Close a credit account with little, no impact on score

Q. I've had my credit card for many years, and always paid on time. Now they've notified me that they'll start charging an annual fee. I'm angry -- but afraid to cancel the card because it will hurt my credit score. What should I do?
A. Your concern is understandable, since it seems the credit card companies have all the power these days, in spite of the benefits of the new Card Act, which took effect Monday. If you make the decision to close your credit card account, assuming your credit is in good standing, it might have a small impact on your credit score. But that might not be enough of an impact to cause you to hang on to the card and pay an annual fee.
There could be two consequences of closing an account. Part of your credit score is based on your length of credit. So if you've had that card for many years, closing it could ding your score about 20 to 30 points, depending on whether you have other long-held cards. Even so, your score is likely to rebound within months.
One way to protect yourself, if you are the one closing the card (instead of the issuer), is to send a registered letter to the issuer when closing the account. Then keep a copy of that letter so that if your credit score declines, you have proof you were the one who closed the account.