree with your decision. I would have done the same thing in your circumstances.

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