APR Rates After Closing a Credit Card

I'm thinking about closing a credit card account because the creditor does not want to lower my APR. I've had the card almost 2 year and pay on time faithfully. But if I cancel will the APR continually accumulate on the balance or would it be whatever is left at the time of cancellation? Also, the credit card is through my bank. Do you think they'll make me close out my checking accounts with them?

Ad


Tantanisha from Sanford, FL

Flag
November 7, 20080 found this helpful

What you may think, what other people may respond with and how the credit card co. responds will be three different answers. I would suggest you call the credit card company and get their answer which I believe would be the more accurate. I am sure any balance you have will continue to have interest charged to it. You could also call your bank and speak someone who deals with credit cards.

ReplyWas this helpful?Helpful? Yes
Flag
November 7, 20080 found this helpful

Thank you for your input. I will do some calling around.

ReplyWas this helpful?Helpful? Yes
November 9, 20080 found this helpful

Look around online for a reputable credit card that has a great introductory rate and a better rate than you are getting now for the long run. Frequently they have no-fee balance transfers. Transfer the balance you have to the new card and then close the old one.

You are not required to have a credit card to have checking and savings accounts (they still make money off of any balance you keep with them). However make sure you keep whatever minimum balance is required so you don't pay big fees.

Meanwhile, do everything you possibly can to pay down your credit card balance as quickly as possible. You are NOT saving money by buying anything on sale if you are putting it on a credit card. Ideally, you should be able to pay off your credit card in full each month and use the card simply because it provides for faster checkout,returns of merchandise, and perks through whatever points program they offer

Good luck

Ad
ReplyWas this helpful?Helpful? Yes
November 9, 20080 found this helpful

Definitely talk to your credit card company. A friend of mine was able to persuade her own credit card company to giv her a 6-month moratorium on interest, essentially a promotional rate. Since my case with my own credit card company wasn't nearly as strong, I couldn't get the same deal. If you're in a position of strength, ask for a break, especially if you're cancelling the card anyway. Be aware, though, that unless you can qualify for a break, your card will continue to accrue interest until it's paid in full. Pay as much as you can, as quickly as you can, and cut up the thing when it's paid off - and don't forget to specify *in writing* that you want the account closed.

Ad
ReplyWas this helpful?Helpful? Yes
Flag
November 12, 20080 found this helpful

I know long time ago it was a good thing to CLOSE an credit card account but now they say it can hurt your credit report and credit score in the long run. You can go to www.clarkhoward.com website. He is a consumer guru from Atlanta Ga but you can pick him up on radio all over the country. He says to pay it off and every so often charge something on it to help your credit score. You could also say you got an offer from somewhere else and see if they will match it.

GOOD LUCK

ReplyWas this helpful?Helpful? Yes
November 25, 20080 found this helpful

Try asking for a cut in the interest rate at different times-what does nt work at 4 pm sometimes works at 2 am-it s just getting the right person-persistance.

ReplyWas this helpful?Helpful? Yes
Flag
December 2, 20080 found this helpful

Be sure to read any terms and conditions or the fine print; my last credit card disclosure stated in the fine print that if I do not agree, they can close your account. I usually do call and ask nicely if there is a way of lowering my apr; and in most case they will if you are a good user.

ReplyWas this helpful?Helpful? Yes
July 23, 20090 found this helpful

I can't answer your question about rates going up on a closed account, but if you are attempting to build your credit, don't close the account unless you have to.

Closed credit card accounts lower your credit score. They say it lowers the amount of money you have access to. This information came from creditcheck online which reports your credit information from all three of the major credit agencies--Experian, Equifax, and the third one.

ReplyWas this helpful?Helpful? Yes

Add your voice! Click below to comment. ThriftyFun is powered by your wisdom!

Related
In This Article
Hand With Gold Credit Card
Saving Money With Credit Cards
Categories
Budget & Finance Credit CardsNovember 7, 2008
Guides
weighing postage
Finding Postage Rates Online
Self-Closing Gate With Springs
Installing a Self-Closing Gate
A couple renting a car.
Renting a Car Without a Credit Card
Credit Report on Table
Raising Your Credit Score
More
🎄
Christmas Ideas!
🍂
Thanksgiving Ideas!
Facebook
Pinterest
YouTube
Contests!
Newsletters
Ask a Question
Share a Post
You are viewing the desktop version of this page: View Mobile Site
© 1997-2016 by Cumuli, Inc. All Rights Reserved. Published by . Page generated on November 22, 2016 at 8:06:23 AM on 10.0.2.129 in 2 seconds. Use of this web site constitutes acceptance of ThriftyFun's Disclaimer and Privacy Policy. If you have any problems or suggestions feel free to Contact Us.
Loading Something Awesome!