Poll of the Day > I'm considering cancelling a credit card that I must pay an annual fee for.

(+) Yeah! (+)

It's been three months since I've opened it, and I'm worrying about how will it affect my credit score. I don't really need a second credit card at the mo', nor do I want to give my bank ninety of my American dollars every May. I don't really need it for anything other than maybe building up my credit score with lunch purchases and such. But I can already pay for my chicken musubis with cash, so there's little point in having a credit card. Additionally, my credit limit isn't really that high; and I figure that it would be more practical if I opened a credit card post-graduation after I am able to find full-time work, live on my own, and actually have bills to pay with a credit card. Anyway, what do you think I should do, board? Is paying ninety dollars in nine months worth building up my credit score during those months?

I must have these answers.
---

There is almost no reason to pay an annual fee on a card save luxury type rewards on wealth cards or for a lack of international fees if you travel abroad frequently. Otherwise, it's not worth it.

As far as your credit, closing a card doesn't damage credit. Just makes the initial hard credit pull somewhat pointless. The only way it could affect your credit.... is one of the factors that makes up your credit score is your oldest credit line. So if this was your first card and it's significantly older (5 plus years) than your next most recent line, I'd maybe reconsider. Otherwise close it.

Source: I work in sales at a major bank
---

BADoglick posted...

The only way it could affect your credit.... is one of the factors that makes up your credit score is your oldest credit line.

This is technically my only credit card; the other one I have co-signed with me mum.
---

EclairReturns posted...

BADoglick posted...

The only way it could affect your credit.... is one of the factors that makes up your credit score is your oldest credit line.

This is technically my only credit card; the other one I have co-signed with me mum.

Co signed or authorized user? Co signed means your credit report is included. Authorized user means you simply have access to the line
---

Hey everybody here is twenty reasons why I shouldnt pay for this card, should I do it?
---

Why did you get the card to begin with? Free credit cards aren't hard to get

Are the rewards worth $90 to you? If not cancel it.

Plenty of low interest free cards out there.
---

If it has an annual fee, cancel it. Cards with an annual fee are dumb and you should fee dumb for supporting it.
---

SmokeMassTree posted...

Are the rewards worth $90 to you? If not cancel it.

Plenty of low interest free cards out there.

And most of those also give rewards, without the annual fees. Only reason to keep a card with fees is if the difference between the rewards and the fees is still higher than the rewards you'd get using another (free) card
---

BADoglick posted...

authorized user

Yes.

Dikitain posted...

you should feel dumb for supporting it

I know. ><
---

Dump the commercial banks and use a non-profit credit union. They give higher interest on their checking and savings accounts and lower rates on loans and credit cards.

Mead posted...

Hey everybody here is twenty reasons why I shouldnt pay for this card, should I do it?

---