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Old 06-04-2008, 10:06 AM
 
83 posts, read 689,020 times
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Hello, I currently have 2 Credit Cards. I want to close the account on one of them. I have a small balance on the Card I want to close but I am curious can I continue to make payments or will they demand the balance upon closing of the account? Please give me advice on this topic! I appreciate the help!
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Old 06-04-2008, 10:35 AM
 
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In general, everybody everywhere wants to be paid in full before closing an account. I am not friend of the CC industry, but would not you want to be paid in full, too? So that part seems reasonable.

If you want to close them quickly, I have found that slightly over paying a final payment is a way to force and ensure that no fees, interest, or old charges that have not made it through are covered.

While I have not seen as any recommendation, it seems a good way to prep them to close. A lot of systems such as phone and on-line payment systems do not allow an overpayment, but generally a real paper check mailed in allows this, because they have to deposit the check at its full face value.

Then BOTH call and write and direct the CC company to close the account. They will typically try to get you to keep the account, and they will insist it stay open for another 90 days (or so), for any open charges. Sometime after that they will send a refund check to you for what you have overpaid.

If you wish to stop someone or some organization from charging against your card or account while you are paying it off, or waiting for the CC company to close it -- HERE is a great tip -- Report the card lost or stolen. That will kill all acceptance of that card and account number, and stop any transactions that merchants are attempting to improperly make. Just stops everything COLD. Works great. Had to do that with an online internet service company -- PeoplePC -- now I see PeoplePC is being sued for refusing to close (and keep making CC charges) on customer accounts.

After you report the card lost, the CC company will send you a replacement card with a different number, whether you want it, or not -- so just tear it up if you do not to use it, and pay it past zero and then direct them to close the account.
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Old 06-04-2008, 11:57 AM
 
1,851 posts, read 3,118,499 times
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Question Why are you closing the account?

Quote:
Originally Posted by bradshaw View Post
Hello, I currently have 2 Credit Cards. I want to close the account on one of them. I have a small balance on the Card I want to close but I am curious can I continue to make payments or will they demand the balance upon closing of the account? Please give me advice on this topic! I appreciate the help!
How long have you had each card? In general, when closing a credit card account that is currently reporting to all three bureaus (Equifax, TransUnion, and Experian) it is best to NOT close the account that has been opened the longest. Doing so will result in a decrease in your credit score, as you will effectively "end" the reporting history that comes with the account being opened.

If you have a balance and need to close an account, most credit card companies will allow you to do this. You will simply be billed monthly until the account is paid in full, but your report will read "account closed per consumers request."

My suggestion is this: keep the account open, cut up the card. Pay it in full, and purchase a monitoring service so that you are made aware of any activity on the account, since you will no longer be using it. There really isn't a need to close a credit card account that is over two years old unless you've experienced ID Theft, etc. Simply stop using the card and allow it to remain, in good standing, on your reports.

If the credit card company charges a fee on the card, call them and negotiate a fee waiver, since you will essentially no longer use the card. Many companies will accommodate this request on dormant accounts.

Hope this helps.
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Old 06-04-2008, 02:14 PM
 
Location: Apple Valley Calif
7,474 posts, read 21,234,228 times
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Jaded is correct, don't close the account, cut up the card, or hide it deep in a drawer.
You don't need to purchase any monitoring service, if you have on-line banking, you can monitor the card every day.
When I use my credit or debit card, I can go home, log on the computer, and the transaction is already posted there. No need to pay someone else to do it for you. With a zero balance, it shouldn't require much monitoring.....
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Old 06-04-2008, 03:58 PM
 
Location: Los Angeles Area
3,306 posts, read 3,658,939 times
Reputation: 592
They will want their money first.

But as others said closing it may drop your credit score, whether you care about that is a different story. I currently have a citi bank card that don't use much anymore but don't want to close it because its my oldest credit card, I just use it for a couple of monthly service charges (netflix) to keep the the bills coming.
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Old 06-04-2008, 06:55 PM
 
1,851 posts, read 3,118,499 times
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Quote:
Originally Posted by Donn2390 View Post
Jaded is correct, don't close the account, cut up the card, or hide it deep in a drawer.
You don't need to purchase any monitoring service, if you have on-line banking, you can monitor the card every day.
When I use my credit or debit card, I can go home, log on the computer, and the transaction is already posted there. No need to pay someone else to do it for you. With a zero balance, it shouldn't require much monitoring.....
I completely forgot about online banking now...duh! You can simply monitor your activity yourself, if you choose to.
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