Hello all good landlords.

Years back I bought a shack with a credit card. I've done this numerous times and refinanced after seasoning. This particular shack set me back $35,000.

At the time the credit card had a 38,000 limit. I let the credit card be the mortgage.

Worked out very well.

I still have the credit card but don't use it. My credit is good.

However over the years the card limit is being reduced. I just opened the statement and they have assessed a $95 annual fee.

I noticed the credit line is now only $7,500. Paying $95 to have access to $7,500?

Seems ill advised to cancel a long time credit card but what is the point?

Should I send this card out to pasture?

Or you could ask for a credit limit increase.

I have several credit cards with an annual fee. For this fee I get curtain perks. Such as:

a) extends warranty coverage on major appliances --

b) Easy to put in a claim

c) Lower interest rates

d) When I travel I can use the credit card to get emergency money at a minimum fee, limited to a $10 fee.

These credit cards with annual fees have a credit limit minimum of $35,000 minimum and some have a $100,000 limit.

Does that annual fee get you something valuable? Like, an annual complimentary hotel stay? Or access to a particular set of perks at the airport?

Otherwise, the only time I've ever paid a fee for a card is when I was trying to build independent credit history. I'd always been an authorized user on DH's cards, but didn't realize I wasn't developing my own independent credit history. It was also when the CARD Act first came out, and before it was toggled to be friendlier to SAH's. If anything happened to him or us, I didn't want to be in need of credit and not be able to get it-- so I spent a few years with a $39/year Capital One Quicksilver, then upgraded it to the free version, and used the good history with that to get an assortment of other starter cards. Then I used those to get some better ones--- but not such good ones that I'm expected to pay triple or quadruple digits/year for the privilege of carrying one. :P

No black cards in my wallet. ;)

Hmmm, I never thought to ask whether there were some perks I was missing.

I'll have a conversation with the card, I'm ready to bid it fare well. I have had it for a long time - In certain circles that fact may make me out to be a fool.

I bet they wave the fee, however I'm still thinking $7,500 is really not worth the bother.

Almost no card issues will waive an annual fee any more -- even for long-term customers. As a guy that deals with a lot of credit cards (and have flown free probably 25 times in the past 7 years because of it), way too much of the system is automated now and customer service reps have very little power to waive annual fees. There may be exceptions for smaller, local-bank cards. But anything worth doing from Chase and the bigger boys are no longer waiving fees in most cases.

Exactly which card is it, Smoke? Let us know and I can tell you if it is worth holding onto or not.

Also, I can tell you if it might have a non-annual-fee equivalent that they will let you switch it to without closing the account. That saves the (fairly minor) hit on your credit score also.

- John...

Ooo--- that's a great idea, John.

Thanks John. (And everyone)

I was aware that they can switch me to another program and perhaps I'll do that. I'm trying to break the feeling I have of holding onto something that I've had so long.....I'm showing loyalty to a bank which I know is not helping me

yet....I stay a customer?

So, it says--

Every calendar year you make $30,000 in purchases on your British Airways Visa Signature card, you will earn a Travel Together Ticket good for two years.*Same page link to Offer Details Redeem your Avios for one reward seat for yourself and use your Travel Together Ticket to bring a companion in the same cabin, even first class (taxes, fees and carrier charges apply).

Were you redeeming the perk before, when you'd put a $35k house on it?

It's easier to put a major purchase on a $38k card, and it's harder to get $30k of spend on a $7500 card.

Smok,

AS I WAS TAUGHT...closing a credit card account temporarily (90? days) reduces your credit score. Seems odd but perhaps the CHANGE alerts the algorithms. So don't disturb your score if asking for a new loan.

Cutting up the card is not enough, must contact the provider and close the account.

Our age is showing. We were raised that loyalty was honorable. No more. The company has shown you THEY are not loyal to you.

Shop around. We use a card with airline miles to fly my kids home.

I'm using Lowes for a contrctor discount and HD & Menards cards for rebates. Worth more than a few airline tickets.

BRAD

Ok, so, a few things...

