Credit Tips: Best Way to Close a Credit Card Account

Posted On: January 1, 2006

archive
Posted: Fri Aug 06, 2004 3:05 pm
Post subject: Best Way to Close a Credit Card Account

Kevin
Date: 7/8/2001 10:49 pm CDT

I have 7 credit cards ( 3 of them are store cards ). I only use 3 credit cards ( haven’t used the rest 4 cards for a long time and I don’t carry any balance on them ). I would like to know if closing 4 credit accounts AT ONCE would negatively affect my credit history. Thank you for your help!

archive
Posted: Fri Aug 06, 2004 3:05 pm
Post subject: Best Way to Close a Credit Card Account

Eugene
Date: 7/8/2001 11:33 pm CDT

I would like to know if closing 4 credit accounts AT ONCE would negatively affect my credit history.

Not any more than closing them over time would, if at all. So, if you decided to close them, go ahead. Then check if they are reported “closed by consumer” on all three credit reports.

archive
Posted: Fri Aug 06, 2004 3:05 pm
Post subject: Best Way to Close a Credit Card Account

dave
Date: 7/8/2001 11:37 pm CDT

It might. You want to check how this will affect your balance to limit ratio. Any significant upward change in that ratio will reduce your score. Also, the age of the accounts may be important. You may want to keep the oldest account active. You could safely get rid of all but one of your retail cards. Keeping one helps but having too many may be a negative.

archive
Posted: Fri Aug 06, 2004 3:06 pm
Post subject: Best Way to Close a Credit Card Account

Kevin
Date: 7/9/2001 0:08 am CDT

what is the balance to limit ratio ? The total of my credit lines is about 41% of my annual income, however, I always pay off my balances. The oldest card I have ( the first one I got ) has no grace period, $59 annual fee and 24% interest rate. That’s why I would like to close it but that would cut the age of my crdit history by more than one year ?…what do you think?…thank you !

Credit Tips: Best Way to Close a Credit Card Account

Posted On:

Author: archive
Posted: Tue Jul 27, 2004 1:26 am
Post subject: Best Way to Close a Credit Card Account

Karen Dahlin
Date: 9/3/2001 7:44 am CDT

My husband has an account with Merrick Bank. He closed this account a year ago and wants to pay it off. I have asked for a letter for payoff many times and this company still has not sent it to us they keep adding on annual fees and late charges and monthly charges now. They keep harrassing me by phone all hours of the day and night. What and how am I going to pay this bill off if they won’t cooporate.

Thank You
Karen Dahlin

Author: archive
Posted: Tue Jul 27, 2004 1:27 am
Post subject: Best Way to Close a Credit Card Account

Board Monitor - AD
Date: 9/3/2001 10:22 am CDT

Karen,

Before you can request to close an account, you need to first pay off the balance in full. Simply call the bank, ask for a payoff amount within a 10 day period (if you plan to pay it off by then), and then once they have received payment (and you have verified this) ask to close the account.

Sincerely,
Alex Daskaloff
http://www.creditcardfreedom.com

Author: archive
Posted: Tue Jul 27, 2004 1:27 am
Post subject: Best Way to Close a Credit Card Account

: Ed Mason
Date: 9/3/2001 11:39 am CDT

Karen, \
If this is a credit card account, you can always close it by calling the Customer service Toll Free # on the back of the card.. It does not matter if there is a balance or not.. It still has to be paid.. Also another question.? Why are you getting late fees? Have you made any of the required Monthly minimum payments..? Even if you were waiting for a payoff balance, you still should have been making your payments.. I looked up Merrick Bank on the Computer.. and it seems that you can call any branch and they should be able to give you a payoff figure.. If you want to figure out how much interest will be added on each day,, Use this formula..

Lets say the Interest rate on your acct is 15.9

Divide 15.9 By 365 days to get your daily periodic rate =
.04356164

Now lets say that the balance as of your last statement that is subject to finance charges is 5000.00 Take the 5000.00 and multiply it by the periodic rate

5000.00 x .04356164= 2.17 per day…. all you have to do is take the 2.17 and multiply it times the amount of days that you think that it will take for you payment to arrive.. Just add the amount that you come up with to the balance on your statement.. If you overpay it.. You will be refunded,,