UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev Thread | Prev | Next | Next Thread
Author: Patzer Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 309094  
Subject: Re: Drop one card, open a better one? Date: 8/29/2013 4:01 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 4
My dad has a Key Bank credit card at 12.99% that charges him a $50 fee every year. He hasn't used it in a few years and it's been at $0 balance all that time. I've contacted them (with his permission) to see if they can lower the interest rate, but they say no.

If he always pays the balance in full, the interest rate is irrelevant. However, . . .

There's no point in him paying $50 a year for something he doesn't use. He does have a couple of other cards.

That's the heart of the matter. If he really doesn't use the card with the annual fee, he should cancel it to get rid of the fee. If he uses it for purchases, but always pays the bill in full, he should think about whether he can do what he needs to do with another card that doesn't have an annual fee. Absent some really appealing features on the $50 per year card, the answer will be that his other cards are just as good and he should cancel the one with the annual fee.

(I'm guessing you're going to tell me to ditch the whole plan.)

I'm telling you to ditch the plan of negotiating for interest rates on a zero balance. The effective way to negotiate for a zero annual fee is to cancel any card that has a non-zero annual fee* and get some other card that doesn't have a fee. I did that decades ago because of a $12 annual fee, and never looked back.


* This assumes the card does not give him other compensation that is of more value than the fee. For example, various people have reported having air miles cards with an annual fee, but getting a companion ticket once per year that saves them more than the cost of the fee.
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev Thread | Prev | Next | Next Thread


TMF Credit Center
The Motley Fool Credit Center arms you with real tools and simple messages, that will help you in every credit situation.
Foolanthropy 2014!
By working with young, first-time moms, Nurse-Family Partnership is able to truly change lives – for generations to come.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Value Hounds

Waiting for Clarity
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.