I was a three days late with a payment last month and Chase sent a letter stating that my rate(2.99 for the life of the balance) will be raised to prime plus 12.99 effective in April. I know this is policy and it is completely my fault that I was late. I think they are just trying to get my rate raised before the CARD act goes into effect in Feb. Anyway, the letter also stated that if I reject the terms my account will be closed and I must pay all outstanding balances on the account according to my current terms(when I called to verify what they meant by this they said the 2.99%). So my question is....how much will it hurt my credit report to have them close my account? I would love to be able to keep paying it off with the low rate but I am also afraid if they list my card in default or something it will cause other cards to raise my rate. Any opinions or advice would be greatly appreciated!
It won't matter at all whether it says closed by you or them.The account will continue to report for up to 10 years after closing if it's in good standing.
A lot of people have opted out in these instances. They can't report your account in default because it's not.
If that makes the most sense for you, there's nothing wrong with opting out.