calliope320
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Your score will most likely go down if you close your credit card. Your FICO score is based on the following things:
* 35%, punctuality of payment in the past
* 30%, the amount of debt, expressed as the ratio of current revolving debt (credit card balances, etc.) to total available revolving credit (credit limits)
* 15%, length of credit history
* 10%, types of credit used (installment, revolving, consumer finance)
* 10%, recent search for credit and/or amount of credit obtained recently
By closing your account, you're making your ratio of debt to to credit limits worse.
For example, if I had three cards with a $1,000 credit limit each, my total credit is $3,000. Let's say I have a balance of $500 on each. That's 50% usage. Now, if I paid off one of them, it would be $1,000/$3,000 or 33% usage. If I closed the card that was paid off, it would still be $1000 charged but it would be out of $2000 limit, so it's back to 50% usage. The work I did to pay off the third card was wasted by me closing the account.
Secondly, closing accounts reduces the average length of your credit.
I'd be very careful about closing accounts with that in mind. Of course, if you have like 15 cards, you might want to close a few, but really weigh your options.
Just keep making on time payments, pay it off, then shred it if you must but keep the account open. |
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Yanswersmonitorsarenazis
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Don't close it. It won't affect your interest rate, but will likely lower your credit scores.
Call them and see if they'll negotiate a lower interest rate for you. If they won't, just do everything you can to pay it off quickly.
Tightening the belt on coffee, fast food, and other junk can usually help people find an extra $50-100 per month to throw against their debts. And never carry the card, so you can't add to it again. |
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Dmoney25
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they won't allow you to cancel your card when u have a balance and notifying them that your having trouble will only make it worse.
Try to consolidate the cards, cut them in half and pay it off. |
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skcs69
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It is fine, shows fiscal responsibilety. |
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LA Chef ~D
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i dunno i'm just starting my credit but i wouldnt because they might charge major intererst and fees not including the balance u owe them. it could also damage your credit rating. i would pay the balance first then cancel it |
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mikeduptwo
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What I would do is loan the amount of money I owe in debt from my homeowners/home/estate loan, and use that money, from the homeowners, to pay off my credit card debt. That would increase the homeowners loan, but nuetralize the credit card debt. By having credit card debt, you pay a higher rate than you do on your estate/homeowners, so transfer all debt to your homeowners. Therfore, you are still in debtfoir the same amount of $, but by putting it on your homeowners, you end up payying a lower rate! |
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Kristen D
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As long as you are making payment then the interest rate should be ok. But then again, credit card companies can do whatever they want, including raising your rate for the heck of it. I would transfer my balance to a 0% interest card and close the other. |
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Alan W
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Wise? Yes! Increase credit score; maybe, maybe not.
To find out about rate would depend on the agreement the Credit card has with you.(The fine print) It would also depend on how you have been at paying them or their reporting your payments. I would say call customer service and ask them, then ask them to send you a letter stating your agreement.
Good luck |
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