Author Topic: 24.24% interest credit card issue  (Read 2511 times)

arcangel911

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24.24% interest credit card issue
« on: November 21, 2014, 06:51:49 AM »
Yes, you read that right, 24.24%.

Needless to say, it will be paid off by the beginning of this year, due to things I have read on this wonderful blog and working on a mustache of my own. It has been hanging around my neck for sometime due to school expenses.

Now, the biggest question up and coming.... (insert Olympics theme...) What the hell do I do with this card? Would it be ok to cancel it? Because I am wanting to never use this card again and I do not see a use for it. I don't like paying for something I don't use and don't need.

Normally, I know people say keep the card but here's a few of the add-ons:

-Yearly fee of $60
-Been calling them several times to lower interest rate... no luck over the last few years, even tried the going higher routine...
-It's a airline mile card from many years ago... that the miles expire, and I only get a 100 miles a year without any purchases.
-No other benefits to this card
-Limit= $10,200

horsepoor

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Re: 24.24% interest credit card issue
« Reply #1 on: November 21, 2014, 07:06:08 AM »
Do you have good credit?  If so, get a new card that has rewards and no annual fee and cancel the old card unless they offer to waive the annual fee when you call to cancel.  Interest rate won't matter because you won't be carrying a balance ever again.  Right?  RIGHT??  You'll be in a stronger bargaining position once your balance is zero and you're really ready to cancel it.

LibrarIan

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Re: 24.24% interest credit card issue
« Reply #2 on: November 21, 2014, 07:11:44 AM »
If your credit score is good, go with the MMM-recommended Amex Blue Cash Preferred card. I got it at the beginning of this year and I've been quite happy. Money back on everything I buy that more than makes up for the annual fee. Once you have that card or something similar, just cancel the card you have now. Your current card sounds like a drain on your resources rather than a FIRE assistant.

RunHappy

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Re: 24.24% interest credit card issue
« Reply #3 on: November 21, 2014, 07:15:50 AM »
Get a copy of your free credit report and find out what your score it, how many lines of credit you have open and how long you've had them open. Are you planning to apply for a loan any time soon?  Basically figure out if you need to take a credit score hit, will it make much difference in your plans.

Also once you have it paid off you will be in a better negotiating position.  You might have to let it sit at a zero balance for a month or two, but then you should call them and ask for a lower interest rate and no annual fee.

I have a department store card at 24.99%, no annual fee, but at a zero balance (it always was).  I'm planning to keep it around to help rebuild my credit.  My goal is to get to the point where my credit score no longer matters, but I'm not there yet.

MustachianAccountant

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Re: 24.24% interest credit card issue
« Reply #4 on: November 21, 2014, 08:43:37 AM »
Yes, you read that right, 24.24%.

Needless to say, it will be paid off by the beginning of this year, due to things I have read on this wonderful blog and working on a mustache of my own. It has been hanging around my neck for sometime due to school expenses.

Now, the biggest question up and coming.... (insert Olympics theme...) What the hell do I do with this card? Would it be ok to cancel it? Because I am wanting to never use this card again and I do not see a use for it. I don't like paying for something I don't use and don't need.

Normally, I know people say keep the card but here's a few of the add-ons:

-Yearly fee of $60
-Been calling them several times to lower interest rate... no luck over the last few years, even tried the going higher routine...
-It's a airline mile card from many years ago... that the miles expire, and I only get a 100 miles a year without any purchases.
-No other benefits to this card
-Limit= $10,200

BEFORE YOU CANCEL THE CARD, call and see if:
1. They have a no-fee version of the card. If they do, you can "downgrade" to the no fee version, while still keeping your credit limit and credit history. Then stick the card in a drawer and forget about it.
2. If they don't have a no-fee version of the card, see if they'll do a "product change" to another of their no-fee cards.

1 and 2 allow you to keep your account, thus keeping your "average age of account" and credit limit, which are both good for your credit score. If they don't work, you have number 3:

3. Tell them that you'd like to close your account because you don't want to pay the fee. They may offer to waive the fee to get you to keep the card. This one is a pain though, because you'll end up calling every year to get the fee waived. You may just want to cancel the card if it comes to this.

These three steps don't preclude you from getting another card that better serves your purposes as well.
Oh, and you should NEVER worry about the interest rate on a credit card. You know why? Because you should NEVER EVER EVER carry a balance from month to month. ALWAYS pay off your ENTIRE bill at the end of EVERY month.
Is that enough caps for you? :-)
« Last Edit: November 21, 2014, 08:55:26 AM by MustachianAccountant »