Closing credit card with balance

Can you close a credit card with a balance? Do you have to work out a payment plan to do that or do they just continue to bill you as usual until it's paid off? Does it affect your credit score at all?

I know they say you "should" leave CC's open after paying them off but honestly it makes me nervous. DH has been the victim of CC fraud in the past. I want to keep two cards...one that I have had for almost 10 years and one that he has had for 7 years.

We don't use credit cards anymore for anything and have very low balances on them. I think it is a crock that you should leave them open for credit purposes.

Re: Closing credit card with balance

not sure what you mean - the card would have to be kept open until you pay it off i would think? they're not going to let you close an account with a balance on it

I don't agree with keeping cards open with no balance on them either - once its paid off and you no longer want it, get rid of it!

Re: Closing credit card with balance

i wouldnt close any cards...

Lenders take a hard look at the ratio between the balances on your revolving accounts and your total available credit. If you do have debt, try to keep it to less than 30% of your available credit. i would keep those lines of credit open. When you close out open accounts, those credit lines are no longer factored into your ratio. Thus, your debt as a percentage of available credit will increase

15% of your credit score is determined by how long you've been borrowing. so if its an OLDER card, you may want to keep it around.

if you REALLY want or have to close an account...Specify that you want the account closed "AT THE CARDHOLDERS REQUEST."
It's a minor point, but it looks better on your credit report if the account was terminated by you and not the lender

Re: Closing credit card with balance

I always have been advised to never to close a card. I see your point though. I do know that if you have no activity at all on a card, it will be closed out for you. Which is better than you closing it. Maybe you can call the company and express your concerns. Perhaps they will give you free security moNitoring.

Re: Closing credit card with balance

Re: Closing credit card with balance

Closing it with a balance on it isn't advisable. It automatically makes your utilization 100% on that card and causes a drop in your score.

IMO, if you want to close it, close it when the balance is zero.

Re: Closing credit card with balance

i think you can arrange it so you dont charge..like they close the line of credit, but you pay it off.

Re: Closing credit card with balance

I just closed my Discover card (had an issue with them) and I couldn't until I paid off the balance.

I paid it in full every month so there wasn't an actual balance with interest, but I wasn't ready to pay it the day I called, so I ended up calling back after I paid the bill to cancel.

Re: Closing credit card with balance

say your card was lost, get a new one and don't activate it

to answer your question, you would be at the same terms your at now, just won't be able to added new purchases.

Message edited 8/30/2010 10:10:32 PM.