Balance on card about to close?

[snowkitty]

I have the Sam's Discover card that is supposed to turn into a Sam's Mastercard in June (I hear). I financed a TV on the card last year and am paying 100.00 a month on it. So in June, I will still owe 200.00. When they close the discover, will it 0 the balance out or will I be showing that 200.00 balance due forever? I've never been in this situation before and need to know if I should just pay it off. Thanks!

[tcbofade]

If they are converting your card from one to the other, they will transfer the balance.

If you are closing one to obtain the other, it will close with a $200 balance, but they'll send you a monthly statement with the same minimum payments, apr, fees and such that you've been paying all along.

[Kenny]

They're aware of the payments and such, but the question is this: Wil it show as owing a $200 balance for the extra 10 years after it's closed. I would just tend to pay it off to avoid all of the worry, myself.

I don't know.. I've not been in a situation like this before either.

I'm sorry! I wish I had an answer.

[tcbofade]

I'm sorry that I wasn't more clear.

NO, it will not show you owing a balance forever.  (Assuming you pay it responsibly as you have been.)

Whether an account is open or closed, the current balance will report to the CRA's.

If you (or the lender) close an account that you owe $200 on, it will report as a closed account with a balance of $200....on THAT month only.  Next month, after you've made a $50 payment, the account will report as a closed account with a $150 balance, and will update every statement date just like it does with an open account.

When you pay it to zero, it will report zero.

Hope this helps.

[Creditaddict]

I don't believe you will see a closed account at all... it's still with same lender, they are just moving discover to MC... the only reason I could think of old closing out and new opening is because the account number probably has to change becasuse of discover starts different then mastercard but otherwise it would report $0 and the balance will report to the new account.

[Kenny]

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@tcbofade wrote:

I'm sorry that I wasn't more clear.

NO, it will not show you owing a balance forever.  (Assuming you pay it responsibly as you have been.)

Whether an account is open or closed, the current balance will report to the CRA's.

If you (or the lender) close an account that you owe $200 on, it will report as a closed account with a balance of $200....on THAT month only.  Next month, after you've made a $50 payment, the account will report as a closed account with a $150 balance, and will update every statement date just like it does with an open account.

When you pay it to zero, it will report zero.

Hope this helps.

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Well, that is very nice to know! I guess you could always pester Sam's to update if they don't as well. Thanks for the useful info! Now I know.

[tcbofade]

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@Creditaddict wrote:

I don't believe you will see a closed account at all... it's still with same lender, they are just moving discover to MC... the only reason I could think of old closing out and new opening is because the account number probably has to change becasuse of discover starts different then mastercard but otherwise it would report $0 and the balance will report to the new account.

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That is what I expect as well, but either way, OP is fine and has nothing to worry about.

[snowkitty]

Thanks for the info. I've never had a card switch over like this before. I've read that the discover will close and a new tradeline will be opened for the MC. I can pay the balance off, I just didn't want to because I really only use the Sams Card to finance big purchases with the 0% interest deals. By paying monthly, it shows usage and I keep getting nice cli's with them. I just didn't want it to look like the discover closed with a balance owed.