Ask Terry Questions Credit card not used

Credit card not used

By Terry Savage on August 09, 2021 | Credit/Debt

I had savings with Merrill Lynch. They had a credit card opened for me with bk of America with a very high credit limit. There is also a yearly fee of $125. I don’t want or need card but how can I close it without taking a hit in my credit. If I don’t use it, I will still get charged the yearly fee so it wouldn’t be considered inactive. I need advice. Thank you.

Terry Says

As long as this is not your ONLY credit card, nor your longest-held card, it won’t make much of an impact on your credit. Contact them, ask them to close it –and report it to the bureaus as closed at the request of the holder.
First, check your credit SCORE at www.CreditKarma.com or at your bank website if they offer it for free. Then check back a few months later to see the small impact.
Unless you’re about to apply for a mortgage or some other use of credit, do it right away. It makes no sense to pay that money for a card you no longer use.

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