Fee to close credit card?
Fee to close credit card?
Has anyone heard of this? An article in today's WSJ warns about it. I rarely close cards but have never experienced this, nor recall seeing it in any disclosures with new cards.
Re: Fee to close credit card?
I have not seen this before. Unless the card has annual fee, one may as well kept it.
-
- Posts: 617
- Joined: Sun Aug 23, 2015 8:28 am
Re: Fee to close credit card?
Never heard of it as I would think if you are not using it, it would be in their best interest to have you close it...
Is it happening to you? What card?
Is it happening to you? What card?
Twitter: @JAXbogleheads |
EM: JAXbogleheads@gmail.com
- SmileyFace
- Posts: 9084
- Joined: Wed Feb 19, 2014 9:11 am
Re: Fee to close credit card?
Did the article mention a particular bank?
It's not in the credit card agreement for any cards I have so I am clear. I could see some of the rewards cards adding this to discourage churning (maybe have a fee if the card where to be canceled within 12 months of opening since many of us do so before the annual fee kicks in).
It's not in the credit card agreement for any cards I have so I am clear. I could see some of the rewards cards adding this to discourage churning (maybe have a fee if the card where to be canceled within 12 months of opening since many of us do so before the annual fee kicks in).
Re: Fee to close credit card?
Never heard of it either. I wonder if some specialized business type cards may have such fees?WolfgangPauli wrote:Never heard of it as I would think if you are not using it, it would be in their best interest to have you close it...
Is it happening to you? What card?
Re: Fee to close credit card?
It's definitely not in the bank's best interest for you to close the card. If you close it they can no longer make money off of you/that card.WolfgangPauli wrote:Never heard of it as I would think if you are not using it, it would be in their best interest to have you close it...
That's why they make you jump through hoops to close a card: can't do it online, can't do it automated on phone, speak to an operator, that operator transfers you to better sales person, who is empowered with greater incentives to grant you.
Re: Fee to close credit card?
No, it was pretty cryptic: "Closure fees: Some cards will charge you to close your card. Fees can vary by card."DaftInvestor wrote:Did the article mention a particular bank?
Here's the full article link (paywall): https://www.wsj.com/articles/how-to-han ... 1494601273
Re: Fee to close credit card?
AMEX does automated on the phone card canceling. Did one last night and was really surprised. No transfer to sales person.gr7070 wrote:It's definitely not in the bank's best interest for you to close the card. If you close it they can no longer make money off of you/that card.WolfgangPauli wrote:Never heard of it as I would think if you are not using it, it would be in their best interest to have you close it...
That's why they make you jump through hoops to close a card: can't do it online, can't do it automated on phone, speak to an operator, that operator transfers you to better sales person, who is empowered with greater incentives to grant you.
- Earl Lemongrab
- Posts: 7270
- Joined: Tue Jun 10, 2014 1:14 am
Re: Fee to close credit card?
But it costs them money to maintain the account. I have had a number of cards over the years that I stopped using and were subsequently closed by the issuer.gr7070 wrote:It's definitely not in the bank's best interest for you to close the card. If you close it they can no longer make money off of you/that card.
Re: Fee to close credit card?
I have closed many accounts and have never been charged a fee. If they did, I would just leave the account open, put the card in a drawer and not use it.
Re: Fee to close credit card?
Apparently some credit cards have fees to close an account IF it still has a balance, but I can't even identify any specific card that does so.
Re: Fee to close credit card?
Sure, after a long time they determine you're unlikely to use it again, as thus reluctantly let it go. But they wait forever hoping you will.Earl Lemongrab wrote:But it costs them money to maintain the account. I have had a number of cards over the years that I stopped using and were subsequently closed by the issuer.gr7070 wrote:It's definitely not in the bank's best interest for you to close the card. If you close it they can no longer make money off of you/that card.
Do you disagree? Why do they wait years before closing?
Re: Fee to close credit card?
Sure, after a long time they determine you're unlikely to use it again, as thus reluctantly let it go. But they wait forever hoping you will.Earl Lemongrab wrote:But it costs them money to maintain the account. I have had a number of cards over the years that I stopped using and were subsequently closed by the issuer.gr7070 wrote:It's definitely not in the bank's best interest for you to close the card. If you close it they can no longer make money off of you/that card.
Do you disagree? Why do they wait years before closing?
- Earl Lemongrab
- Posts: 7270
- Joined: Tue Jun 10, 2014 1:14 am
Re: Fee to close credit card?
I don't know how to answer the question. I think you believe you are disagreeing with me, but you are agreeing. After a time they will make a financial determination that the account is not worth it. I don't personally know what that time period is. Some people have reported a year without activity, but I think personal experience is longer.gr7070 wrote:Sure, after a long time they determine you're unlikely to use it again, as thus reluctantly let it go. But they wait forever hoping you will.Earl Lemongrab wrote:But it costs them money to maintain the account. I have had a number of cards over the years that I stopped using and were subsequently closed by the issuer.gr7070 wrote:It's definitely not in the bank's best interest for you to close the card. If you close it they can no longer make money off of you/that card.
Do you disagree? Why do they wait years before closing?
-
- Posts: 295
- Joined: Sat Oct 25, 2014 6:46 pm
Re: Fee to close credit card?
My preferred method for closing a CC is to wait for a change in terms and then calling the 800 number to opt out. If you do this, the CC can never be resurrected -- its like driving a stake through a vampire.
Re: Fee to close credit card?
I think you are both right!!gr7070 wrote:Sure, after a long time they determine you're unlikely to use it again, as thus reluctantly let it go. But they wait forever hoping you will.Earl Lemongrab wrote:But it costs them money to maintain the account. I have had a number of cards over the years that I stopped using and were subsequently closed by the issuer.gr7070 wrote:It's definitely not in the bank's best interest for you to close the card. If you close it they can no longer make money off of you/that card.
Do you disagree? Why do they wait years before closing?