If a credit card account is closed with a balance still due will the account show up on my credit report?

Answer 1

of course. It will show as closed with a balance.

Answer 2

And another thing: When you close an account that has a balance due, the balance that you owe on the closing date is treated as your credit limit for purposes of calculating your credit utilization, which is 30% of your FICO credit score. Credit utilization is about the percentage of your credit limit that your current balance is using, the lower the percentage the better. Whatever your credit limit was when the account was open, is ignored. Thus, if you owe $2014, then it appears that the card is 100% maxed out until you start paying it down. Best to pay off at least 70% of the balance asap. Point: if on any account your balance is more than 30% of your credit limit, it can hurt your FICO credit score.

Beware of the dreaded Universal Default clause on your agreement with another creditor, call them B. If you're suddenly maxed out with creditor A (by closing the account)and your FICO score drops, and B then reads your credit report, B can raise its interest rates to very high "default rates" even though you've been paying B in a timely manner every time.

The only good thing I've ever seen about closing an account out when there's still a balance is this: I read a friend's bills, who had an account that was way over the limit, and was charged an over-limit fee every month until the card was closed by the credit grantor.

Answer 3

Yes. If at all possible you want to pay this balance as soon as possible. Carrying a balance on an account that is no longer available to you hurts your credit score.Banks see it like this: you closed the account with a balance because of tow reasons: 1 you can't trust yourself to pay this account down without using it. and/or two they are no longer making as much money off you now that its closed. It sucks but this is their thinking. It probably would have been better to leave the account open until you paid it off. Then your credit report would show the closing of an unused account which banks consider using credit wisely.

Answer 4

Yes. Closed accounts show whether they were paid in full or left with a balance, for 7 years. Credit reports show HISTORY, not just the currently open accounts.

Answer 5

yes it will....even if the account is closed..if u never make the payment then that credit card company can transfer the account to collections...and will show as derogatory for 7 years..and then if u don't pay the debt it will be transfer to an attorney and u may be sued for the ammount owed..and then your credit score will drop...

Answer 6

Yes. It will show up on your credit report for 7 years, even after you pay it off. It's still going to show up that you paid it late. However, paying it off will at least show that you did finally pay it, which is a whole lot better than it showing up as an outstanding debt that you didn't pay.

Answer 7

Yes it will show as closed by account holder with your balance.

Answer 8

It will show up as a write off and we be a negative against your credit. Its best if you can make some arrangements to pay it off.

Answer 9

Yes it will. If you need answers to questions regarding credit cards go to www.cardweb.com

Answer 10

yes