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Some credit card advice?

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Established 'Hoo

Some credit card advice?

I just had a question and it seems that some of you here are pretty experienced.

 

How long should you wait before canceling a credit card you don't use? It's an AMEX with a year or 2 with history, but it has that annual fee I don't want to pay any more. I have a better card I've been using lately (for travel miles) and haven't touched the AMEX since. Should I close the AMEX and open another card (with no annual fee) and use that to continue to build credit via multiple cards?

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Mail Pro All-Star

Re: Some credit card advice?

@MarMor

 

Closing a credit card can cause a hit on your credit rating, as can the hard hit of applying for a new card.  However it makes little sense to pay either higher than normal interest rates or an annual fee if you have decent credit.

 

I'd suggest waiting until the annual fee will come due, then calling AMEX to see if they would consider removing the fee and upgrading the card.

 

If not then confirm the balance on the card is zero and ask them to close the card at your request.

If an answer helps you please give a kudo.
If it solves a problem please accept it as "Accepted Solution".
3 REPLIES
Mail Pro All-Star

Re: Some credit card advice?

@MarMor

 

Closing a credit card can cause a hit on your credit rating, as can the hard hit of applying for a new card.  However it makes little sense to pay either higher than normal interest rates or an annual fee if you have decent credit.

 

I'd suggest waiting until the annual fee will come due, then calling AMEX to see if they would consider removing the fee and upgrading the card.

 

If not then confirm the balance on the card is zero and ask them to close the card at your request.

If an answer helps you please give a kudo.
If it solves a problem please accept it as "Accepted Solution".
Established 'Hoo

Re: Some credit card advice?

Good call. It definitely doesn't have a balance.

 

Ty @okietom!

Pro 'Hoo

Re: Some credit card advice?

Hmmm tuff one. I would keep the card only if your planning in the future for a vacation. You also need rainy day money so keep that in mind if you dont have funds in a savings account. The APR is another factor; how high is it? If it's too high then close the account...you dont want to spend then years paying off a debt you could pay sooner by having a lower APR.