Why PIF before closing a credit a card?

mesoc · ‎04-05-2008

I see this statement made everyday since i joined up on these forums, you should pay off your credit card before closing it. I closed my first premier credit card 2 months ago with a balance of $140. I got it down to $95, and sent off a check for the remaining balance just a few days ago.

What do I need to watch out for?

modernsurrender · ‎04-05-2008

Interest and monthly maintenance fees for closed accounts would be the first two things to come to my mind.

Edited because for the life of me I can never spell maintenance right...

Message Edited by modernsurrender on 04-05-2008 04:28 PM

Start 2/2008: TU 495 || EX 539 || EQ 528
Now 5/2013: TU 716 || EX ??? || EQ 702

Slate: $5000 Simplicity: $5000 David's Bridal: $3500 SW Chase: $3000 FNBO: $3000 Barclay NFL: $2500 BofA: $2400 Discover IT: $1700 Walmart: $1500 Victoria's Secret: $1000 Cap1: $750 Amex Zync: NPSL
(2 derogs to go until I'm squeaky clean in 2014!)

Anonymous · ‎04-05-2008

If you still have a balance it will be factored in to your utilization but I don't think the credit line will be making your util go up