Physical Address
304 North Cardinal St.
Dorchester Center, MA 02124
Physical Address
304 North Cardinal St.
Dorchester Center, MA 02124
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At O1ne Mortgage, we prioritize consumer credit and finance education. This post aims to provide an objective view to help you make the best decisions regarding credit card annual fees. For any mortgage-related needs, feel free to call us at 213-732-3074.
Credit card annual fees are typically found on premium rewards cards, travel cards, and secured cards. Some issuers may waive the fee for the first year to attract new cardholders. Generally, you will pay the fee when you first open your account and on each anniversary of your account opening. The fee may be added to your account’s balance immediately, so even if you don’t use your card for purchases, ensure you pay your bill on time to avoid late payment fees.
Paying an annual fee might be worth it if you’re earning substantial rewards, enjoying cardholder benefits, or getting other value from the card. Here are some scenarios where keeping the card makes sense:
If you’re not getting much value from the card anymore, closing it might be a better option. Consider the following:
Downgrading to a card with fewer benefits and lower fees can be a good alternative to canceling. This option has several advantages:
However, you might not keep promotional APR offers, and product changes aren’t always available. Call your card issuer to discuss your options.
Closing a credit card can impact your credit scores by changing your credit utilization ratio and credit mix, and it may affect the average age of your accounts in the future:
Keeping credit cards open is generally better for your credit scores. Downgrading or asking for a fee waiver might be a good first step. However, if saving money on annual fees is a priority, the impact on your credit could be minimal if you have other low-balance credit cards or plan to open a new one soon.
For any mortgage-related needs, call O1ne Mortgage at 213-732-3074. We’re here to help you make informed financial decisions.
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