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Residual interest on Chase Freedom card?

Winchester2005
Established Member

Residual interest on Chase Freedom card?

Hello,

 

So I currently have a balance transfer in the works to transfer a balance from a Chase Freedom account to a Keybank Latitude account.

 

The statement just cut for the Freedom tonight, with a total balance of 7174. My balance transfer is for 7171 (I estimated on the total amount after the statement cuts)

 

I just scheduled a payment for the remaining 3 bucks. So, once the balance transfer occurs in about 2 business days, the balance will be exactly 0.

 

Am I correct in assuming there will be a little bit of interest that accrues this next statement date? Reason I ask is it is a joint account with my ex, and I want to close it out, but don't want it to negatively affect my credit with closing it with an outstanding balance (though it will suck closing it and hurt my AAoA, as it's my oldest card)

 

Anyway, any insight on potential for residual interest on next statement date? And, if there's residual interest or not, would there be any downside to closing it with a tiny balance (knowing that my credit will probably be knocked as its my oldest card and hurt my AAoA)

 

Thank you 

Message 1 of 9
8 REPLIES 8
M_Smart007
Epic Contributor

Re: Residual interest on Chase Freedom card?

I will let someone else answer about the residual interest question.

If the account closes, it will remain on your report for up to ten years, and thus not ding your AAoA.

 

Good Luck!

 

ETA: You would not want to close it with a balance .. IMHO

Overypay it by a few dollars, if you are not sure.

Message 2 of 9
Adkins
Mega Contributor

Re: Residual interest on Chase Freedom card?

There will be some residual interest left. Call them up and get the exact amount due, and then pay it over the phone. As @M_Smart007 mentioned, I wouldn't let it close with a balance either. 

Last HP 08-24-2021



Message 3 of 9
Mr_Mojo_Risin
Senior Contributor

Re: Residual interest on Chase Freedom card?

Your AAOA won't be affected from closing your CC. It will continue to report for up to 10 years, sometimes even longer if you're lucky.

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Message 4 of 9
fatcomic
Regular Contributor

Re: Residual interest on Chase Freedom card?

Sorry if I'm missing something as I learn something new everyday.  I didn't realize Chase allowed joint credit card accounts.  

Is your ex just an authorized user on your account?   If so, I would call Chase and have their card deactivated and even request a new card number if you think they might try to do something harmful to your credit line.    If the ex is just an AU, I would leave it open and just kick the ex off and let the account continue to age.  


Message 5 of 9
Remedios
Moderator

Re: Residual interest on Chase Freedom card?


@Winchester2005 wrote:

Hello,

 

So I currently have a balance transfer in the works to transfer a balance from a Chase Freedom account to a Keybank Latitude account.

 

The statement just cut for the Freedom tonight, with a total balance of 7174. My balance transfer is for 7171 (I estimated on the total amount after the statement cuts)

 

I just scheduled a payment for the remaining 3 bucks. So, once the balance transfer occurs in about 2 business days, the balance will be exactly 0.

 

Am I correct in assuming there will be a little bit of interest that accrues this next statement date? Reason I ask is it is a joint account with my ex, and I want to close it out, but don't want it to negatively affect my credit with closing it with an outstanding balance (though it will suck closing it and hurt my AAoA, as it's my oldest card)

 

Anyway, any insight on potential for residual interest on next statement date? And, if there's residual interest or not, would there be any downside to closing it with a tiny balance (knowing that my credit will probably be knocked as its my oldest card and hurt my AAoA)

 

Thank you 


With Chase, it takes two statements at $0.00 to clear trailing interest. 

 

As far as scoring, there might be some lost points, but not due to AAoA. 

Your AAoA won't be affected since closed accounts can stay on CR up to 10 years, but your utilization might increase since limit on Chase card will no longer be included in aggregate utilization calculations. 

There might be loss/gain depending on limit on your Key Bank card compared to Chase card. 

Also, depending on the number of cards you have, losing one might affect number of accounts with balances metric. 

Those points are recovered as you pay your balances down. 

 

If you use Credit Karma to monitor your reports, their front end software does not include closed accounts in calculations, but that's just CK being CK. Pay no attention to that. 

Message 6 of 9
Remedios
Moderator

Re: Residual interest on Chase Freedom card?


@fatcomic wrote:

Sorry if I'm missing something as I learn something new everyday.  I didn't realize Chase allowed joint credit card accounts.  

Is your ex just an authorized user on your account?   If so, I would call Chase and have their card deactivated and even request a new card number if you think they might try to do something harmful to your credit line.    If the ex is just an AU, I would leave it open and just kick the ex off and let the account continue to age.  


If the card was opened prior to 2013 (or 2014, cannot remember exact year), joint accounts were allowed, I had one.  

I don't think they allow joint accounts these days but I could be wrong (rarely). 

Message 7 of 9
Winchester2005
Established Member

Re: Residual interest on Chase Freedom card?

Yes, this card was opened way back in 2009.

 

Ok I will try to call once the balance transfer posts, usually when I try to get payoff amounts over the phone, the rep just states the stmt balance but will try!

Message 8 of 9
tcbofade
Community Leader
Super Contributor

Re: Residual interest on Chase Freedom card?

Honestly, unless you're shopping for a mortgage this month, who cares?

 

Let it close with a small balance and pay the balance when you get the bill.

 

09/01/21 Fico 8: EX 736, EQ 750, TU 746.
09/04/21 Fico 9: EX 741, EQ 757, TU No idea.

Zero percent financing is where the devil lives...
Message 9 of 9
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