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Hello all,
Received a letter today saying my credit card will not be renewed. I know a person at the bank so called and asked and was told they are no longer offering that rewards program and lots of peoples were getting closed. Didnt know they could do that, but oh well....
My question is, what happens now that they are closing it? would they still want my monthly payments until paid off or will they want me to pay it in full? I just used the card this month for the first time in a year and now they close it, I pay it in full 90% of the time anyway, but was wondering in these situations what happens?
@jcstarkey8826 wrote:Hello all,
Received a letter today saying my credit card will not be renewed. I know a person at the bank so called and asked and was told they are no longer offering that rewards program and lots of peoples were getting closed. Didnt know they could do that, but oh well....
My question is, what happens now that they are closing it? would they still want my monthly payments until paid off or will they want me to pay it in full? I just used the card this month for the first time in a year and now they close it, I pay it in full 90% of the time anyway, but was wondering in these situations what happens?
They can close your card anytime they want, but they generally cannot do significant alterations to the payment terms, other than those allowed by the T&Cs of the card. Most likely you will have a loan at the current APR rate of the card with the same minimum payment requirement. The card will continue reporting at maximum utilization until fully paid. This part will hurt your score because as you pay down the card the limit on the card will be reduced to the new amount. Not really been in your situation myself as I have never let a closed card report a balance, but other posters here have indicated that it works this way.
ok good to know! I will pay it in full to avoid that. its not near maxed out (sig is old) but i for sure dont want it showing maxed out on my report. thanks for that info!