Credit card Question - Close account or not?

WeiRDgeRL · ‎03-09-2010

Hi Everyone -

I have 2 credit cards. One of the cards I have had for 15 years with no late payments but it has an annual fee of $39.00 which they won't remove.

I rec'd a nice offer from my bank with a much lower interest rate and no annual fee. Also 0% balance for transfers and new purchases for over a year.

I want to transfer my balances from this other card with the higher interest rate and annual fee to this new card and close out the old card because I don't want any more annual fees.

My question is.... should I close the account? I have excellent credit history overall and don't want to mess it up yet I don't want to leave this other account open and charging me yearly for an annual fee whether I would be using it or not.

What do you think? I have browsed the internet for info and have found its a split if its good or bad. Just wanted some more opinions.

Thanks so much!

Spoiler

Sorry there is no spoiler, not sure what I did but I can't fix it LOL!

LilacTree · ‎03-25-2012

@WeiRDgeRL wrote:
Hi Everyone -

I have 2 credit cards. One of the cards I have had for 15 years with no late payments but it has an annual fee of $39.00 which they won't remove.

I rec'd a nice offer from my bank with a much lower interest rate and no annual fee. Also 0% balance for transfers and new purchases for over a year.

I want to transfer my balances from this other card with the higher interest rate and annual fee to this new card and close out the old card because I don't want any more annual fees.

My question is.... should I close the account? I have excellent credit history overall and don't want to mess it up yet I don't want to leave this other account open and charging me yearly for an annual fee whether I would be using it or not.

What do you think? I have browsed the internet for info and have found its a split if its good or bad. Just wanted some more opinions.

Thanks so much!
Spoiler

Sorry there is no spoiler, not sure what I did but I can't fix it LOL!

I've heard it will lower your FICO score if you close it. You have to make a choice on how important that is versus the annual fee.

Formerly Ford1224
We must always take sides. Neutrality helps the oppressor, never the victim. Silence encourages the tormentor, never the tormented. Elie Wiesel 1986

MillieMilan · ‎09-27-2014

close it

Tinkrbl44 · ‎08-23-2010

Keep in mind that your credit score is calculated, in part, with the ratio of total balances to total credit lines.

If you are going to close that account, you should open and establish the new one first. I'm sure others will have more input.

JustJazzmom · ‎03-09-2010

FICO score is most important if you are buying something in the near future like a car or a home. From your credit history, it looks like you pay bills in a timely manner. I would close it. Then about 2 months from now, check one of your credit reports (Experian, Equifax or Trans Union) to see if the report now shows closed by the consumer.

☼The best place to seek God is in a garden. You can dig for him there. GBShaw☼

itsmagic · ‎08-08-2011

I had a similar scenario a few years ago and I went ahead and closed it. I didn't really notice it affecting my credit score.

WeiRDgeRL · ‎03-09-2010

Thanks everyone! I appreciate it

2blonde · ‎03-10-2010

I just couldn't pay that annual fee...........I'd cancel it. If your overall rating is very good, I don't think it will hurt you enough to matter. They also consider income vs. available credit in your score, so having too much available credit can hurt you too.

Laura loves cats!