fisk Posted April 25, 2007 Report Share Posted April 25, 2007 I'm working on fixing my wife's credit. She has a cc that owe just over $100 on and I was about to pay it off and close it. As i've been reading this board over the last few weeks, i've discovered that I DONT want to close it, just pay it off.The cc statement for this month had a tiny little note at the bottom that said the yearly membership fee is going to be charged next month ($65). For obvious reasons, I dont want to spend $65 that I dont have to.So what would you do? Keep the account open and pay the money, or pay it off and close it? Which is better for your score?fisk Link to comment Share on other sites More sharing options...
Seanie Posted April 25, 2007 Report Share Posted April 25, 2007 I think it would depend on the situation...I would say NO you should not close it. If it is an account that has a positive history then you will want to keep that active. Also, if you close that CC than your available credit will decrease and that will most likely lower your score because balances on other TL's will be weighed more heavily. I think it would be best to suck it up and dish out the 65 bucks...but it depends on your overall report. Link to comment Share on other sites More sharing options...
jasen Posted April 25, 2007 Report Share Posted April 25, 2007 I've closed all my accounts that had yearly fees. I refuse to pay a company just for the "privilege" of having their card.It depends what's more important to you, and whether you really need a high score right now or not. Long term, you can simply open a new card somewhere else with no exorbitant fees and build a new tradeline. Short term, dropping it may hurt for a while. Link to comment Share on other sites More sharing options...
thomassl Posted April 25, 2007 Report Share Posted April 25, 2007 I agree with Jasen! Link to comment Share on other sites More sharing options...
lyle7289 Posted April 25, 2007 Report Share Posted April 25, 2007 Call the OC and tell them to waive the yearly fee. Tell them you are thinking about closing the CC because of it.What have you got to lose? You either get a CC with no annual fee or you close the card and save yourself $65.00IMO, I would not close the card regardless. To me the $65 bucks is worth the positive TL. Link to comment Share on other sites More sharing options...
jq26 Posted April 25, 2007 Report Share Posted April 25, 2007 Call the OC and tell them to waive the yearly fee. Tell them you are thinking.Try getting rid of the annual fee first. If thta doesn't work, then it depends on your timeline and purpose for credit repair. If your wife is looking to make a large purchase in the near future (house, car, etc.) then it may be worth it buck up for the $65 because it will keep the fico a little bit higher because of the age of the tradeline. If no such purchase is on the near term horizon, then ditch the card. You'd be paying $65 for....? However, before you close it, if she has no other cards and her credit is half decent, try to get her to open a decent card with no annual fee that you can keep for the long term. Try a credit union. Link to comment Share on other sites More sharing options...
fisk Posted April 25, 2007 Author Report Share Posted April 25, 2007 Thanks for the advice. I will get her to call the cc company and see if they'll wave the fee. We each get at least 1 or 2 cc offers in the mail every day so I know there is competition out there for these companies. Maybe they'll waive the fee to keep our business (even though we've already cut up the card and have no intention of charging anything on it.)fisk Link to comment Share on other sites More sharing options...
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