Hello everyone, this is my first time posting. This is a great forum. My question is how do you close a credit card account that has a balance? I have 3 accounts that really I don't use anymore because I want to pay them off and close them. I heard (rumor) that you can close the account, interest will stop?, and just pay them off. Is that possible. Thank you.
I have never known interest to stop on a closed account-I have several closed accounts, and trust me, the interest accrual does not stop. In fact, the only way they are making money then from your account is simply on the interest.
Hi Jackie, welcome to the board. I would not suggest closing any accounts until the balance is paid. The main concern being is that several credit card companies will increase your interest rate on a card with a balance on it if you close it. Fleet is one that I can think of, but there are a couple others. Dani
Welcome to the board. As Dani said DO NOT close these accounts until they are paid off, a few reasons, some banks will try to jack up your rates, yes they will still continue to charge you interest until it's paid off and also closing an account with a balance could look negative to potential creditors. Once you paid them off, call them and tell them you want your account closed make sure they report this closed at consumers request, also send a written letter and tell them to mail you a letter confirming you closed the account, the account has a zero balance and the date the account was closed. I know this seems like alot but sometimes you have to cover all your bases.
All you have to do is call the Company and ask them to close the account.. Also ask them to send you a letter stating that it was closed By you,, not the creditor.. When you close an account, it just prevents it from being used.. All of the terms and interest rates remain the same until the Balance is paid in full
Is this true? My American Express Corporate Card Account was closed by my employer (when I was laid off) but charges still posted to the card two months later (AT&T Corporate Calliing Card billed to the AMEX). The card was cancelled on 6/15. AT&T billed my May calling card balance to the card on 8/15. AMEX accepted the charge and re-opened my account. I refused to pay the charge (My employer gave me 1 month to settle my expense rpts) and have a $255 charge-off as a result. The moral of the story is that apparently when you set up a recurring charge such as a cell phone, internet service, gym dues, etc against your card, the charges can still post even after the account is closed (AMEX only?) Matt
