Secured Card with a Balance?

[Anonymous]

Has anyone ever closed a secured card with a balance? How does something like that get reported on your credit report?

[pizza1]

I would assume like any other card reporting. Once your balance is paid off, then your "secured" portion will be returned to you.

it will report closed with a balance. Just so you know, FICO will not consider this card into overall "utilziation"  once its closed.  YOu might consider that before you close it.

is there anyway to pif before you close it? Who is it with?

[Anonymous]

I am currently unable to pif. So will it reporting as closed with a balance bring my score down? It is with Capital One.

[pizza1]

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@Anonymous wrote:

I am currently unable to pif. So will it reporting as closed with a balance bring my score down? It is with Capital One.

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If you dont mind me asking.....whats your balance/CL, and are they closing it or are you? 

As stated, closed with a balance will continue to effect your score some. 

For example, lets say you have the following...( bal/CL)

CC#1....$300/500

CC#2...$150/300

CC#3...$250/300

With the above senerio, assumming they are open, you'd be at $700/1100 = 64%  util (this is what FICO see's)

Now...lets say you close CC#1 with the same balance....$700/600 = 116% util....(fico will see your total balances, but will not add in your closed CC CL. 

Does this make sense at all? LOL...Im trying to explain the best I can.   Do you have any other CC's you could get a CLI on, to make for what youll losing when it reports closed with a balance? 

Without having to reveal too much personal info, it would help to know whats going on some, so we may assist further, and others can come on and give advice as well...

[NRB525]

Good try Pizza

The only reason to initiate a Closed by Cardholder of a card with a balance is to freeze the terms if the lender is trying to change terms. OP, has Capital One proposed changing the terms such as APR on this card? What is the limit?

You are free to close it, with a balance or without, but you still need to pay it off if there is a balance. It won't have much impact at all on your credit report, so if you are looking to "hide" the balance by putting it on a closed card, no, not going to disappear from your credit report

[pizza1]

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@NRB525 wrote:

Good try Pizza

The only reason to initiate a Closed by Cardholder of a card with a balance is to freeze the terms if the lender is trying to change terms. OP, has Capital One proposed changing the terms such as APR on this card? What is the limit?

You are free to close it, with a balance or without, but you still need to pay it off if there is a balance. It won't have much impact at all on your credit report, so if you are looking to "hide" the balance by putting it on a closed card, no, not going to disappear from your credit report

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I thought I did ok there NRB, LOL...Everything we both have said to the OP is true.

Hopefully the OP will come back on their thread and maybe give us a little more info so folks can offer advice in his/her situation. 

[Anonymous]

Sorry i took so long to respond. Cap one is not trying to change terms. Something came up and i had to use most of the available credit on the card. The limist is $3000. I know its alot for a secured card but i was trying to increase utilization. So now i am having a hard time keeping up with my payments. I thought because the card is secured and i close it then they just end up keeping my security deposit and the balance is $0. Any advice is appreciated. Thank you.

[Anonymous]

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@Anonymous wrote:

Sorry i took so long to respond. Cap one is not trying to change terms. Something came up and i had to use most of the available credit on the card. The limist is $3000. I know its alot for a secured card but i was trying to increase utilization. So now i am having a hard time keeping up with my payments. I thought because the card is secured and i close it then they just end up keeping my security deposit and the balance is $0. Any advice is appreciated. Thank you.

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Is there any way you can make a payment agreement or take a loan to pay it? Having a negative from a secured card is going to cause problems with your credit that it will take time to overcome, and $3,000 is a fairly small amount ot just walk away from without finding a different solution.

[Anonymous]

So even if they keep the security deposit which would cover the $3000 balance, it would still affect my credit? I am wondering though has anyone else has been caught in this situation and what was the outcome.