Closing Line of Credit - Repercussions?

[myopa]

What is the name of your state?PA

I am thinking about closing one of my credit card accounts and interested in knowing a few things. Firstly, if I close the account and continue to pay in a timely fashion as I have done for the past 5 years, can the credit card company demand payment in full for closing the account? Second, will reducing the number of open lines of credit, although still obligated to paying them, help improve my credit score? Thanks**************..

[wayne-o]

Actually, I don't believe you can "close" the account until it is paid in full. You can ask the cc company to not allow any new charges to be made. But the best thing would be to cut up cards and don't use it. If you continue to pay in timely fashion, the cc company will allow you to keep on paying, but keep in mind they will also continue to charge interest and any applicable fees until account is paid in full.

[boonehead]

Sure you can close the account, just like when the cc changes the terms of it's agreement. you have the choice to close the account and continue with your current terms until the debt is paid.They are in the business of making money they do not get any interest if they make you pay in full because you closed your account

[djohnson]

Originally Posted by boonehead

Sure you can close the account, just like when the cc changes the terms of it's agreement. you have the choice to close the account and continue with your current terms until the debt is paid.They are in the business of making money they do not get any interest if they make you pay in full because you closed your account

I wouldn't listen to this. They aren't likely to close any account that doesn't have a 0 balance. Just like a bank. You can not make any new charges, but it won't be closed and it won't effect your credit score.

[boonehead]

Do you not ever get a change of agreement notice from your credit card company? It states that if you do not agree to the new terms you must notify them within a certain time slot, and your original terms will stay in effect until paid,your account will be closed but any charges you make after that date will be taken as agreement to the new terms. And all credit card agreements state they can at anytime demand full payment. the only time you may see that happen is if you fall behind, file for bankruptcy, or suddenly run up all your unsecured credit. they make their money on interest if they didn't they wouldn't be in business

[Debt Guy]

I've never seen a credit card agreement that allows the creditor to accelerate (demand payment in full) unless the debtor was in monetary default.

[Who's Liable?]

I would not fulyl close out an CC that has been opened for more then 3 years... If it is an account that has been in good standing, you are affectiverly closing your credit history, and your credit score will drop...