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Closing Credit Cards

New Contributor

Closing Credit Cards

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.


1/1/2015 TU: 675, EP: 642, EQ: 645
TU: 638
Since:
Fingerhut $1800/ Discover It $2200/Macy's $1000/ Loft $250/ VS $250/ New York & Co $250> In Repair Mode!!!!
Message 1 of 10
9 REPLIES
Super Contributor

Re: Closing Credit Cards


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.



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

March2010 FICO® ~ 695 TU, 653 EQ, 697 EX
Message 2 of 10
Established Contributor

Re: Closing Credit Cards

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....


Starting Score: 575 (As Of Early 2011)
Current Score: TU: 767 EQ: 732 EX; 742 (As Of Feb 2012)
Goal Score: 750


Take the FICO Fitness Challenge

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Message 3 of 10
Mega Contributor

Re: Closing Credit Cards


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....


+1

 

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




EQ FICO 548 3/3/16
Message 4 of 10
New Contributor

Re: Closing Credit Cards

Yes I have other cards!


1/1/2015 TU: 675, EP: 642, EQ: 645
TU: 638
Since:
Fingerhut $1800/ Discover It $2200/Macy's $1000/ Loft $250/ VS $250/ New York & Co $250> In Repair Mode!!!!
Message 5 of 10
Valued Contributor

Re: Closing Credit Cards

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.

Message 6 of 10
Super Contributor

Re: Closing Credit Cards

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.

Message 7 of 10
Moderator Emeritus

Re: Closing Credit Cards


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.


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.

Message 8 of 10
Moderator Emeritus

Re: Closing Credit Cards


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.


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

Message 9 of 10
Highlighted
New Contributor

Re: Closing Credit Cards

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


1/1/2015 TU: 675, EP: 642, EQ: 645
TU: 638
Since:
Fingerhut $1800/ Discover It $2200/Macy's $1000/ Loft $250/ VS $250/ New York & Co $250> In Repair Mode!!!!
Message 10 of 10