Help on what I should do on my credit situation

[svtcobra2k3]

I currently have two credit cards. AMEX and Visa. I've had the AMEX for 2 years and keep a zero balance on it, I don't want to close it since it's been my longest card I've had...but I never keep a balance on it due to my interest rate, I don't like paying interest. Luckily, there is no annual fee. Now, I have a rewards/miles VISA card which I just opened last year and now they're charging me a $50 annual fee....I thought it wouldn't be a problem, but I kinda regret getting a credit card with an annual fee, when I don't need it. I only got it for the bonus miles and 0% interest. The only problem is, on this VISA card I have an outstanding balance of $8,000 which I can't pay all off right now, but I will over the next few months. I was thinking of finding another credit card with 0% and no annual fee, that way I can transfer my balance. But will the VISA waive this $50 fee? I didn't want to call them and cancel my card because I'm afraid they will slap on some high interest or a high monthly payment which I'm tight right now for my payment to increase. What would be best to do? Sign up for another CC now with no annual fee and get the introductory 0% and then just do a balance transfer and cancel my VISA and waive the fee? Would they waive the fee if I told them that I don't want to keep the card that has an annual fee?

 

[mach1gsxr]

If it's at 0% and your only paying 50 yearly then leave it on the card. Consider it paying interest for that card at a really low rate. I wouldn't mess with transfering balance unless you had to because the interest rate was going to change or something. When transfering over a balance, they typically charge 3-5% for it and it will be more than your yearly fee.

Just my opinion.

 

[SnkBtn99]

First rule of thumb. Only have credit cards that you can pay off every month.

 

[homer302]

$50 fee and 0% = you pay interest up front before you even buy anything.

Still at 8K, I don't see a way to change now that would benefit you. The $50 is gone and that would calculate to some ridiculously low IR anyway.

 

[rotor_powerd]

You're contemplating a balance transfer over $50? $50? Really?

Dude.... you have 0% on 8 grand..... 50 bones is nothing. Just pay it, and be glad you aren't paying 20% interest like most cardholders that don't pay their balance off every month.

 

[Phallen]

Regardless, do NOT cancel any cards. Cancelling a cr card hurts your credit. If there's a zero balance, fine, but if you just can't stand the yearly fee, call them and complain about it.

If they want you to pay a $50 yearly fee, and you hadn't have a balance on your card for a long time, then you have grounds for negotiation. But if you do have a balance, just deal with it.

 

[rmk600]

^+2! Don't cancel credit cards, even more so if you have a good limit! Sit it in a drawer and leave it alone after you pay it off.. If you cancel, it hurts your debt to credit ratio which I think is 30% of your FICO score. Don't transfer a balance that big because of a $50 annual fee. That's really not that bad, especially if you use it for what it's meant to be for... air miles. And the fee for the balance transfer would be $320 if the rate was 4%. Not worth transfering. Correct me if I'm wrong on any of my numbers/facts.. haha

 

[Rush]

So am I understanding this right? You have a Visa card which you claim you don't need, yet it has an $8,000 balance? How did you rack up that much debt on a card you don't need?

 

[svtcobra2k3]

The VISA with the $8K balance had 0% for the first year (introductory rate) but now my interest will be 11.25% that's why I wanted to find another CC that gives me another 0% introductory rate for 1 year that way I can transfer my balance of $8K and continue paying it off this year with 0%. If I keep the card I have now with the annual $50 a year.... I will pay that, but then my $8K balance will have an 11.25% interest rate on it which I don't want to pay interest on. So that's why I wanted to cancel it. I only had it for 1 year so it's not like it's my longest credit. I have an AMEX which I had for 3 years with 0 balance. I don't use the VISA, I'm pretty much just paying my balance off monthly that's why I wanted to cancel it. I know cancelling cards hurts your credit but I made a mistake getting a card with an Annual fee when I should be getting cards with no annual fee that way I can keep it for 5+ years. I'm trying to find a new card with Free Balance Transfers and 0% so that way I can transfer my $8K to a new card @ 0% interest for another year. But wouldn't it be better to cancel my VISA when I only had it for 1 year instead of keeping it for 3-4 years paying the annual $50 fee and then decide I'm sick of paying the annual fee?

