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If I canel my credit card will they...

jack up my interest rate on the balance that I have left to pay? We don't use it and only have 1200.00 left on it (paying out the wazoo to get it gone quickly). I just don't want to have the account open anymore so they quit sending me increases on my limit and the spam mail.

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Jademom07

Asked by Jademom07 at 1:49 PM on Nov. 11, 2009 in Just for Fun

Level 34 (64,323 Credits)
Answers (7)
  • If they do jack it up could you switch the balance to a better card? I'm sorry I can't answer your question.
    Bmat

    Answer by Bmat at 1:50 PM on Nov. 11, 2009

  • I wouldn't cancel it. I would just stop using it, but if the mail really bothers you and you want to cancel the account NO they will not jack up your interest rates. Congrats on getting out of debt-What a great feeling!!
    theutilitarian

    Answer by theutilitarian at 1:53 PM on Nov. 11, 2009

  • Canceling it without opening up another line of credit will negatively impact your credit score. If you want to cut your ties with that card company, switch the balance to a new card - but by new, I mean entirely new, as in sign up for a new card. Pay it off and then either stop using it, or only use it as much as you can pay off each month. Then it doesn't matter what the interest rate is, because you won't be paying interest.
    TiffanyMarie80

    Answer by TiffanyMarie80 at 2:25 PM on Nov. 11, 2009

  • You will have to pay it all off FIRST before you cancel it. Duhhh....
    Anonymous

    Answer by Anonymous at 2:34 PM on Nov. 11, 2009

  • You have to pay it off first, and then they will close the account. Be sure that it is paid IN FULL though because they nickel and dime you and find BS charges when you're at the end and they know you're closing it. It'll be easier if you have at least one statement with a zero balance. Grrrr to credit card companies.

    Pnukey

    Answer by Pnukey at 6:47 PM on Nov. 11, 2009

  • To keep a negative mark from your credit report, do NOT close the card before you pay it off.
    I would recommend that you call the credit card company, ask for the financial department, and speak to them about lowering your interest rate. Tell them if you are dissatisfied with their card and why, so that they may perhaps offer you an incentive - look for lower rates. If they increase your limit, do not use it, just let it be. When you make your payments, always pay above and beyond the minimum amount in order to reduce the principle. The lower the principle, the lower your interest amount will be, and the sooner you will get it paid off. Paying on time is a good plus for your credit, too.
    Once it is paid off, if you decide you still don't want it, then close it. But if there aren't any charges or fees, then you should keep it open for positive credit purposes.
    Best wishes!
    PrydferthMenyw

    Answer by PrydferthMenyw at 1:12 PM on Nov. 12, 2009

  • BTW...
    Contact the CC company and tell them you wish to opt-out of being contacted via telephone and email unless there is a problem with your account.
    Tell them you are not interested in rate increases or their incentives and to take your phone number and email addy off their subscription lists. They must comply by law.
    We have 2 credit cards that used to do this to us (Chase & Capital One) until I called them to opt-out.
    PrydferthMenyw

    Answer by PrydferthMenyw at 1:15 PM on Nov. 12, 2009

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