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here is the only dilemma...when I realized that I was 'way over my head' regarding the credit card account..I closed it........Kind of sort of locked in with the finance rates...... Any suggestions out there on what to do....
here is the only dilemma...when I realized that I was 'way over my head' regarding the credit card account..I closed it........Kind of sort of locked in with the finance rates...... Any suggestions out there on what to do....
Thats odd. Most creditors will not close the account while you carry a balance. As long as the account is in good standing, you probably have the same ability as anyone else to shop for a better rate and and transfer the balance.
If I were in your shoes, I would call the credit card company and tell them you would like to move the balance. Then, I would shop for a better rate and get crazy, crazy, crazy about paying it off.
most credit card companies will absolutely close an account. the good thing is, it locks in the rate (terms can't change). that's good if rate wasn't high.
how is your credit? can you apply for a credit card with another bank and transfer all or most of the balance? do you belong to a credit union? they'll often transfer for a nice rate of like 4.99%.
future advice - unless you really cannot control your credit spending, never close a credit card account you have. you already opened it, and you get positive points for the available balance, responsible use, etc. no reason to ever close it. freeze it in a bowl, cut it up and throw it away, but never close it.
most credit card companies will absolutely close an account. the good thing is, it locks in the rate (terms can't change). that's good if rate wasn't high.
how is your credit? can you apply for a credit card with another bank and transfer all or most of the balance? do you belong to a credit union? they'll often transfer for a nice rate of like 4.99%.
future advice - unless you really cannot control your credit spending, never close a credit card account you have. you already opened it, and you get positive points for the available balance, responsible use, etc. no reason to ever close it. freeze it in a bowl, cut it up and throw it away, but never close it.
I only closed one of my accounts because I was going to get hit with an annual fee. I'm not going to juggle my cards and change my spending habits just to avoid a fee.
I only closed one of my accounts because I was going to get hit with an annual fee. I'm not going to juggle my cards and change my spending habits just to avoid a fee.
yeah - no reason to keep an account with a fee (but closing it still impacts credit score negatively - i just think it's worth it to not pay the fee, as your score will rebound). sorry, there's always exceptions to blanket statements!
I had a chat with my branch manager today. He's not the loan officer, but he gave me some tips about how to improve your chances to refinance through a bank.
1. Your acceptance or rejection will be based at least 90% on your credit score. Sit down and talk to a loan officer, and explain, honestly, exactly, and briefly, what your position is. Ask him if he thinks you have a good chance of getting a loan, BEFORE you apply, because you don't want any rejected applications on your credit score. If he thinks you won't make it, he's likely to say so. They don't want to wste time, either.
2. Apply for a couple more credit cards, and use them for a small purchase or two, and pay them off every month. One imporant credit factor is the ratio of available credit to used credit. If your card once had a 16K limit, and you're now down to 10K, you have 6K available credit, that you're not using. Add a few more cards to raise you available credit total. Discover will give a card to anyone whose body is still warm, and the stores in the mall are usually pretty loose. They might even give you a free bottle of perfume for opening the account. (You said you closed your card account, which might hurt you. Ask them if they can restore it, giving them any **** (rooster) and bull story you need to beg your way in with your original credit limit.)
3. If your current bank is a big national, a loan officer may have less discretion about granting a loan. If that's the case, open an account at a small local credit union, and use it about half the time, to establish yourself as a good customer. Make sure the people who work there know you on sight, with lots of smiles and hellos. Wait a few months, and then have your serious chat with your friend, the loan officer. The loan officer there might have a lot more flexibility, and your character and personality might make the difference. If the loan officer is a man, you already have a sixth sense about how to win him over. He'll want to see your smiling countenance in the future. There's no reason you can't use your previous bank activity to help establish your credit.
4. Current interest rates on those kinds of loans are running in the 9-15% range, probably about half the rate you're paying on your credit card. But your car loan is probably less than that, because it's heavily collateralized. But the bank might be interested in including your car if they need you to use it as collateral.
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.....Kind of sort of locked in with the finance rates....
