Credit Card Closed with Balance

[Miajames2567]

Okay so I am making this post because I've already contacted my credit card company and I just wanted to make sure what they said was right because the guy on the phone didn't sound so sure. So I had a capital one account and I've never been late on any payments but I made the mistake of making a payment that return which put me over my balance which resulted in them closing my account. So they told me they wouldn't be able to re open it even if I paid it off which I plan to do tomorrow which I don't really mind. The real question is will they report it to collections ? He told me no they won't because I'm not past due but I'm not really sure if that's right or wrong I couldn't find anyone with my exact problem so will I be in collections or can I continue to pay my balance off with them ? It's not that much it's like $300.  And also when is the time frame that they send it to collections ? I also want to add I already see that it says my account was closed on my credit report and it says account closed/ never late and my score actually went up.

[Jnbmom]

Duplicate 

[Jnbmom]

Why would you think  it  would report as a collection? It will not , pay it off as planned  and move on . It would only report if you did not pay it and left it go delinquent .

[Miajames2567]

Lol my parents never taught me anything about credit so I'm learning it all by myself but thank you I just wanted to make sure 

[NoMoreE46]

No, you should not go into collections as stated. 

For clarity, when is your due date and when did your payment bounce?

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@Miajames2567 wrote:

Okay so I am making this post because I've already contacted my credit card company and I just wanted to make sure what they said was right because the guy on the phone didn't sound so sure. So I had a capital one account and I've never been late on any payments but I made the mistake of making a payment that return which put me over my balance which resulted in them closing my account. So they told me they wouldn't be able to re open it even if I paid it off which I plan to do tomorrow which I don't really mind. The real question is will they report it to collections ? He told me no they won't because I'm not past due but I'm not really sure if that's right or wrong I couldn't find anyone with my exact problem so will I be in collections or can I continue to pay my balance off with them ? It's not that much it's like $300.  And also when is the time frame that they send it to collections ? I also want to add I already see that it says my account was closed on my credit report and it says account closed/ never late and my score actually went up.

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[NAVYCHOP]

Your credit account will simply show closed by credit grantor which does not denote anything negative as the account could have simply been closed for non-use.

It is annoying that banks generally will not reopen an account that they close.  I had a 30 year credit card and overdraft line with State Department Federal Credit Union that they closed when I had a high credit utilization on their accounts.  The month I paid off the credit card, I reapplied for a new card and credit line.  They gave me a $30k line on the cash back Visa card and $5k overdraft line, higher than I had before.  Just annoying that both credit accounts report as new accounts when I previously had both products for over 30 years which the credit union closed.

[SouthJamaica]

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@Miajames2567 wrote:

Okay so I am making this post because I've already contacted my credit card company and I just wanted to make sure what they said was right because the guy on the phone didn't sound so sure. So I had a capital one account and I've never been late on any payments but I made the mistake of making a payment that return which put me over my balance which resulted in them closing my account. So they told me they wouldn't be able to re open it even if I paid it off which I plan to do tomorrow which I don't really mind. The real question is will they report it to collections ? He told me no they won't because I'm not past due but I'm not really sure if that's right or wrong I couldn't find anyone with my exact problem so will I be in collections or can I continue to pay my balance off with them ? It's not that much it's like $300.  And also when is the time frame that they send it to collections ? I also want to add I already see that it says my account was closed on my credit report and it says account closed/ never late and my score actually went up.

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Just pay it off right away, you don't want to have a closed account with a balance.

If you do pay it off tomorrow, there's no reason for it to go to "collections".

[Miajames2567]

so when they closed your account you had a balance? And did you pay it right away or did you pay it off over time?

[SouthJamaica]

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@Miajames2567 wrote:

so when they closed your account you had a balance? And did you pay it right away or did you pay it off over time?

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Just pay it off today.

[NAVYCHOP]

When the State Department Credit Union closed my credit card account, I simply paid it down over an additional twelve months.  There was no late penalty and no increase in my interest rate as they closed the account.  I hear it probably hurt my credit utilization as I had a balance maxed out with no credit line, but I wasn't applying for any other credit and didn't care.  Long term I had no negative problem with the card as it was not sent to collections, as I always paid on time, and my account simply shows "closed by credit grantor" with now an identical credit card account that they opened with a higher credit line.  Their underwriting was whacko to close my account and I was probably a fool to reopen a new account with a higher credit line than I had before, just to show that I could.  It just underlines to me that I was smart early in my career to use USAA as my main account instead of SDFCU, as they will close your overdraft line for non-use.  Isn't the overdraft line supposed to be for emergencies?  Then they closed my 30 yr credit card for high utilization elsewhere when they then subsequently gave me a new credit card with a higher credit line after I paid the card off.  They claim to be a credit union for the State Dept but don't understand that their own employees who are mandatorily retired before age 55 have a temporary financial crunch until they can access many different funds available at age 55.