I have an Orchard Bank card from 7 years ago and it is my oldest revolving account. The age has helped me improve my score, but as my fixer card it came with terrible terms and not a single increase since it opened...
Now that I qualified for a Chase card with zero APR for balance transfers, I transferred the Orchard balance over to pay it down along with 2 other cards, but it still charges me a membership fee of $8 monthly, which is an annual fee increment.
With terrible APR and the acquisition by Cap One, I am very tempted to close it out. But I hear that tradelines should be kept open to help with account age and overall available credit. It is only a $400 card so I am not sure it would really matter as far as available credit (my total is 10k). My second oldest account is 1 year newer.
Feedback would be great from anyone who has seen the effects of doing this. Would my score drop for losing the age or tradeline? Is it a smart move in the long term? Can I negotiate dropping the annual fee and keeping it or does that never happen?
Depends on a couple different factors, especially with the Capital One acquisition. You could take a chance and see if you might be able to PC it to something without an AF, since they're under new management. You could also call and ask them to waive AF's every year.
That said, if you don't want to bother with that, it's probably better to shut it down and take a small hit on your score. You'll recover the hit in time, especially if you have other tradelines to make up for it.
I don't think you'll take a hit on you average age of accounts immediately because positive trade lines remain on your reports for 10 years. So if you closed it now, it would remain on your credit reports until 2022. At which point, it falling off won't hurt AAOA so much. And since it's only $400, your util shouldn't be affected too much.
Unless my math is off that is $100 per year in fees?
My vote says close it.....
It really is not worth spending out that much money for just having the $400 card.
It has served it's purpose and you have obtained a much higher standard of card with no fees.
Close it and put that $8 a month towards your new CC or get yourself a treat to reward you for getting rid of crap!
As mentioned before, the card will still factor into your score/AAoA etc for the next 10 years and by which time, you would have long forgotten about it