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KimberlyScott
Graceyn=My World <3
Member since 10/08 4173 total posts
Name:
Kimberly
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CC's now charging an annual fee
A lot of my cc companies raised the interest which sux, I just won't use them but, I just got 2 notices in the mail that another 2 companies are now charging an annual fee. I want to cancel but, won't that hurt my credit?
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Posted 11/11/09 5:27 PM  |
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annoyedTTCer
LIF Adult
Member since 4/09 3272 total posts
Name:
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Re: CC's now charging an annual fee
All the changes are thanks to the laws that kick in starting 2/2010
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| Posted 11/11/09 5:28 PM |
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JenMarie
One day at a time
Member since 11/07 7397 total posts
Name:
Jennifer
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Re: CC's now charging an annual fee
You're going to see the CC companies pull a lot of crap over the next few months. The PP is right - it's due to the new CARD Act going into effect in February. CC companies are raising rates, slashing credit lines, and beginning to charge annual fees. This is because effective in February they won't be able to easily raise your rate, so they need to find new ways to make money and have to get them implemented before the Act goes into effect.
Closing a credit card can affect your credit score. It increases your debt to credit ratio. It also impacts your credit history in terms of how long you've had credit. If it's a new card and you have no debt, it shouldn't really affect your score.
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| Posted 11/11/09 9:27 PM |
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babyfaith
Onward and Upward!
Member since 2/08 3210 total posts
Name:
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Re: CC's now charging an annual fee
I had 2 cards with zero balances closed out by my CC company for no reason at all. Beware CC holders, they are up to no good right now.
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| Posted 11/12/09 9:59 AM |
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Nifheim
allo
Member since 1/09 5476 total posts
Name:
Jennifer
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Re: CC's now charging an annual fee
i don't get how closing a CC can affect your credit score in a negative way. I know it does but never made sense to me. Because I think hey your closing this account so therefore you can't charge which means you can't get into debt.
I closed out out a few CC accounts before we went for our mortgage, it seemed to have no affect on my rating at all. I plan on opening a lowes and home depot account this weekend since i need them now otherwise I just have my other store cards and my amex.
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| Posted 11/12/09 10:23 AM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: CC's now charging an annual fee
Posted by annoyedTTCer
All the changes are thanks to the laws that kick in starting 2/2010
Yup. I was so against Obama's new credit card laws where all my friends were for them.
I took a ton of heat when I said that this stupid government was taking away one of the bank's primary sources of PROFIT. It's bad enough that the banks are in trouble, yet Obama felt it was necessary to punish the banks and make their balance sheets look even worse. Everyone I mentioned this to laughed at me saying the banks deserve it.
So now because of this... the banks are countering by whacking everybody with an annual fee on many cards.
I am going to have a close a bunch of my unused cards which is going to worsen my debt to credit limit ratio.
Thanks Obama! 
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| Posted 11/12/09 11:17 AM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: CC's now charging an annual fee
Posted by Nifheim
i don't get how closing a CC can affect your credit score in a negative way. I know it does but never made sense to me. Because I think hey your closing this account so therefore you can't charge which means you can't get into debt.
It doesn't necessarially hurt your score unless you are carrying debt.
If you are carrying debt, closing cards reduces your total available credit which would increase your debt to credit ratio. This lowers your score.
Even if you have no debt, closing cards can affect your ability to get NEW credit.
I have a number of credit cards with 40k limits or higher. I like this because if I apply for new credit, I look like a very worthy customer. The bank I am applying credit for will look at my report and see that I have super high limits with other banks. The bank realizes that I must be pretty credit worthy to have these kinds of limits.
Your credit worthiness is not just about your credit score anymore. My friend just got denied a car loan from Bethpage FCU, and he has an 800 credit score with no delinquencies! So they look at other things besides your score now and I know for a fact they like to see high available credit.
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| Posted 11/12/09 11:21 AM |
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yourenotme
LIF Infant
Member since 7/09 98 total posts
Name:
mary
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Re: CC's now charging an annual fee
Posted by annoyedTTCer
All the changes are thanks to the laws that kick in starting 2/2010
these laws needed to begin as soon as they were passed. it didnt take a genius to figure out that the banks were going to stick it to the consumer any way they could before they took effect. anyone should have been able to see this coming from a mile away. idiots in congress! im grateful every day that i dont have any credit cards and have to deal with this.
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| Posted 11/12/09 12:47 PM |
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annoyedTTCer
LIF Adult
Member since 4/09 3272 total posts
Name:
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Re: CC's now charging an annual fee
Posted by yourenotme
Posted by annoyedTTCer
All the changes are thanks to the laws that kick in starting 2/2010
these laws needed to begin as soon as they were passed. it didnt take a genius to figure out that the banks were going to stick it to the consumer any way they could before they took effect. anyone should have been able to see this coming from a mile away. idiots in congress! im grateful every day that i dont have any credit cards and have to deal with this.
The idiots in congress are in bed with bank lobbyists, you really expect them to care about us over campaign donations?
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| Posted 11/12/09 12:50 PM |
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CookiePuss
Cake from Outer Space!
Member since 5/05 14021 total posts
Name:
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Re: CC's now charging an annual fee
Posted by yourenotme
Posted by annoyedTTCer
All the changes are thanks to the laws that kick in starting 2/2010
these laws needed to begin as soon as they were passed. it didnt take a genius to figure out that the banks were going to stick it to the consumer any way they could before they took effect. anyone should have been able to see this coming from a mile away. idiots in congress! im grateful every day that i dont have any credit cards and have to deal with this.
They knew EXACTLY what would happen...exactly. There were no missteps.
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| Posted 11/12/09 3:21 PM |
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Erica
LIF Adult
Member since 5/05 11767 total posts
Name:
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Re: CC's now charging an annual fee
We are spoiled...CCs used to all have annual fees.
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| Posted 11/12/09 4:19 PM |
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