- Centurion Member
- Posts: 1157
- Joined: Sun Jan 26, 2014 3:55 am
- Location: US
I say dump it. Normally I'd recommend keeping a card open when you're building if it's not costing you anything and you don't mind monitoring its activity for fraud. Closing an account does come down to personal preferences, but to me it's not worth paying for a horrible credit card just for scoring purposes.
It sounds like you don't anticipate any immediate credit needs. If you're not planning on financing a car or getting a mortgage soon, then you don't need to scrape for every FICO point you can get in the short term but can instead focus on positioning yourself well in the long term. Takeshi pointed out there will be a hit to your score because of utilization (closing this card will reduce your overall credit limit, so the ratio of outstanding credit card balances to the total limit will increase), but a closed account and its positive payment history will stay on your credit report for years. To improve your credit score in the long term, open a new account or two now so they can start aging and reflecting good payment histories.
Others have posted on the forum in the past about that weird credit line hold. It is something only the lowest quality lenders do. Reputable lenders won't hold your credit line after the payment has processed; Amex, by contrast, releases it the second you hit the "submit payment" button.
If your credit is decent (no derogatory marks or at least very few late payments showing), then there are a ton of credit card options out there that won't play games with you and won't cost anything (or will have an annual fee that is compensated by perks/rewards, if you're interested in that). Since it's costing you money and you have no use for it, get rid of First Premier and don't look back!
EX - 809 (11/16) | TU - 803 (11/16)
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