Credit Card Dilemma

I have two credit cards: A Chase Freedom (1% cash back plus quarterly 5% bonus categories) and a CapitalOne Rewards (1% cash back with 50% bonus on rewards at the end of the year).  The latter has a $39 annual fee while the former has no fees.

My CapitalOne card is approaching 1 year of activity (Chase only 5 months).  One July 27 I earn a 50% bonus on my cash back and on July 31 I will be charged the $39 fee.  I called CapitalOne yesterday to try to get my fee waived and they wouldn’t do it.

I am positive I can get another card that does not have an annual fee and gives 1.5% cash back without having to deal with the yearly bonus.

My plan

  • Apply my bonuses on the 27th.  Call them again on the 27th and tell them I am about to cancel unless they waive the fee.

If they waive it then, perfect.  I don’t have to worry about things for at least a year.

However, if they don’t, I see a decision between two options:

  1. Take the fee.  Keep the card which is my oldest credit card (1 year) and safely get my bonus rewards.
  2. Say “see ya.”  I’m worried that my rewards will not get applied since they say it could take 1-2 billing cycles, though.  My rewards are nearly $200.  I’d have to be careful to not say “see ya” and lose my rewards.

In option #2 I would apply for the new credit card and life would be good and without annual fees.  I take a hit on my average age of lines of credit, but a minor one I think.  I have to be careful about losing those rewards obviously too.

Ugh.  CapitalOne, you are not making me a happy customer.  Any thoughts or recommendations?



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One Response to Credit Card Dilemma

  1. Thomas says:

    I don’t know what to say. I have been with CapOne for years now and dont have the annual fee maybe its just the card I have. But I also never worry about cash backs and bonus. I think I would stick with keeping the card open since you have had it for at least a year. I don’t like having more than 2 cards open.

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