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Posted in Credit Cards
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Question By
monkeybear87

3 Contributions
1 Person Helped
Should I close a credit card with an annual fee?
I have a secured card with a high annual feel, and high APR. I've used it to help rebuild my credit (but I also settled any debts and had the, removed). I have several other cards now, but they're store cards. Does this matter? I don't want to keep this card any longer, because I don't want to pay the annual fee. Will it hurt my credit if I do?

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Top Contributor
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If your Close the Credit Card with the annual fee it will change 2 things.  Your Average Age of Accounts will get shorter based on how old the account is and Credit Utilization will go up based on how much of a Credit Limit you will lose.    You need to do some math to find out if you are ok with that.

As for the Store Cards I have 10 different store cards with my oldest being JCP that is over 21 years old.   And yes they matter

So your question is will it hurt your credit if you close the account,  Yes,  by how much we don't know.  The more more accounts your have the less impact it would be, so lets say your had 10 accounts in total that are open and out close 1,  it would have a impact on your credit but not as much if you have 4 credit cards and close one of them as it would have a much bigger impact.

hope that helps out.

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