I have several credit cards with high balances that require minimum payments of at least $20.00 and higher. Interest rates are at 20% and higher. I know that banks will bargain with a consumer to lower the interest rates significantly by closing the credit card for use. My question is, isn't it true that if one closes a credit card, it will look bad on their credit report and have a negative effect? Thanks for the help.Need financial advice from people, specifically about credit cards...?
It lowers your credit score, but sometimes you just have to close an account. For over 15 years I had a card with Capital One. My interest rate was 7.9% I was never later, never over the limit and always paid above the minimum, they still raised my interest rate to 17.9% I had the option to close the account and keep the 7.9% until the balance is paid. I closed it.Need financial advice from people, specifically about credit cards...?
Hi! Don't close any credit accounts until there is no balance and you have no use for the card. Always call the banks and bargain for a lower interest rate.
On your cards with interest rates, open a credit card account that has a promotional interest rate (0% for 6mos to a year). Pay off that debt in a 6months/1yr or less from the time it is transferred, and you will pay no interest!!!! Closing a card doenst always look bad, but dont close every account you own. It is better to have a decent amount of available credit (to establish credit history, etc) then to close every acocunt you have. Definetly look into the balance transfer offers! Here is a website that i use:
http://www.creditcards.com/balance-trans鈥?/a>
Sometimes if you call and ask to cancel an account then they will offer a reduced rate. Lately that is not happening as much. If you have a low rate and they notify you that it is going to increase, then you can cancel and lock in the lower rate, but you can't use the card.
Try a balance transfer to another card to get a lower rate.
No comments:
Post a Comment