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Posted in Credit Cards
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Question By
Hberney

2 Contributions
25 People Helped
Secured Cards with Annual Fees; When to close?
I purchased the Opensky Secured card two years ago with a 300$ limit and 50$ annual fee. Suddenly I find I don't need to use it anymore with having unsecured credit cards at a much higher available balance. Ideally I could just put it away in a lockbox and not worry about it however that 300$ is real cash, my cash, and the company policy is to eat away at the balance for each annual fee. If I close it my money should be refunded or I could lose all of it if I just let the card sit open.

I see three options--- 1) close it now and get my deposit back, 2) keep it open for the score only and lose the deposit[ possibly pay more] and 3) wait til just before next years renewal to close it with less impact?

Opinions? [fyi: My average account age is 2 is just over 2 years (oldest 10+) with 4-5 active lines]

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Top Contributor
5038 Contributions
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Even if you close it, it will still factor into your average age of accounts unless the creditor gets angry that you close it and removes it from your reports (that shouldn't happen). As long as you have other active lines it should help minimize the damage of closing the line. You will likely see a slight score ding, but probably worth it to get your money back and save $50 a year into the future.

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