Affects of card being closed...

[BrandonP]

I have (had) a Sony Financial Sercvies card through HSBC and just recently was notified that HSBC will be dropping Sony. Basically my account will be closed once I pay down my balance, correct? I only owe $60.00 and what really sucks is that I just got a CLI from 1500 to 4700. I think they did it knowing the card would be cancelled!

I'm wondering, if from a score standpoint, should I just pay the minimum for 4-5 months to prolong the closing of the card? I'm mostly worried about my UTL getting jacked up. Or should I just say ef it and pay them off?

[Madison]

What is the APR Interest they are charging you? If it is over 10% I would pay it off and apply for another type of credit card. You might as well bite the bullet. The sooner you replace it, the sooner you can boost your credit score.

[BrandonP]

Well I already have 8 cards including this one, so I don't intend to app for anything else. I just financed a newer vehicle and got pounded with inqs.

The apr is high at 12% or so. Its more about losing the CL more than anything.

[Junejer]

Hi Brandon, with the balance that you are carrying, I wouldn't worry about the APR. Heck, if the APR was 30% the monthly finance charge is $1.50. I would pay the minimum, if they are going to close it when it hits $0. What is your overall util? Also, as Madison states, try to replace that CL ASAP, but definitely before the card closes, if you are in a bad overall util position.

[BrandonP]

My util is at 40%, (i know) and if I lose this cl i'll go up to 45%. I'm a little leary of opening another card right now. I have 3 accounts under a year old. What might I look for with my current scores? Right now I have a BofA Visa, BofA Amex, Amex Blue, Fred Myers Jewelers, Sears store card, and a Home Depot card.

[Junejer]

That move in util won't cause a score drop. It did not go over the 50% threshold.

[Anonymous]

Yes, you should pay it off and let it close.  Otherwise, you could get hit by a bus, end up in the hospital and the account will R9. 

Strike early.  Strike often.

-Leggo

Message Edited by leggo on 11-21-2008 06:24 PM

[Junejer]

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leggo wrote:

Yes, you should pay it off and let it close.  Otherwise, you could get hit by a bus, end up in the hospital and the account will R9. 

Strike early.  Strike often.

-Leggo

Message Edited by leggo on 11-21-2008 06:24 PM

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Um, if OP catches "Mack Truck Syndrome" I think that the least of his problems will be a $60 account balance going R9. There are obviously many higher balances that will go R9 as well.

Message Edited by ByrdMan on 11-21-2008 09:34 PM

[BrandonP]

LOL...thanks guys, hopefully I don't get hit by bus. I'm going to pay em off today. Thanks.

[Anonymous]

be see if the current cards that you have are willing to give you CLI's with soft hits versus the hard stuff.  If you can figure out a way to get 4700 in credit from your other cards you could keep your util down.

Good Luck!

TheTaxMan