Closing accounts with balances

[Anonymous]

What are the pros/cons to doing this? How would it affect my credit in general? I, like many others, have gotten notices from the CCCs about them raising interest rates in the near future.  I have reasonably good credit, and I don't have any issues like late payments, missed payments, etc, but I guess I would be classified as a "slow payer" because I carry balances.  I've read the forums about calling to renegotiate rates, but I'm wondering what my options are if I'm not able to get lower rates.  I don't want to close any cards, but I'm just wanting to keep my rates low so that I can continue to make progress towards my debts!

Thanks for any advice you could give.

[Anonymous]

Welcome to the forums!

Read the following link before making a decision.  In general, any closed OC account with a balance is not a good thing.

Closing Credit Cards

Message Edited by guiness56 on 09-25-2009 02:21 AM

[jackg]

Paying your CC's on time and carrying a balance due does not qualify you to be a "slow payer". You're credit reports will say "Pays as agreed". Trying to renegotiate interest rates today is like trying to push an elephant up a 45 degree slope all by yourself. It isn't going to happen.

I've read and reread your post & I I'm not sure what you are trying to accomplish. You refer to the point that you want to keep your rates low and that makes sense but I'm thinking that maybe you are not sure that if you close some accounts that could effect the rates you currently have, correct? I can tell you what little I know and I'm pretty sure if you don't incur any adverse action from any of your creditors there won't be any reason for any one to raise your rates. On the other hand, if you close some accounts and decrease your available credit that will most likely cause a score drop due to increased utilization. The score drop does give your creditors a reason to raise your rates.

Convential wisdom here is that you should never close an account with a balance due, too many bad things can & will happen. 

Good Luck

Message Edited by jackg on 09-25-2009 11:31 AM