 

[fiveohhhstang]

I currently have two credit cards. AMEX and Visa. I've had the AMEX for 2 years and keep a zero balance on it, I don't want to close it since it's been my longest card I've had...but I never keep a balance on it due to my interest rate, I don't like paying interest. Luckily, there is no annual fee. Now, I have a rewards/miles VISA card which I just opened last year and now they're charging me a $50 annual fee....I thought it wouldn't be a problem, but I kinda regret getting a credit card with an annual fee, when I don't need it. I only got it for the bonus miles and 0% interest. The only problem is, on this VISA card I have an outstanding balance of $8,000 which I can't pay all off right now, but I will over the next few months. I was thinking of finding another credit card with 0% and no annual fee, that way I can transfer my balance. But will the VISA waive this $50 fee? I didn't want to call them and cancel my card because I'm afraid they will slap on some high interest or a high monthly payment which I'm tight right now for my payment to increase. What would be best to do? Sign up for another CC now with no annual fee and get the introductory 0% and then just do a balance transfer and cancel my VISA and waive the fee? Would they waive the fee if I told them that I don't want to keep the card that has an annual fee?

I can tell you, they won't slap on a higher interest rate if you call to cancel. I actually called to cancel my card a year ago or so and they said if I didn't cancel and kept the card they would lower my interest rate to 1.9%. Of course I kept it open to get the lower rate.

 

[svtcobra2k3]

I can tell you, they won't slap on a higher interest rate if you call to cancel. I actually called to cancel my card a year ago or so and they said if I didn't cancel and kept the card they would lower my interest rate to 1.9%. Of course I kept it open to get the lower rate.

So they negotiated with you to stay and for that they lowered the interest to 1.9%? Wow. Yeah when I first signed up for my VISA, it was an introductory 0% rate... But now the year is up and it's 11.25% that's why I wanted to find another CC where I can transfer my $8K balance and pay 0% for another year to pay it off then stay with this card and pay 11.25% + $50 Annual Fees.

 

[fiveohhhstang]

So they negotiated with you to stay and for that they lowered the interest to 1.9%? Wow. Yeah when I first signed up for my VISA, it was an introductory 0% rate... But now the year is up and it's 11.25% that's why I wanted to find another CC where I can transfer my $8K balance and pay 0% for another year to pay it off then stay with this card and pay 11.25% + $50 Annual Fees.

Yep, they did. It's worth a shot, otherwise it might be wise to try and get another card with 0% interest and just transfer the balance to give you more time to get it paid off or at least paid down.

Edit: Sometimes when they lower your interest rate it is only for future purchases. So you would still pay 11% interest on your 8,000. That is also something to check on.

 

[rmk600]

It makes sense after those last two posts... 11.25% is definitely high, really high if you have an 8k balance. I would do what you're saying and transfer the balance to a new card with 0% interest and cancel the card. If you've only had it for a year go ahead and get rid of it if you don't care about the air miles. Ohh, Citi has a couple of card you could look at. My card was 0% for the first year and 9.9% now. Not to low, but I have a pretty high limit. Good luck!

 

[svtcobra2k3]

Yeah the Citi Platinum Select MasterCard looks good with 0% on balance transfers & purchases up to 12 months.... with no annual fee. So I should just get this, do a balance transfer and cancel the annual fee VISA and I think I should be good and it shouldn't affect my debt:credit ratio. Since I'll still have 2 cards in the end. Thanks guys!

 

[jpro]

So am I understanding this right? You have a Visa card which you claim you don't need, yet it has an $8,000 balance? How did you rack up that much debt on a card you don't need?

:lol:

My thought exactly.

 

[svtcobra2k3]

:lol:

My thought exactly.

Because the only reason I got it was because it had a 0% Introductory Rate on Balance Transfers, which I transferred a balance from my Credit Union Loan.... I never use credit cards because I'm focusing on paying this off. I've had it for a year now with 0% and the year is up so now they're charging me interest and an annual fee on it. So yeah I only need it to keep 0% on my debt. I am not looking for a CC to charge things on it.

 

[STAMPEDE3]

Find another card with 0%.
Transfer balance.
Call current card company and tell them you want to cancel, when they ask why tell them that you don't want to pay $50 on a card you no longer need.

They will waive the $50 fee if you leave it open.