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Paying Off and Sending Back Cards - Hit or No Hit to Score

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Anonymous
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Paying Off and Sending Back Cards - Hit or No Hit to Score

First time post - please forgive this long winded question.

 

Question: Called my sole remaining gas card provider, after receiving a letter in the mail about lowering my APR in order to help pay down/off the balances.  They offered three choices: 1. lower to 9.9% and divide into three equal payments at which point they close the account. 2.  They will take 90% of what is owned to them right now and divide into three payments and then close the account after the last payment. or 3.  Pay the entire remaining balance each month (over three months) and they will rebate me 20% at the end.  The 20% is in the form of a credit balance on the card to be used.

I have never been enamored (this is putting it mildly) with this company and I do not use their cards these days.  If I take the 90% pay off and let them close the account will it reflect poorly on my scores?

 

All feedback is welcome!

RC

Message 1 of 3
1 ACCEPTED SOLUTION

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Anonymous
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Re: Paying Off and Sending Back Cards - Hit or No Hit to Score

The current status of the card is paid on time, although a couple of times the auto payment from my bank didn't go through in time (late by a day or two.) 

 

I don't put any gasoline purchases on credit anymore, but use family debit card instead.  We have other CC but are paying cash for everything the past few years. 

 

I hadn't thought about it being treated as a CO.  That is a question I will ask them when I call back.  I will push them to give me a lower the rate and pay off the balance over three months thus keeping the account open (but it is mothballed here in my desk.)

 

Thanks for the reminder about this possibly being viewed as a CO!

Message 3 of 3
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Anonymous
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Re: Paying Off and Sending Back Cards - Hit or No Hit to Score

What is the current status of the account?

If you take option 2, they'll likely report it as "legally settled for less than full balance" or "settled". FICO treats this the same as they would a CO account, from my understanding.

 

Do you have other CC?

 

If you can afford to pay and need the CL for your utilization or want to keep the card, I would take option 3.

Message 2 of 3
Anonymous
Not applicable

Re: Paying Off and Sending Back Cards - Hit or No Hit to Score

The current status of the card is paid on time, although a couple of times the auto payment from my bank didn't go through in time (late by a day or two.) 

 

I don't put any gasoline purchases on credit anymore, but use family debit card instead.  We have other CC but are paying cash for everything the past few years. 

 

I hadn't thought about it being treated as a CO.  That is a question I will ask them when I call back.  I will push them to give me a lower the rate and pay off the balance over three months thus keeping the account open (but it is mothballed here in my desk.)

 

Thanks for the reminder about this possibly being viewed as a CO!

Message 3 of 3
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