Credit Advice

Save the money.  You should base the closing of this card on how much available credit you have.  If you have two other credit cards then you will take a small hit.

I did the same thing with a card (its limit was cut from $1K to $300). I was angry and told them if they didn't raise the limit back up, then I would close the card. They basically said "fine" and I closed it. My credit score went down a little, because it was one of my older cards. If you've only had it 6 months however, you shouldn't see any effect at all from letting it go. In fact, if your average age of lines is > 6 months and you have a good amount of open credit, you might see your score go up! The deciding factor is that you have an annual fee. Get rid of that junk before any annual fee gets charged again. You might want to wait until a month or two before the annual fee is due to cancel, just to get the most from it. Good luck! Nathan

Thanks for all the responses! Very Helpful. I was actually thinking the same as nathan.

it would depend on how long you have held the card. it may not affect your credit utiliation score, but, it could easily affect your average age of open accounts which would lower your score...  also, you have 3 credit scores, one from each bureau, not just one.