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Credit Card Annual Fees: When to cancel

Discussion in 'General Discussion | Credit Cards' started by hulagrrl210, Apr 22, 2011.  |  Print Topic

  1. hulagrrl210
    • Original Member

    hulagrrl210 Gold Member

    my husband and I both have signed up for some new cards this year, and I am wondering by when we have to cancel to avoid the annual fees. Is it before 1 year from when we applied for the card or before 1 year from when then card was activated? Also, any threat of losing the sign up bonuses if we cancel too soon? How long does one typically have to keep the account open to avoid the perks being taken back?
     
  2. jwsky
    • Original Member

    jwsky Silver Member

    Wait till the fee shows up on the statement and then call them. You may have to wait a month, but they will refund it.

    When you call to cancell, they may offer you something to stay or even lower or drop the fee. I had one card drop the fee if I used it five times in 90 days. Another delayed the fee 90 days to think about it and gave me a few thousand miles to help me decide. I kept it the ninety days and then dropped it anyhow. good luck!
     
  3. euromannn
    • Original Member

    euromannn Gold Member

    Anyone have options for Citi Bank and Capital One credit cards?

    Both have annual fees and I won't pay for these cards. Cap1 told me you cannot transfer it's Venture VISA card with reapplying for new credit.

    I won't do that.

    Not sure if Citi offers a transfer account.
     
  4. deant
    • Original Member

    deant Milepoint Guide

    I always cancel before one year is up. Don't want the hassle of being charged an annual fee and then trying to get a refund. As for losing the sign up bonus, Chase seems to be the only one that will try and "claw back" the points if you cancel before 6 months.
     
  5. euromannn
    • Original Member

    euromannn Gold Member

    Canceling early affects credit score........to some degree as length of accounts is lowered.
    If a bank can transfer the card account to another account without running a credit check and that has no annual fee that would be better versus canceling the card completely..

    Capital One says no option to transfer just cancel which I regretfully will do when the annual fee comes.
    Citi....still checking that out.
     
  6. deant
    • Original Member

    deant Milepoint Guide

    Actually the average age of your credit cards goes UP when you cancel a "new" card.
     
    Scottrick likes this.
  7. Simon
    • Original Member

    Simon Milepoint Guide

    That's what I've done in the past too as it saves the effort of haggling to get the annual fee back after it appears on you statement. I'd recommend this as a better idea for most that want the easy option.
     
    Scottrick likes this.
  8. Scottrick
    • Original Member

    Scottrick Gold Member

    Sometimes the fine print states that you have to remain a customer for at least 6 months. Chase especially. But the fee isn't charged until after a year. So just wait 11 months and you'll be safe no matter which card it is. I have yet to see one that requires you to hold the card for longer than 6 months, and flipping it as soon as the miles post is just going to increase the chances you're flagged for churning.
     
    hulagrrl210 likes this.
  9. jwsky
    • Original Member

    jwsky Silver Member

    I have, so far, never had to "haggle " for the fee back, The only bartering is over whether they are willing to give me something to keep me on.
     
  10. 744
    • Original Member

    744 Gold Member

    I've had success in the past calling the cc co. And telling them I have recd a better offer from another card offering no fee cards and had luck with them waiving the fee iorder to keep me as a customer.
     
    hulagrrl210 likes this.
  11. taiwaned
    • Original Member

    taiwaned Silver Member

    I had to cancel my Capital One card for this reason. They kept saying, that card is a different division to you cannot transfer.
     
  12. euromannn
    • Original Member

    euromannn Gold Member

    This is a factor to consider when opening cards:
    1. annual fee
    2. transfer account without credit check...redcues your score

    if you have to cancel that also decreses your score. I will probably cancel both CIti and Cap1 when annual fees come lowering my creditr score further.

     
  13. taiwaned
    • Original Member

    taiwaned Silver Member

    It really depends on the individual credit history. Yes it does descrease your credit score but if it is only for a few points then it is worth the hit so as not to worry about the credit card number still in play thus still be vulnerable in the event of identity theft.
     
  14. euromannn
    • Original Member

    euromannn Gold Member

    This where the comments of this board and FT differ than my experience. I opened 2 new credit cards in 2011. Excellent credit history of 812 FICO but then was lowered to Good credit with a 749 score.

    Many posters claimed their experiecne was 4-10 pt max drop. Unfortunately, it hurt my score severely.

    Thus the closing of account will hurt further and since no scientific data is available it's best to stay away from this if a high credit score is valued which it is to me.

     
  15. jwsky
    • Original Member

    jwsky Silver Member

    Have you checked your credit history with the credit agencies? It may be something else that has lowered your score. It could be a mistaken entry, Like someone claiming you did not pay a bill on time. Or any of a number of other problems or actions.
     
  16. taiwaned
    • Original Member

    taiwaned Silver Member

    I also can also speak of my personal experience, also I am Canadian (we technically do not use FICO) but we have something similar.

    When I was in my 20s and I did something similar, it had a bigger affect on my credit score. Can't remember exactly but the drop was like 40 pts.

    Did a similar thing (on the advise of FT) in my late 30s and there was no material change. Difference I can acertain is my longer work history and a longer sample of my credit worthiness. I can be totally be off on this but that is the only possible reason why there was such a huge difference. (of note, it was the same credit card company (Capital One)).
     
  17. 744
    • Original Member

    744 Gold Member

    Believe it it or not there is an algorithm and its very scientific (statistically at least) that specifically measures your credit score. Its complex, built upon a ton of variables. Avg balances, average length of debt, avg. payment, type of debt, etc etc. Its all a product of Fair Isaac and Co. (Thats where the acronym FICO comes from). They are the driving force behind calculating credit scores. I can almost compare it to no 2 snowflakes. The same goes for credit scores in that no 2 scores are ever calculated the same way because there's always some minor difference.
     
  18. euromannn
    • Original Member

    euromannn Gold Member

    I know the factors that make these issues but not the degree each has. I am reporting that the suggestions of others on the affect of opening accounts is more severe than reported.....not consistent per individual.

    My credit score correction was so severe I would not have applied if I could have predicted the =excessive drop. All I'm saying is my experience ws more severe than others.

    Alerting others.....

     
  19. Westsox
    • Original Member

    Westsox Gold Member

    I cancelled my Delta Amex Reserve card yesterday as I am not currently flying Delta and did not want to pay the "large annual fee" that was on my April statement. I made one phone call, explained why I wanted to cancel and the fee was credited back to my account this morning. I really like American Express Customer Service.
     
    PAinNY and Cholula like this.
  20. alexro

    alexro New Member

    Hello,

    I don't know if this is still active, but I'll try my luck. I recently opened a new credit card with Chase. The annual fee was $95, but it was waived for the first year. Next I added my wife as an authorized user, they mailed me her card and I activated it. The following day I see a $95 annual membership fee in my account. I don't recall being told about this fee when I activated the card, but I am not sure. Nor did I expect it as I have other cards on which my wife is an authorized user and I never had to pay a fee for that...

    Question is can I get them to cancel her card and cancel the fee even if they posted it to my account?

    Thanks!
     
    harvson3 likes this.
  21. harvson3

    harvson3 Silver Member

    Before you go and cancel the card, send Chase a secure message (while logged into your account) or a phone call asking them to clarify/explain the situation. You might point out that the fee is supposed to be waived, and could they please remove it. Their customer service is usually pretty good.

    If the problem persists, then you can decide whether to close the account.

    And welcome to Milepoint.
     
    aptraveler and wrxmom like this.

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