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Consider an Affinity Visa Card
Ready to make a change for the better? Affinity's Visa® cards have what every member should expect: low rates, no gimmicks, no annual fees and programs designed to meet your unique needs.
Keep or Cancel?
Find out what to do if you've experienced a rate increase on your other cards
We're Here to Help!
If you've experienced a credit card rate increase, would like tips on making wise decisions about using credit cards, or if you would like to review and understand your credit report, contact us:
For general advice, call our BALANCE service at 888.456.2227. Our counselors can also set up an appointment for a full consultation.
For an in-person, pro-active approach towards enhancing your credit score, set up an appointment with an Affinity BASES coach online or call 800.325.0808 ext. 3753.
Have your other credit card rates increased? Your first instinct might be to "opt out" of the increase. Did you know that in most cases that will result in the company closing your account? Use this information to help you decide if you should keep or cancel you card account!
Step One: Call your credit card provider
- Ask why the rate increased
- What are your options?
- Can the interest rate be lowered or negotiated?
- Find out if other fees have been added
Step Two: Evaluate your credit report
To consider:- Your long-standing credit history. Your credit history is worth approximately 15% of your credit score. Closing the oldest credit card can cause a reduction of approximately 5-10 basis points from your credit score. If the card does not have a long history in relation to other cards on your credit report, closing it may not affect your score.
- Your total available credit. Closing accounts lowers your total available credit, which could in turn lower your credit score. If you are looking to open up new credit in the future, this could greatly affect your eligibility.
It's important to note, keep your credit card balances below 50% of your total card limits. If your balances exceed 50% on any card, your credit score will be affected.
Step Three: Assess fees
If you decide to keep your card, use it minimally to keep it active. Be aware of any potential fees associated with minimal use or periods of inactivity, not carrying a balance, balances less than a certain threshold, etc. These need to be factored into your decision to keep or close the account. If you do keep the account open, you'll know what you need to do to minimize any fees.
Step Four: Select a new card
If you decide to cancel your existing card and would like to get a new one:- Choose a card that is a good fit with your spending profile and offers the most value. Lower rate cards are great if you like the option of carrying a balance. Rewards cards offer added value in the form of travel points, gifts, cash back, but carry a higher APR. Consider an Affinity Visa® card.
- Consider applying for another card before canceling a credit account so that your credit score remains the same during the approval process.
- If you are approved for a new card, ask for the maximum credit limit. This will benefit your credit score.
