It will hurt your score. It normally takes out the high credit or credit limit section of the tradeline but leaves the balance: meaning, you just screwed your ratios. there's also a second reason. A lot of issuers will impose a monthly fee for closing an account with a balance. I don't know why but am guessing they normally close accounts with balances at their choice, not yours. I know Household imposes a 3.50 fee per month. Also... when you close the account you want them to send you a letter confirming the account is paid in full, paid in a timely manner, and closed at consumers request. the closed at consumers request is very important for points too. good question
I have one account on my credit report listed as the creditor closed it. I only had like 350 to pay off and I paid it in full and it is still listed as the creditor closed it. I wrote directly to the creditor and told them my account is paid in full and never late and to mark my account as closed by customer..... however they wrote back and refused. Does anyone has any suggestions on what else I can do? I don't think it is hurting my score much since I don't have any lates on my report.
Dispute it with the CRA'S...(3 IMPORTANT THINGS) "ACCOUNT CLOSED BY CONSUMER" PAID/NEVER LATE BALANCE $0