1. Probably not worth it to try to get the spend-$30,000+ bonus with that card unless you have some very special and expensive flight plan where it makes sense to get the single-use companion pass. If you have that kind of spend to put on a card, there are better deals to do instead.

2. Chase DOES have a no-annual-fee version of that card. It isn't published/advertised, but it exists. So, it might be worth a call to see if they can convert you to that card. That card doesn't offer as many Avios per dollar and doesn't have the spent-$30k deal, but allows you to keep the card at no cost.

3. Note that BA Avios points can be used for American Airlines flights. I have about 200,000 Avios points from the card signups years ago and I just keep them around for a rainy day when I need an American Airlines flight instead of my usual Southwest (where, again, I fly for free and have done so for many years now).

- John...

PMH: I specifically mentioned that I was talking about "Chase and the bigger boys." I actually still don't consider AMEX to be a "bigger boy." They are still fighting just to be accepted at many locations. They still HAVE to waive fees to keep people from dropping them like flies.

Getting an annual fee waived by AMEX doesn't count for much, in my book, sorry. :)

- John...

That's fine. To those of us that deal with credit card specials and deals like me, we still consider AMEX to be closer to Discover (which, I'll say, is pretty low) than to a VISA or MC.

It might be popular overseas. That's great for you. Most of us aren't charging stuff in Cairo...

Thanks for the discussion.

I called, I was told

Will not transfer to another program when BA is involved.

Will not credit annual fee,

I have been a frequent flyer since 1999. (Must of flown home from Prince's New Year's eve bash or something).

I'm afraid all I can do is call in one more time, and if i don't get better answers...Goodbye card.

Sad,

I used to owe -$990,000 and change. Currently Quicken shows -$182,217.30 Maybe it is time to realize I probably don't need the credit cards like I used to.

Some points expire, some do not. They generally do not make them really difficult to use. Again, I've flown dozens of times over the past 5-7 years -- all for free (well, $5.60/flight for the required federal tax) -- because of Southwest credit cards. (Southwest points do not expire.)

I also have about 250,000 American Airlines points and 200,000 British Airways points that have been sitting for years until I need them. (These you keep from expiring by just earning or spending at least 1 point every 12-18 months.)

- John...

On a side note, Delta miles do not expire. They stopped expiring them back in 2011. So, if yours expired, then that means it has been quite a while since you looked into these sorts of deals. It's been at least a decade for you. It might be time to re-visit them! :) There are some good deals to be had with credit card bonus signups.

Besides the flights mentioned above, we've also vacationed in Aruba twice (flights and hotel both free), Bahamas once (flights, hotel, and access to Atlantis water park all free), and then many domestic trips with flights and hotel all free just for whatever (went to a few of my Scouts weddings across the USA and so on).

Don't get me wrong -- I could afford them if I wanted to. But it is just so dang fun for me to fly and stay for free all the time. :)

- John...

Thanks John,

So, the key for the best bonuses isn't necessarily ongoing earnings, but the signup bonuses. So, for example, if you want to fly and have a Southwest airport nearby, then I think the Southwest cards are one of the best options -- as you can get 40,000-60,000 points for signing up if you spend $1000-$3000 in the first 3-4 months (depending on the offer).

After you meet that initial spend and get the bonus, then you might not use that card as your "daily driver" because there might be a better choice for ongoing bonuses, discounts, or incentives (like those you mentioned).

- John...

Again, that sounds great. But lots of other folks do enjoy those perks and signups and free flights and hotels.

Also, to note it, as an admitted guy that has done a LOT of this, I only have 3 credit cards in my wallet. My main Southwest card for personal expenses. My business Southwest card for business expenses. And a spare personal card that I never use just in case something goes wrong with Chase. (I was once buying multiple $500 Disney gift cards at Meijer to pay for our DVC maintenance fees and Chase locked the account because several $500 purchases in a row looked odd to them.)

So, just because I do credit card deals does NOT mean that I have 50 credit cards or something. Again, I have less than you in my wallet... And I'm still flying for free for the last 7 years. :)

- John...