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Closing Annual Fee Card effect.
About 1 year ago I started to rebuild my credit history. After Many Many years of not watching my credit ... like at all I got my first Credit Card. Because according to CK my score was only in low 500s and after I created account on CK I got an invite from CreditOne Bank.I thought of getting secured credit card at that time so getting CreditOne Bank letter was Right on time because it was around $300 for secured card vs $75 for CreditOne.

11 Months has passed. Since then I have Capital One MC and Capital One Visa card with 5K and 5.2 K , then I managed to get Citi Double Cash 5K and Chase Slate 1K. And Latest 2 cards that I just got is a GM card with 2K and Amex Blue with 2K as well.

Other than CapitalOne MC with 39$ annual, all other cards are no annual fee cards. So with that I have to thank CreditOne Bank for kick starting my credit but just like all good things it must come to the end. I no longer need this card anymore and I want to get rid of it.
At the moment balance is -.56 (They owe me 56C) and my question is this.

By closing this one card how bad it will reflect on my credit if any ? I understand my overall credit file will be shorter and my longer credit line will be around 10 months vs 1 year with this card, but I think they measure average time with credit cards not with specific one anyway.

So yeah there it is. Can / should I close it ? Cause if I don't, they'll charge me $75 annual fee (I think 12 even payments of 7 something for my next year)

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I don't need to read the entire post to tell you, YES close Credit One as fast as you can dial the phone. Make sure its closed, once you are sure it's been closed? Call them and check it again, write down any confirmation numbers. I would still suggest anyone go Secured card route rather than Credit One, at very least, you can get your deposit back.


As far for the scoring goes, I wouldn't give it a second thought. You probably won't see any drop in scores, even if it drops few points? it's still worth just to get Credit One out. In FICO scoring models? They use both open and closed account in calculating your age/average of credit, and closed account in good standing can remain on your report for 10 years, so your age of credit won't change for next 10 years.


With Cap1 you can ask them if they willing do a Product Change from QS1 to QS (no annual fee) or ask if they can waive the fee.

Top Contributor
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First, I would ask the lender

to change the account to a no fee account.  If they refuse then close it, It the long run you'll be better off. Unless your applying for new credit line soon, the dip in your score if any won't matter much.

Good luck

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