UPDATE: How do I cancel 10 credit cards without damaging my credit score?
By Quentin Fottrell, MarketWatch
This woman spends $1,000 per year on credit-card fees
I became ill suddenly and had to retire at 62. When I was divorced at 45 I had nothing. I re-grouped, saved, saved and saved, put two children through college and rose through the ranks at work.
When I retired, I had two years of expenses in an emergency fund (it is still there), zero credit-card debt and have lived very frugally on my small pension and Social Security Insurance since then. When I was making six figures at work, I took out credit cards to get miles, rewards etc. I have quite a few. Because I am not using them, I am getting annual fees (I have about 10).
I want to cancel these accounts because I'm wasting $1,000 a year in credit cards fees, which is sinful to me. However, most people say cancelling the cards will affect my FICO score. My FICO score is 780 and the notes on the credit-card report said high limits on multiple cards is a negative. I want to cancel these cards with the high limits and save the wasted fees.
How will it really affect my FICO?