Considering closing oldest card due to monthly membership fee

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thegameksk
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Considering closing oldest card due to monthly membership fee

Postby thegameksk » Tue Aug 19, 2014 9:12 pm

Hi. I have a capital one card. Ive had it since I was 18 and I am now 30. They charge me a $5.00 monthly membership fee. This is a card I dont use and has a low limit. I asked them to either upgrade the card to a no fee card or waive the fee. They refused both. Now I want to close it. How much of a hit would I take on my score? Should I close it?


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otter
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Postby otter » Tue Aug 19, 2014 9:24 pm

thegameksk wrote:Hi. I have a capital one card. Ive had it since I was 18 and I am now 30. They charge me a $5.00 monthly membership fee. This is a card I dont use and has a low limit. I asked them to either upgrade the card to a no fee card or waive the fee. They refused both. Now I want to close it. How much of a hit would I take on my score? Should I close it?


Close it and don't look back...
In my Wallet:
  • Amex PRG NPSL[3-14, bd 91]
  • Sallie Mae MC $8000[1-14]
  • Chase Freedom $4700[1-14]
  • Discover It $2750[8-13]
  • BoA UCF Alumni Cash Rewards $5000 [3-15]
Sometimes in my Wallet:
  • GM BuyPower WEMC $5000[9-14]
  • Wells Fargo Propel 365 Amex $7000[4-14]
  • Barclaycard Arrival WEMC $7000[3-14]
  • BoA Better Balance $3000[2-15]
In my sockdrawer: Amex BCE $1000[10-13, bd 91], OCCU Duck $10000 [11-13], The Sportsman's Guide Visa $8000[8-14], Chase Slate $4000 [9-14]Delta Gold Amex $2000 [2-15 bd 91], Diners Club MC $20000 [10-14] Commerce Bank Visa $2000 [3-15] Citi Double Cash $1000 [3-15]
Total CL: $90450

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PlyrStar93
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Postby PlyrStar93 » Tue Aug 19, 2014 9:33 pm

In short term it does not affect your score very much.

Only your total CL my drop by a little bit; AAoA is not affected at the time you close the account and it stays on report for 10 years.

If you have other cards then you don't need to worry about closing this one.
Citi Forward Visa $5000 10/2012 | American Express Blue Cash Everyday $8000 2/2014 | Discover it $7000 5/2014
Chase Freedom Visa Signature $7000 6/2014 | Citi ThankYou Premier Visa Signature $5000 1/2015
All EMV.

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Vattené
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Postby Vattené » Tue Aug 19, 2014 11:15 pm

Whatever the drop in your score turns out to be, I can't imagine avoiding it would be worth $5.00 a month.
-Vattené
FICO-8:
EX - 809 (11/16) | TU - 803 (11/16)
Primary Cards:
American Express EveryDay - $20,000 (10/14)
Discover it - $23,000 (2/14)
AU on Barclay Sallie Mae - $10,000 (8/15)
plus several store accounts of varying usefulness now

MemberSince99
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Postby MemberSince99 » Wed Aug 20, 2014 6:46 am

I've just gotta ask because curious minds want to know - has it EVER, as in EVER in the 12 years you've had it, given you a CLI? My guess is since you said it has a "low limit" no, but I'm curious.


I would make sure I had a better replacement, and as soon as I did, that card would be gone. Trust me they will be happy to see you close it, they were always thrilled to close the cards I had with them - I'd call and tell them to close and 5 seconds later "It is now closed thank you very much sir please destroy all copies of the card and cancel recurring charges on it, have a nice day!". None of this sissy trying to persuade me to leave it open, or even asking why I was closing it, nope just get er done! I would have thought they got a bonus for people closing cards they seemed so happy to do it, protecting themselves from the potential liability of 500 bucks. You will make their day as well as yours by closing that thing.

takeshi
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Postby takeshi » Wed Aug 20, 2014 8:10 am

thegameksk wrote:Now I want to close it. How much of a hit would I take on my score? Should I close it?

Immediate impact would be due to the change to your utilization. AAoA isn't affected until the closed account falls off your reports years later. If it is a low limit card it sounds like the impact would probably be minimal. We can't tell you what the change to your score would be but you can do the math to determine how closing the card would impact your utilization to aid you in your decision making. I doubt I'd keep a $5/month card unless it offered some amazing advantages but it's ultimately your call to make.

thegameksk
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Postby thegameksk » Wed Aug 20, 2014 2:21 pm

MemberSince99 wrote:I've just gotta ask because curious minds want to know - has it EVER, as in EVER in the 12 years you've had it, given you a CLI? My guess is since you said it has a "low limit" no, but I'm curious.


I would make sure I had a better replacement, and as soon as I did, that card would be gone. Trust me they will be happy to see you close it, they were always thrilled to close the cards I had with them - I'd call and tell them to close and 5 seconds later "It is now closed thank you very much sir please destroy all copies of the card and cancel recurring charges on it, have a nice day!". None of this sissy trying to persuade me to leave it open, or even asking why I was closing it, nope just get er done! I would have thought they got a bonus for people closing cards they seemed so happy to do it, protecting themselves from the potential liability of 500 bucks. You will make their day as well as yours by closing that thing.



The only increase they gave me was last year when I opened a banking account and checking account with them. It went from 500 to 1100. I have plenty of better cards to use that actually give me ponts, lower interest rates, etc. Im going to close it. This card has no benefits at all.

MemberSince99
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Postby MemberSince99 » Wed Aug 20, 2014 2:57 pm

Wow. 5 dollars a month for that? You are getting bent over I agree with closing it. Good for you.

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CarefulBuilder14
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Postby CarefulBuilder14 » Wed Aug 20, 2014 3:08 pm

For a card that is 12 years old, those terms are simply outrageous. You're right to close it. By the time the payment history on it eventually falls off your credit report, your other cards will have aged nicely to make up for the lost entry.
Love: IHG, Platinum, Sallie Mae, AA Plat, CSP
Like: Discover, ED, BCE, Hyatt, Arrival, Freedom
Might drop: BrooksBros, Prestige (Costco PC?)
Might add: Proper business card, CSR, Ritz, Delta Gold
Letting new accounts cool off since May
Really not sure what I'll add next or when

popamode72
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Postby popamode72 » Wed Aug 20, 2014 3:23 pm

That card sounds horrible. Since you have better cards now, just close it as soon as you can and move on.
Macy's TLs (21k), Lowes (17k), CSP (10k), Sam's Club (10k), Nordstrom (5k), AARP (4.2k), Freedom (3k), Discover (1.5k), Quicksilver (2k), BoA (3k), Barclaycard Arrival (2.5k), Amazon Store (6k), Paypal (4.9k), Sam's Club MC (3.6k), Walmart MC (1.2k)



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