How does closing my credit card account effect my credit rating?

Author: leftisbest
Joined: 05 May 2004
Posts: 1
Posted: Wed May 05, 2004 7:27 pm
Post subject: close bad or good

I recently received a notice from TargetVisa that my APR would be increasing from 16.9% to 19.9% based on information they received from a CRA (too many accounts, high balances). I had 30 days to either accept the rate increase or close the account to keep the 16.9%. I closed the account and will continue to pay until the balance is paid in full. How does closing the account with a balance effect my credit rating? Should I have handled it differently?

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Author: Guest
Posted: Wed May 05, 2004 8:43 pm

You should have paid it off first and then closed the account.

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Author: NightStar
Forum Moderator
Joined: 07 Nov 2003
Posts: 2148
Location: Illinois
Posted: Wed May 05, 2004 8:44 pm

Yes it negatively affects the credit score, but still think you did the right thing keeping the interest rate low, just work at paying this off, or transfering first chance you get.

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