What to do about a Credit card

[Tigger2ntinkerbell]

I have a cc that I want to pay off, they charge me a monthly fee just to have the card.
It's a fee with interest added every month to about 6.28 x12 months is $75.36 to sit in a drawer and not use.

I told them I would like to pay the balance in full and close the account.

They stated the reason to keep it open, is it will hurt my credit severely if I closed it.

I have other debts that I have paid down or off. And working with this company is a pain.
So would it hurt my credit for more than 3-6 months??.
TIA

 

[Marionnette]

I have a cc that I want to pay off, they charge me a monthly fee just to have the card.
It's a fee with interest added every month to about 6.28 x12 months is $75.36 to sit in a drawer and not use.

I told them I would like to pay the balance in full and close the account.

They stated the reason to keep it open, is it will hurt my credit severely if I closed it.

I have other debts that I have paid down or off. And working with this company is a pain.
So would it hurt my credit for more than 3-6 months??.
TIA

I’d dump that dog of a card. It’s not worth the price. Yes, your credit takes a hit when you close any card because your available credit goes down and if you have outstanding debts, your debt-to-credit ratio goes up. It’s a small ding that will be erased as you pay off other debts.

 

[Darcy03231]

Here's another vote for pay-off and cancel. You won't take that much of a ding. In fact, if you have good credit I'd apply for a different, fee free card.

 

[seashoreCM]

I have a cc that I want to pay off, they charge me a monthly fee just to have the card.

They stated the reason to keep it open, is it will hurt my credit severely if I closed it.

Exaggerated salesmanship scare tactics.

+3 -- Close it.

 

[Etonduf]

They stated the reason to keep it open, is it will hurt my credit severely if I closed it.

Even if it weren't a bad card, I would consider closing it just because they told you this. Closing a card can impact your credit score, but not severely--they are just trying to intimidate you, and that's not a company that deserves you as a customer.

And, yes, that's a bad card and you should close it immediately. If you're paying any kind of fee you should have something tangible to show for it (like a bonus for opening the card, a free hotel night or other travel benefits, etc)

 

[Etonduf]

And just to add: if you want specific suggestions on a different card, you could post on the "I love credit cards so much" thread. There's a lot of talk there about signing up for multiple cards to earn bonuses, which may or may not interest you, but the folks there are nice and knowledgeable and happy to answer any credit card-related questions.

 

[trenty]

And just to add: if you want specific suggestions on a different card, you could post on the "I love credit cards so much" thread. There's a lot of talk there about signing up for multiple cards to earn bonuses, which may or may not interest you, but the folks there are nice and knowledgeable and happy to answer any credit card-related questions.

If you do not pay the balance in full each month, do not sign up for new cards to earn rewards. The interest you will pay will be more than the rewards earned.

But, yes, the "I love credit cards.." thread is great and has tons of useful information with many friendly people who give great advice. They will all tell you the same - pay your balance in full, otherwise the rewards game is not worth playing.

 

[badiggio]

you sure that this charge isn't cc insurance on your balance?If so,pay off your balance and then there won't be a charge monthly,without closing it.

 

[Tigger2ntinkerbell]

you sure that this charge isn't cc insurance on your balance?If so,pay off your balance and then there won't be a charge monthly,without closing it.

Yes, in sure. I finally had a chance to call this morning and due to the "new" hours. I have to call Monday morning.
Thank you for your opinions and help

 

[MrsPete]

They stated the reason to keep it open, is it will hurt my credit severely if I closed it.

First thought: Who's "they"? I think you mean the credit card company -- the very people who are making money off of you. Wouldn't they say whatever's necessary to keep the money flowing in their direction?

Second thought: Just how much is "severely"? That's not a quantifiable number. Ask them -- better yet, investigate online -- exactly how much it'll hurt. If this isn't your only financial account, I suspect it'll hit your credit score, but it won't be nearly as bad as the credit card people want you to believe. Make financial decisions based upon math -- not vague descriptive words.

Final thought on the original question: Never make financial decisions based upon your credit score. Your credit score measures how well you pay your debts. It is NOT a gauge of your financial security. You could be in tremendous debt, but as long as you pay the minimum every month, you're going to have a good credit score. Case in point: years ago when we were buying a car, and we were deciding whether to pay it in cash or finance a portion ... the guys at the dealership ran our numbers, and they came back saying, "We never see this: you have not just a good credit score, but a perfect score." A couple years later, we paid off our mortgage, and our credit score dropped. Since that time, it has never been perfect again; by paying off our house /becoming MORE financially secure, our credit score dropped. It was an eye-opener for me, and it made me realize that if you're focusing on the credit score, you're taking your eyes off the real goal.

That real goal should be financial security. Live beneath your means. Constantly look for ways to lower your expenses. Put money into savings every single month. Maintain an emergency account. Work towards being debt free, including cars and your house. Create a plan for the kids' educations and funding your retirement. If you do these things, you will have REAL financial security ... and your credit score will fall into place.

But, yes, the "I love credit cards.." thread is great and has tons of useful information with many friendly people who give great advice. They will all tell you the same - pay your balance in full, otherwise the rewards game is not worth playing.

Absolutely. Never, never, never carry a balance. The cost is quite high -- typically 18-24% per year high. No, those rewards are not worthwhile if you're paying interest.

 

[3 DD love princesses]

If you can pay it off even better. If not I’d open a card that has 0% interest fee and transfer the balance.

 

[tvguy]

It will hurt your credit score for a while, but in the long run you will be better off getting your financial house in order.