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Time Frame for paying off closed CC's

Regular Contributor

Time Frame for paying off closed CC's

Is there a specific time frame to pay off a closed credit card? I read a post somewhere that said this person had until a certain date to pay off his balance, I have a Chase CC that was closed in July of this year that I am carrying a balance on, I have just been paying minimum payments because it was my lowest interest rate card, now I'm wondering if I shouldn't just pay it off. Any thoughts?
Message 1 of 10
9 REPLIES
Senior Contributor

Re: Time Frame for paying off closed CC's


Cyrion wrote:
Is there a specific time frame to pay off a closed credit card? I read a post somewhere that said this person had until a certain date to pay off his balance, I have a Chase CC that was closed in July of this year that I am carrying a balance on, I have just been paying minimum payments because it was my lowest interest rate card, now I'm wondering if I shouldn't just pay it off. Any thoughts?

 

There is no such time limit. Chase in particular will be perfectly happy as long as you continue to keep the account in good standing by making timely regular payments. As long as you satisfy the T&C for the account you will be fine.
Message 2 of 10
Moderator Emeritus

Re: Time Frame for paying off closed CC's


Cyrion wrote:
Is there a specific time frame to pay off a closed credit card? I read a post somewhere that said this person had until a certain date to pay off his balance, I have a Chase CC that was closed in July of this year that I am carrying a balance on, I have just been paying minimum payments because it was my lowest interest rate card, now I'm wondering if I shouldn't just pay it off. Any thoughts?

Chase is very happy that you continue to give them interest. Pay it off as quickly as possible.  IMO

 

 

(myfico)
7/09 TU-742 EQ- 779
8/09 TU-765 EQ- 783
9/09 EX pulled by lender 802

 

CC interest free as of 8/09
Time can heal all wounds and a low FICO.
"Hello my name is Sandy and I'm a recovering crediholic".

Message 3 of 10
Senior Contributor

Re: Time Frame for paying off closed CC's

If it is your obligation with the lowest APR pay it off last!
Message 4 of 10
Regular Contributor

Re: Time Frame for paying off closed CC's

Thanks for the info, I have two other cards I'm carrying balances on and the Chase card has half the rate of those, so that's why I'm paying the minimum on it Smiley Happy
Message 5 of 10
Senior Contributor

Re: Time Frame for paying off closed CC's

re:  mnthly payment

always pay more than min., even on the lower apr balance.

DCU EQ 5.0, Citi EQ 08 Bankcard, PenFed EX NG2
EX 08: AFCU, Amex, Chase, PSECU EX 98(?)
TU 08: Barclays, Discover
Message 6 of 10
Regular Contributor

Re: Time Frame for paying off closed CC's

Normally I have always done that, but the last few months I haven't with them. Actually that brings up a a question, everyone always says you should always pay more than the minimum, is there really something to this? Is it looked upon more favorably by the CCCs?
Message 7 of 10
Senior Contributor

Re: Time Frame for paying off closed CC's


Cyrion wrote:
Normally I have always done that, but the last few months I haven't with them. Actually that brings up a a question, everyone always says you should always pay more than the minimum, is there really something to this? Is it looked upon more favorably by the CCCs?

 

It very much matters. Strength of payment is a very important factor issuers evaluate when reviewing your account. Many of those who have recently had AA imposed upon them had been skating by on minimum payments. Some issuers consider paying an average of 6% of balance over a rolling six month to be excellent and grade down from there. You should be striving to make payments equal to at least 5% of the balance if you are going to revolve and want to minimize the chance of AA.
Message 8 of 10
Super Contributor

Re: Time Frame for paying off closed CC's


creditwherecreditisdue wrote:

Cyrion wrote:
Normally I have always done that, but the last few months I haven't with them. Actually that brings up a a question, everyone always says you should always pay more than the minimum, is there really something to this? Is it looked upon more favorably by the CCCs?

 

It very much matters. Strength of payment is a very important factor issuers evaluate when reviewing your account. Many of those who have recently had AA imposed upon them had been skating by on minimum payments. Some issuers consider paying an average of 6% of balance over a rolling six month to be excellent and grade down from there. You should be striving to make payments equal to at least 5% of the balance if you are going to revolve and want to minimize the chance of AA.

+1

Message 9 of 10
Highlighted
Senior Contributor

Re: Time Frame for paying off closed CC's

Your payment terms are the same when closed, as when open, if you did not default.  If they just did a "changed our mind" closure, then the utilization remains the same and you can payoff at the rate and terms while closed same as open.  Only real difference is you can't charge anything new.  Once you pay the balance off, then the card CL will be removed from your utilization calcs.

 

 

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09/03/2009 TU: 777, EQ: 776 ($8 balance on an account dropped me out of 780's)
03/28/2009 TU: 814, EQ: 810, EX: 781 (02/12/2009)
05/18/2005 TU: 563, EQ: 580, EX: 549
Message 10 of 10