There’s so many credit card options out there to use that if you are paying a monthly or yearly fee for a credit card you’re throwing money down the drain. Now it’s not really recommended to simply cancel a card you’ve had for many years and open up a new one without a fee. However what you can do is call the credit card company and request that they remove the monthly/yearly fees from your account. You can negotiate with them and have them raise your interest rate if they have to. It’s likely that at the time they gave you the card you had a lower credit score than you do now, hence the reason for the monthly fees. The last thing a credit card company wants you to do is to leave them for another company, so they’re willing to negotiate if they think they’re going to lose you.
If you have a low credit score and cannot negotiate or even obtain a credit card, another option is to get a prepaid credit card. Prepaid debit cards allow you to do the same things as a credit card but without extending credit to you. Some companies even offer payday loans, in case you need some last minute cash. Prepaid credit cards do have fees involved, but are intended for people with bad credit or no access to a regular credit card.
When dealing with loans and credit cards , proper personal finance management should always be the key.
- Edwin, CashTheChecks.com
5 Comments so farThe problem is that many got those “annual fee credit cards” when they had bad credit because that’s the only type of card they could get. Now that they have good credit they risk losing points if they cancel it. Bit of a catch-22 there. So it’s a tough choice to have to make. I’d say if you are expecting to purchase a house or car in the next few months I’d keep the card and cough up the monthly/yearly fees until you feel you won’t need your credit for a while.
Comment by Newton Warner 04.27.09 @ 12:47 amPeople complain about credit card companies abusing their clientele, now it’s time to turn the tables and use them too for a change.
Comment by Jim Cowell 04.30.09 @ 8:29 pmI’m proud to say I’ve never paid a cent of interest nor yearly fees and have received rewards from my credit card like gift cards.
Comment by Jason Johnson 04.30.09 @ 8:31 pmi like bank credit cards because they are easier to get. they usually dont have good promo deals like credit cards but they know you have money to pay your bill since you have an account. I would also recomend the prepaid credit cards, they are pretty good if you have bad credit
Comment by tony 07.09.09 @ 3:40 pmLeave a comment
I agree – there are so many zero annual fee cards, I can’t imagine holding a card that had one.
Comment by Wise Finish 02.14.09 @ 11:45 am