Can you close out a credit card even if it has a balance so you can't continue using it?

Question

I have a credit account that stays maxed out b/c I always end up using it to get by when I don't have extra $$. I like having it around for backup but the debt has just got to go. I'm tired of having it hanging over me. Can I close the account while it still has a balance so I can pay it off but not be tempted to use it? I guess I could just cut the card up but I can see myself ending up finding a way to use it anyways. Also would doing somthing like this have any negative effects on my credit?

Answer 1

Yes you can, but of course you'll still have to pay off the debt. There are many credit cards out there now days with many different guidelines, so you want to make sure to read your agreement to find out if they can still change your interest rate even if the account is close.

To find out more, call your credit card company. Ask them all the questions you have, they're the best source of information for you at this time.

I don't think you can get anything negative from closing your account, as long as you keep paying it, you should be okay.

Good Luck ;)

Answer 2

First write a budget. Then call the credit card company and explain the situation to them. They'll probably still help you at this point. They don't want you to be bankrupt. Also, cut the card up. It'll be a lot more trouble to use that way. The basic problem here is a lack of a budget and a lack of self control when you're in a pinch or scared about something, of telling yourself the truth about yourself. Once you do that, it gets easier. With a budget written you can tell yourself the truth about things like if you need a job that pays more, or if you need a place that costs less or if you would rather spend money on partying than a newer car. You have to know what you are spending, so you have to keep a record for a month or so. Once you do that, you can establish priorities. With these priorities, you can speak to yourself about what winning and losing is in the money game. Another new sweater?? Losing. Buying a house at a good price? Winning!

Answer 3

Hello, yes you can call them and have the account closed even if you have a balance. Your account will still be subject to the interest charges. Depending on the length of time you have had this card it may effect your credit some by closing it. Your credit is based on the amount of credit versus income but also by the length of your credit history. So if you have had this card for a while it might be in your best interest to keep it open and just slowly try to train yourself to save some money so that you will have a different back up plan for unexpected expenses.

Answer 4

Call the credit card company. They are actually not that hard to deal with. Just tell them of your difficulties, ask them to cancel the card and ask them if they are willing to forego the additional finance charges while you get this balance paid off. If you promise a monthly amount you must make it on time and for the amount you promise or they can take away any agreement you arrange. It will not have a negative effect as long as YOU are the one cancelling. It has a worse effect if you are late (it will show as being late and over the limit on tyour report). When you arrange to make the payments, make sure to keep them at a manageable level, you can always add a few bucks, but don't ever send less than what is agreed upon. Good Luck. It takes patience.

Answer 5

Your credit score is going to suffer if you cancel your credit card because while you still owe the debt your ratio of debt will be higher anyway. Your best bet is to cut up the card and/or use discipline with it. Nobody can tell you what you want or need except for you. Keep that credit card active and pay it off asap because it will at least give you a credit history for more important purchases like home or car. If you must, consider a bank loan to pay off the full amount and cut up your card so you cannot use it. That way you will have a lower and fixed interest rate with only one payment to the bank. Living on credit only gets you further and further in trouble. You shouldn't charge anything that you cannot afford to pay off in full. That way you can make money your slave instead of your master. Your question is one of responsibility and maturity. Only YOU can answer it.

Answer 6

You can call the card issuer and tell them to NOT authorize any more charges to the card. They can't close the account, as such, when it has a balance. They can only assist you in preventing further charges. Expect resistance from them when you make your inquiry, since they WANT you to make more charges. That's how they profit from your spending.