text: closing my credit card? i have a credit card right now and no balance at all (clean) - but it has an annual fee (bank of america). bank of america upgraded my credit card with no annual fee just few days ago (but i never activated it yet). but then, i just received a better offer from another credit company. my question is: if i close my bank of america credit card with annual fee, it will be negative on my credit points? i just paid my annual fee 3 months ago and i'm still using my old boa credit card. so if i close my boa card, i have to pay for my 3 months of usage instead of 12 months? thanks! the previous answers are good.    your credit does take a dip when you cancel your credit card.  it removes part of your "credit history" and increases your debt/credit ratio.  these two items make up a large part of your credit score.  i would suggest contacting boa.  you said you got a better offer from another company?  ask boa to match it, or else you will not do business with them.  if they don't remove the annual fee then definately cancel the card and take the momentary hit to your credit report.  i think annual fees are a scam anyway.