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Valued Member
Posts: 25
Registered: ‎05-12-2008
0

Closing an account with a balance, question...

So BoA wants to jack my rate up from 24% to 28%, even though I've never made a late payment to them.  I plan to call and whine, but if that doesn't work out I plan to "reject" the APR increase in accordance with their terms and conditions. 
 
This means I could stay at 24%, but I couldn't use my card anymore.  Which is fine by me, since it's been shredded to teeny tiny pieces for over 4 months, with no plans for any future use!  :smileyvery-happy: 
 
However, how is this scored for FICO?  I have a balance of $8k (and dropping fast!) on a $10k CL.  I plan to have it paid off by next June. 
 
Is the account status considered "CLOSED" after I reject the APR increase, or will it be after the I pay it fully off??? 
 
I'm planning on buying a house, with a FHA backed loan, next February.  My target is to have the best possible FICO and lowest possible UTI at that point.  Any ideas on what this would do to me? Should I suck up the 28% if I have to, to keep the card in an open status?
 
Thanks for any input!!
-RT
Moderator Emeritus
Posts: 9,252
Registered: ‎03-19-2007
0

Re: Closing an account with a balance, question...

The closed account will count in Utilization (both bad and good) until the balance is zero-
 
Even 24% is an outragious APR -

RandomTroubles wrote:
So BoA wants to jack my rate up from 24% to 28%, even though I've never made a late payment to them.  I plan to call and whine, but if that doesn't work out I plan to "reject" the APR increase in accordance with their terms and conditions. 
 
This means I could stay at 24%, but I couldn't use my card anymore.  Which is fine by me, since it's been shredded to teeny tiny pieces for over 4 months, with no plans for any future use!  :smileyvery-happy: 
 
However, how is this scored for FICO?  I have a balance of $8k (and dropping fast!) on a $10k CL.  I plan to have it paid off by next June. 
 
Is the account status considered "CLOSED" after I reject the APR increase, or will it be after the I pay it fully off??? 
 
I'm planning on buying a house, with a FHA backed loan, next February.  My target is to have the best possible FICO and lowest possible UTI at that point.  Any ideas on what this would do to me? Should I suck up the 28% if I have to, to keep the card in an open status?
 
Thanks for any input!!
-RT



Established Contributor
Posts: 660
Registered: ‎09-11-2007
0

Re: Closing an account with a balance, question...

Random - personally, I would try to leave the card open, pay off this balance as soon as possible.  But keep it open, as it will help your score long term if you can leave it open.
Valued Contributor
Posts: 1,291
Registered: ‎02-26-2008
0

Re: Closing an account with a balance, question...

The consensus with BoA is that if you reject the terms change, they don't actually close your card, but if you ever use it again, the terms change will immediately go into effect.
Valued Member
Posts: 25
Registered: ‎05-12-2008
0

Re: Closing an account with a balance, question...

Okay, that's what I thought, but I wasn't sure.  So I'll just freeze the card, get the balance to $0, and see if they want to "revisit" the issue at that point. :smileywink:
 
Thanks!!
 
-RT

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