I have a credit card with some late payments. Is it better to close it? It's now paid off.?

Question

I had a credit card with a $1500 limit. I had some 30/60 day late payments on it and it's negatively affecting my credit score. I paid it off last week ($0 balance), but the 60 days lates will still show on my credit report, right? Is it better to close the account? Or will the late payments still show up ? I know the account will stay on the report for at least 7 yrs, but what about the late payments ?

TIA!

Answer 1

The late payments will remain for 7 years from the date of the late. After they drop off, that trade line will move to a positive status.

Now that you have the account at a zero balance, keep it open. Closing it now will hurt your credit since you will be losing the utilization the credit limit gives you.
If you pay a yearly fee, then you might request they waive the fee.

You might try a goodwill letter to the creditor and ask them to remove the lates. Many, but not all, will work with people in that regard as long as you have a good reason for being late - and not just "I forgot to pay".
You might also bring up the positives of doing business with them (ego stroking lol).

Answer 2

The late payments will show up anyway. Closing the account won't make any difference. Creditors look at what you are doing NOW, so if you continue to charge and make payments on time, it essentially erases that bad credit. Been there, done that, it will be OK. Being late is way better than not having paid at all!

Answer 3

It will POSSIBLY go back to Pays As Agreed on your credit report after 6 months, since most credit card companies don't list every single time you're late.

Keep the card, but DON'T USE IT!!! Wait three to six months after it's paid off, and then get another copy of your credit report. Check it, and if you really want to close the card, do it.

If you've had this one for a while, though, you might want to keep it longer. It looks better if you have credit cards from the same company for a long period of time.

Answer 4

If it is still open, KEEP IT OPEN. Closing cards hurts your credit score! The lates will show up on your score 2-3 years whether you close the account or not.

Answer 5

If it is over 60 days late then there is a good chance the bank in have revoked it. If so, leave it closed & pay it off. It would be cheaper in most cases to obtain another card later and pay a new activation fee than it would be to pay the re-instate fee that it may charge.

Answer 6

If you close the account your available credit will drop and will hurt your score. put a little water in a baggy insert the credit card and put it in the freezer.....

Answer 7

History will be history. What is more important is that you don't have any debts. Don't worry on the score. Lenders will overlook it.