Credit Card Debt Help The Annual Fee

I don't care about interest rates, because I intend to pay the card fully every month. I am someone with "no credit," because I have never believed in debt, and I am not eligible for unsecured cards. I am starting to realize that I have to build some credit in order to one day buy a house. I have plenty of money to (modestly but comfortably) live on and don't actually need to borrow. I just don't want to pay a lot of money for the privelege (?!) of having a secured card.

The best secured credit card for people with no credit is the Classic MasterCard from Orchard Bank. They are the leader in providing credit card for those with no or bad credit.

2008-05-19 17:32:19 by Tea for the Tillerman

People who are struggling to repay debts could benefit from a new type of card being launched. Clydesdale and Yorkshire Bank is introducing a Gold ...

I have a credit card that I have used several times this year. I hadn't always paid the debt of in full, but I have paid equal to or more the minimum as required on time. I eventually paid my balance of in full in May 2009 leaving myself with a zero balance on my credit card. In June, I was surprised to find that my credit card statement billed me $75 for an annual fee; I paid this in full on time, leaving me with a zero balance. I haven't used the card since May, and I have just received a new statement for $75 for another annual fee!
When I browsed my statement history it clearly shows there hasn't been any activity on my card since May, and there aren't any missed or late payments.
Is this illegal an illegal business practice? I'll be contacting my bank tomorrow, but I just wondered what you think!?

Thankyou!

An annual fee is charged by some cards. The fee is just for the privilege of having the card in your wallet.

The thing that surprises me is that you are getting another annual fee this soon. The annual fee should be charged only once each year. You need to ask the company about that. However, if your agreement calls for an annual fee, you need to pay it or close the account.

2009-08-02 19:09:51 by Nilda v

I am working diligently to pay off my debt. I currently have 6 credit cards and one Auto Loan opened in 3/2007
Capital One opened in 5/2004
Chase opened in 4/2005
Capital One opened in 7/2005
Bank of American opened in 7/2005
DMB/ HSBC opened in 7/2006
GAP 4/2008 Opened without permission- have since canceled

The one I need to close is DMB/HSBC. I have two years good history with them, and it is my highest credit limit but it is RIDICULOUS to pay $59 a year to maintain this card with no rewards. Is canceling the card going to hurt my credit score terribly?

All cards are paid before their due date and also atleast a few dollars over the minimum payment.
Please note: I am not able to pay off this card right now. I will be closing to get the Annual Fee credited back to the account. I will be working harder at getting it paid off shortly following.

There comes a time when FICO scores really don't matter. Scores change as we go through life. Scores only matter if you are applying for new credit, auto loan or mortgage. If you're not applying, then worry about a score should not be on your mind!
Definately lose the $59 card. It is not helping you better your life, so you don't need it. Use only cards that benefit you.

Your next oldest card is in 2005. That's only one year difference.

FICO scores go up as you pay off the debt.
Closing that account will not affect you as much as you think. You already have 24 months of credit history.
You're paying them off. This alone is a huge step in raising your score, so keep up the good work.

2008-08-29 14:08:49 by sharkbait8574

I sooo wanna to close my credit cards that charge these annual fees, but that won't be healthy for my credit (report). I asked for a waiver but that will be for this year only. These are debt-free cards, I want to close them the next time they charge me annual fees...Any suggestions?

There are a lot of "normal" cards out there without an annual fee. Look at the American Express Blue for instance. With this one you can even have cash back or points for every dollar spent.

2007-11-09 08:55:21 by stilettochronicles

I've paid off all my debts on my credit cards but I've been told not to close any of them as I'm trying to re-build my credit. But is it worth keeping them open if they charge an Annual Fee? How much damage to my credit score will occurr if I choose to to close an account rather than pay $59-$79/yr?

Ok, first let me tell you what makes up your score:

1. Payment history- 35%
2. Total debt owed vs. available credit- 30%
3. Length of time establishing credit- 15%
4. Types of credit established- 10%
5. Inquiries and New accounts- 10%

Whenever you close accounts, you affect #1,#2, & #3. The payment history for all your open accounts are shortened, you decrease the amount of available credit making it look like you owe more than you're able to borrow, and finally if the account was opened a while you shorten the average age of all your accounts. As for the annual fee. you can work this to your advantage. One option would be to use it as a leverage piece to close the account. Request to be changed to a card without a fee in exchange for you keeping the card. If that option doesn't work, then instead of using the card lightly to show activity every month, just make minimum payments on the anuual fee until it's paid, then spend no more than $20/ month on the card. That way, you can still show activity on the card without having use the card a whole lot to build credit.

2007-08-08 09:10:38 by Steelers_Rule