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New Contributor
Lil_Me
Posts: 62
Registered: ‎06-30-2011

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.

BK7 - 2/2011
Since:
Kay Jeweler's $400/ Jared's $400/ HSBC Visa $300/ Credit One Visa $300/ Firestone $1000/ Von Maur Card $500/ Walmart Card (AU) $5600/ Fingerhut $500/ Discover It $200
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pizzadude
Posts: 8,117
Registered: ‎01-28-2010

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 ? 

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Frequent Contributor
Juan123
Posts: 494
Registered: ‎04-16-2011

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....


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Mega Contributor
LS2982
Posts: 15,434
Registered: ‎04-09-2011

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

 

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New Contributor
Lil_Me
Posts: 62
Registered: ‎06-30-2011

Re: Closing Credit Cards

Yes I have other cards!

BK7 - 2/2011
Since:
Kay Jeweler's $400/ Jared's $400/ HSBC Visa $300/ Credit One Visa $300/ Firestone $1000/ Von Maur Card $500/ Walmart Card (AU) $5600/ Fingerhut $500/ Discover It $200
Valued Contributor
boomhower
Posts: 1,862
Registered: ‎09-20-2011

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.

Senior Contributor
Open123
Posts: 3,849
Registered: ‎02-23-2011

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.

Moderator Emeritus
MarineVietVet
Posts: 14,084
Registered: ‎07-14-2009

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.

Moderator Emeritus
MarineVietVet
Posts: 14,084
Registered: ‎07-14-2009

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.

New Contributor
Lil_Me
Posts: 62
Registered: ‎06-30-2011

Re: Closing Credit Cards

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

BK7 - 2/2011
Since:
Kay Jeweler's $400/ Jared's $400/ HSBC Visa $300/ Credit One Visa $300/ Firestone $1000/ Von Maur Card $500/ Walmart Card (AU) $5600/ Fingerhut $500/ Discover It $200

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