Different take on credit card closing

[Anonymous]

Hi - First timer - am getting a crash course. Unfortunately carrying a large balance on cr card. Had been making large payments until past 3-4 months worrying about maybe needing cash but never late, and always paid more than minimum. Was paying 2.7% APR. Planned on paying off ASAP and last week received notice that mid-April would have to make decision - continue to pay off balance at 13.99%APR or close account and pay off balance at current rate 2.7%APR until paid off. Current FICO very nice.

What would happen to it if I close account and pay off balance at old interest rate? Thanks.

[llecs]

Assuming you have other CCs and your mix of credit is OK, your FICO score won't drop. Once you pay off the CC, then it will no longer factor into utilization. In the long run, if you ramin in good graces, it will fall off your CR in 10 yrs from the date you close it which could negatively impact your score if your AAoA is lower.

IMO, PIF ASAP. Some OCs have been know to send unpaid balances to collections, even if you pay as scheduled.

[Anonymous]

llecs - Thanks for the info. My interest was only in what it might do to current FICO - didn't think what it would do to CR down the road. Got to do some scrambling to get this paid off without closing account.