Cancelled a Card

**McD** · 03-24-2010, 10:13 AM

I had a credit card that has had a zero balance for well over 4 years. I never put anything on it because they kept increasing the interest rate. I didn't ever close it, however, because it's my oldest card and I didn't want it to hurt my credit score.

Well Monday I got a notice in the mail that because my credit limit was so high (12,900--but they gave me that, I originally had a 500$ credit limit and I never asked them to increase it), they were going to start charging a 45$ annual fee.

So Tuesday, I called and stated that I would like to cancel the card due to the annual fee, the ridiculous apr (29.99% when I have a high credit score, yeah whatever jerks), and the lack of use.

The credit card rep says, "Oh but you can reject the changes, have no annual fee and keep the card open." I pointed out that I will still have the ridiculous apr and would rather just close it.

Credit card Rep gets savvy and throws out a statistic from USAToday about the damage closing your oldest credit card will have on your credit score. I waffled for about 2 seconds and then said, "I have no plans to incur any new consumer debt, thus a temporary decrease in my credit score will not matter. I would prefer to close the card!"

And the whole time I was thinking that Greebo would be proud of me. It floored me though, when she threw out the statistic. They are getting wise in their attempts to keep people.

**Libby** · 03-24-2010, 10:14 AM

OMG KUDOS to you McD for putting the sassy customer service rep in their place

And good for you, getting rid of excess potential debt...can you smell it? Enjoy the freedom!

**JanieD** · 03-24-2010, 10:58 AM

Good for you! These companies think we are willing to accept whatever terms they throw at us to avoid hurting our credit score. At least most of us at FV are aware of this issue & aren't as easily frighted by this possibility. I think its sad that credit works this way & it can feels like a no win situtation. Can you imagine how many keep their cards when this information is thrown at them by the savvy rep? I'm glad their didn't pressure you into keeping their card!

**Mom2-3** · 03-24-2010, 11:31 AM

DH and I recently closed 4 of our cards. We weren't sure we were going to get hit with an inactivity fee and we never used them. The same type of conversation happened. They tried really hard to keep us "because we are good customers" Um, yeah, no thanks, you can keep the card and I want a letter stating that I (the consumer) closed the account with a zero balance!

Congrats on sticking to your guns! I found it fun to say I don't need more debt!!

**Samigirl** · 03-24-2010, 11:46 AM

Yay...way to go!

**Luv2BeFrugal** · 03-24-2010, 12:16 PM

Great job! And I love that you were thinking that Greebo would be proud! I've done that before, too! I wonder who else here has Greebo "guiding" frugal financial decisions from afar?

hehehe

**Greebo** · 03-24-2010, 12:24 PM

Virtual high five, MrsMcD!

**frugalfriend** · 03-24-2010, 01:16 PM

Originally Posted by MrsMcDowell

"I have no plans to incur any new consumer debt, thus a temporary decrease in my credit score will not matter. I would prefer to close the card!"

Originally Posted by Mom2-3

I found it fun to say I don't need more debt!!

That's awesome!!

High fivin' you, too!

**DaughterOfErin** · 03-24-2010, 01:21 PM

A lot of them are pulling that now.

BTW Which one of the snakes was this that did this to you?

**Russ** · 03-24-2010, 01:28 PM

Way to go MrsMcD!

Frugal Villagers >

The credit card companies>

**mamamia** · 03-24-2010, 02:12 PM

LOVE, LOVE, LOVE it! Nice to hear you put your FV smarts to good use!

Double that high-5 from me!

Theresa

**frugal is fun** · 03-24-2010, 04:23 PM

Way to Go MrsMcD!

I did something very similar today.

I closed two bank accounts. My ex husband and I kept our joint accounts open after we got divorced with the thinking that maybe someday we would put the support payments in there to use for anytime our son needed something. Well we never did that so the accounts have been sitting inactive for almost two years. Checking had a balance of $50 and savings had a balance of $100.

I just got a notice that I would be charged $5 a month for each inactive account. Sorry but you're not getting my $5 a month so I closed both accounts and transfered the $150 to savings.

**frugalfranny** · 03-24-2010, 07:48 PM

Way to go!!!

But.......I gotta ask too.......WHO was it? WHICH BANK?

PLEASE tell us........

We have to keep track of the snakes that slither amongst us!!!

I keep expecting something on some of mine...but so far...nothing. Had one closed for inactivity about a year ago.

**Palooka** · 03-24-2010, 11:51 PM

Good job. Curious too about what bank.

**Mom2-3** · 03-25-2010, 01:26 AM

I did a Chase, Bank of America, Target visa and an Amex. Not one of them was going to charge any fees (that we knew of) but we just wanted them gone!

We still have a few left and I know our scores took a hit, but we have no debt (except mortgage) and felt it was the best decision.