Closing Credit Cards

[Lil_Me]

I need some help, I have an Orchard Bank account that I would like to close, but I still have a balance. Will that hurt me in any way? I just don't want to close them and still pay for them to one day send it to a collection company or something and say that I am not paying for it.

[pizzadude]

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@Lil_Me wrote:

I need some help, I have an Orchard Bank account that I would like to close, but I still have a balance. Will that hurt me in any way? I just don't want to close them and still pay for them to one day send it to a collection company or something and say that I am not paying for it.

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Are you closing it so that you don't have to pay an annual fee ?   Do you have any other open credit cards ? 

[Juan123]

well if you close it, they'll ask you to pay the balance in full... i'd suggest getting the money to take it to a 0 balance then close the account....

[LS2982]

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@Juan123 wrote:

well if you close it, they'll ask you to pay the balance in full... i'd suggest getting the money to take it to a 0 balance then close the account....

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+1

I like to say goodbye forever once that phone hangs up!!

[Lil_Me]

Yes I have other cards!

[boomhower]

As long as you continue you to pay it as agreed there will be no negative on the tradeline.  However it will show maxed usage on your score until it's payed off.  I had a similar experience with a Chase card.

[Open123]

Can you transfer the remaining balance to another card, or pay it off?

I'd do that before closing the card to ensure it properly reports "closed at consumer's request" with a 0 balance.

[MarineVietVet]

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@boomhower wrote:

As long as you continue you to pay it as agreed there will be no negative on the tradeline.  However it will show maxed usage on your score until it's payed off.  I had a similar experience with a Chase card.

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Not necessarily. Only if both the credit limit and balance are reporting will a closed account be factored into utilization.

You can read more about the subject here: Closing Credit Cards.

[MarineVietVet]

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@Open123 wrote:

Can you transfer the remaining balance to another card, or pay it off?

I'd do that before closing the card to ensure it properly reports "closed at consumer's request" with a 0 balance.

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It doesn't matter whether it is closed by the consumer or the creditor. Either of these notations looks the same on reports.

[Lil_Me]

Thank you everyone for all your help, so far everything is looking good.