The notation that it is closed by the credit granter will not drop your scores, but it could be considered as a negative by a credit underwriter.
In general as far as it being closed, it could have be a negative since you would be losing the credit limit that was being reported. Which could drive up your overall utilization.
If you do not want the account, you might call and request that they show it on your reports as being closed by you.
If you want the account, contact them and request that it be re-opened.
They may or may not change the reporting status or re-open it, but either way, it would be worth it to try.
If you re-open it, use it at least once every 4 to 6 months for a small purchase and pay in full when you get the statement so you would not be paying interest.
2007-08-03 13:12:26
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answer #1
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answered by echo 7
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Sounds like your ONLY option is to decline the new agreement and pay off the card at your current rate since you say there is no possible way to afford the new rate's interest each month on your current balance. The damage done to your score by closing the account is far less than the damage done by having missed payments. The only catch for this agreement if you close the account is how long do they give you to pay off the card under that old 10.99% rate? Even if it's a year, you still owe at least $375 a month! Do what's best for your finances now, and don't worry so much about that house in the summer. When spring rolls around, evaluate your credit and see if you're in a position to buy a home. If you're not and you're still paying on this card with no room for extra expenses, it doesn't make any sense to take on a home purchase at that time.
2016-05-17 11:17:09
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answer #2
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answered by beverley 3
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Wow- that's messed up.
Yes- it will affect your credit in a couple ways- since you have less of a credit limit your debt to credit ratio will go up (which is bad). Also, if the card issuer states 'card closed at bank's request' instead of customer's request, that could look bad to lenders.
2007-08-06 08:39:46
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answer #3
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answered by JF 3
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You may take a slight hit as closing the account dropped your overall available credit. But your score will rebound quickly.
If you had this card for a long time and had a good history, that history will be lost and that could hurt you more.
2007-08-03 14:11:09
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answer #4
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answered by bdancer222 7
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Your credit score will be best when it shows a variety of sources of credit, i.e., car payment, mortgage payment, credit card payment, etc.
However canceling should not harm you, however, there is a such thing as having too 'little' credit. These are generally folks who pay nearly all their bills in cash, thus, no score to report.
2007-08-03 13:01:16
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answer #5
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answered by Venita Peyton 6
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You can actually lower your score by not using cards. I am not sure if it will lower becuase of a card cancelation, but I know if you have a bunch of cards and don't use them, then they will lower your score very slightly. It happened to me. I have no idea why they lower it, you are being responsible by not buying on credit, but I would assume it is to get you to spend money on the card or cards. Lame huh?
2007-08-03 12:50:46
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answer #6
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answered by Anonymous
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I wouldn't think it would be a negative as far as your score... but I'd be very careful about opening new lines of credit and having them closed for any reason...
2007-08-06 15:04:03
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answer #7
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answered by jason a 1
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It depends what agency it is that's reporting your credit, all 3 of them have different rules.
2007-08-03 13:10:14
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answer #8
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answered by Anonymous
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