Ice Princess asked:
My credit card company is raising my interest rate by double. They said I can close the account to keep the current interest rate and pay what I owe. I don’t want to pay the higher rate, so I will close the account. How will this affect my credit now with a remaining balance? How will this affect my credit once the balance is zero?
http://1mortgagecalculator.info
My credit card company is raising my interest rate by double. They said I can close the account to keep the current interest rate and pay what I owe. I don’t want to pay the higher rate, so I will close the account. How will this affect my credit now with a remaining balance? How will this affect my credit once the balance is zero?
http://1mortgagecalculator.info
That the balance will get reported to a collection Agency. Also, I don’t think companies let you close an account with a balance.
It will affect your credit a little bit negatively but not that bad. As long as you are not working out a partial payment settlement with them it will show the account as “closed at customer’s request”. Your score will raise as you get it paid off.
An alternative would be to leave that account open and transfer to another card that would give you a lower rate for at least a year.