The first is a secured card, the second is unsecured with 0% APR til April. The first has a very high APR and I would like to close it. What happens when you close a secured credit card account. Can you pay off your balance with the collateral money used to get the card or do you have to pay the balance off and then wait for them to send you the money? Also, does closing a credit card account, even paid in full and having been only opened less than a year, give you bad credit?
2006-11-14 15:29:16 · 2 answers · asked by Anonymous in Business & Finance ➔ Credit
A secured credit card you may want to get rid of eventually because it holds a set amount of your money aside which you cant spend. Although credit cards may indeed make you poor if you are unwise in their use. Ideally the can be used to pay each months bills and paid through your checking at the end of each month. Once you start letting balances go unpaid the interest starts and once this occurs its hard to get out of debt, especially if you keep adding charges. Pay off the balance on your secured and close the account. Have them send a check for your deposit. If you owe a balance on the other then pay off that card with your deposit and keep your lowest interest card. Only worry about closing card with larger limits if your trying to get a loan for large items $$. Closing them may actually hurt your credit score. Depends on the situation. You will find you do need some sort of credit/debit card. Just try to rent a car without one or book a reservation. Even rich people got em.
2006-11-14 15:46:51 · answer #1 · answered by friendly advice from maine 5 · 0⤊ 0⤋
cut the card up!!!...pay it off as soon as you can....closing an acct by paying it off will not give you bad credit, but good credit. When the bill comes, pay more than the min. and pay it all if you can...cut the damn cards up, they will destroy any chance you have of being rich
2006-11-14 15:34:15 · answer #2 · answered by Anonymous · 0⤊ 0⤋