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Question about closing CC charging me monthly fees!


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Hello and happy holiday weekend - I started off with  Credit One Bank about 5 years ago to rebuild my credit and eventually paid off two credit cards with them to a zero balance almost a year ago. They have been charging me on both cards every single month fees anywhere from $5  to $7 a month each and I called a supervisor at Credit One to say to them I do not want to pay any more fees because I paid the balances down and I haven't put $1 onto my accounts, so why should I continue to pay fees? They refuse to stop letting me be charged every month just to keep it open and I am so frustrated. I it may seem like a small amount but on both cards for almost a year now it adds up. Is there any way to close these two accounts and not do serious damage to my credit score, which is now around 730?  I have a few other cards with high credit lines of $8 to $10 k from Chase and Capital One and the two Credit One cards have around $1,500 credit line each, so I'm wondering is it safe to close them so I can avoid all of these stupid fees? Thank you so much for any help! 

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On 9/6/2021 at 5:08 AM, Bunnyrocks429 said:

Is there any way to close these two accounts and not do serious damage to my credit score, which is now around 730?  I have a few other cards with high credit lines of $8 to $10 k from Chase and Capital One and the two Credit One cards have around $1,500 credit line each, so I'm wondering is it safe to close them

"Safe" schmafe; it's actually the only smart move to make here.  Removing $1,500 of CL's when you also have $18K reporting isn't going to do appreciable damage to a 730 score.  Plus the name "CredshitOne" showing anywhere on your reports is a bad thing.  Close those accounts yesterday.

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The advice to "never" close a card is only applicable to cards for which there's no penalty in keeping them open.  Cards that impose an annual fee that were opened in order to establish initial credit should be closed as soon as you qualify for stronger no-fee cards.

 

The credit history remains intact for 10-years after closure, continuing to contribute to your average account age during that time.  And, while you lose the contribution of the existing credit limit in the calculation of over utilization, it's readily supplanted by whatever card you opened as a replacement.

 

Bottom line, you can ditch the card and in the "big picture" it won't have an adverse impact on your credit.

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8 hours ago, hdporter said:

The advice to "never" close a card is only applicable to cards for which there's no penalty in keeping them open.  Cards that impose an annual fee that were opened in order to establish initial credit should be closed as soon as you qualify for stronger no-fee cards.

To follow, NO card is worth an annual fee if you are not extracting at least the value of the fee from the card.  It is why myself and others can justify some of the cards like AMEX Plat that have fees between $400-600 per year- we get more than that out of the card in the way of various benefits. 

 

As noted in this thread, a starter card outlived its usefulness as soon as better cards have been obtained.  At that point, there is no value being extracted from the fee-laden POS. 

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On 9/6/2021 at 2:08 AM, Bunnyrocks429 said:

it may seem like a small amount

 

The amounts are obscene because you are getting nothing in return.

 

Cut them loose and don't look back.

 

Be certain that the final statement after your final payment has a $0 balance.

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