Canceled my credit card.......questions

[SandEagle]

so i've had his same credit card for 15 years. this week, i maxed it out, but they allowed me to keep charging. is that legal?

i called customer service and they didn't want to help or lower my APR, so I said fffffuuuu, close my account. can they jack up my rates on a closed account?

i owe 10k on it. its already closed. how bad of a hit on my already dismal credit score?

 

[KentState]

Parody?

 

[Macamus Prime]

10K is pretty big. Good luck getting another credit card.

 

[ShawnD1]

Parody?

Of course not. This is SandEagle. His life really is that horrible.

-closing your oldest line of credit is bad for your credit
-maxing out is bad for your credit
-missing payments is bad for credit
-being black is bad for credit

 

[Newbian]

If they even decide to increase the interest rate then yours will go up also, last I checked the only time you can freeze the rate increase and to pay off at the lower rate is when you opt out of the contract when they inform you of the increase ahead of time.

 

[BoomerD]

Welcome to the 30% interest rate group...

 

[IceBergSLiM]

just stop paying and go through bankruptcy

 

[SandEagle]

i may stop paying if it hits 30%. i was at 12%. FML.

 

[ShawnD1]

That ain't too shabby. Up here credit cards start at 20%. Fortunately I don't know anyone who has any credit card debt.

 

[amdhunter]

Can you even close a card you owe money on?

 

[blackangst1]

All personal comments aside-

utilization is 30% of your FICO. With a maxed out card, not taking into account whatever else you have reporting, could have a negative 100 point effect on your FICO...again, depending on what else you have open, total UTI, and FICO score before you maxed it.

AAoA (average age of accounts) is 15% of your score. Your closed account will report for another 10 years, but when it drops off, you'll take a hit.

payment history is 35% of your score. As your delinquncy ages, your score will fall harder.

All in all, you could take a 150 point hit for this rash move of yours, moreso when/if it goes to 3rd party collections.

 

[ShawnD1]

Can you even close a card you owe money on?

Yes, but you still need to pay them back. Closing it just means you can no longer charge anything to the account.

 

[blackangst1]

Can you even close a card you owe money on?

Absolutely. But it *can* be a bad move. A closed account with money owed may still report positively (payment history) which is good; however, it will report as 100% utilized. So, if you closed a card with a $5,000 limit and $2,500 owed, it would go from 50% UTI (which is bad anyway) to 100%. Which will tank your FICO in most cases.

 

[SandEagle]

Absolutely. But it *can* be a bad move. A closed account with money owed may still report positively (payment history) which is good; however, it will report as 100% utilized. So, if you closed a card with a $5,000 limit and $2,500 owed, it would go from 50% UTI (which is bad anyway) to 100%. Which will tank your FICO in most cases.

well mine is a 10k limit with 10.5k owed.

 

[blackangst1]

well mine is a 10k limit with 10.5k owed.

Then read my other post in this thread. And enjoy your tanked FICO. Hope you dont need credit for a few years

 

[ShawnD1]

well mine is a 10k limit with 10.5k owed.

10k is how much you spent. 0.5k is interest and fees.

A couple times around here we had some accountant or banker explain how the credit card fees work. One of the parts was that the principal and the interest are in two separate accounts. It's possible to buy 9k of shit, have 1k of interest (total of 10k) and still be able to buy more stuff because the accept/decline is only looking at the principal. Your credit card debt can be over 10k, but you can keep buying things because the principal is below 10k.

Accounting is a fun game. You can't really tell wtf they are doing because everyone is doing something different.

 

[kami333]

Was it a card without a preset spending limit?

 

[Lotheron]

This thread is full of win.

 

[Krazy4Real]

Why did you close the account? That makes no sense. Create a payment plan and stick to it.

 

[SandEagle]

This thread is full of win.

i am glad that my financial problems amuse you. i am on the brink of disaster and bankruptcy and you are having a blast with this?! stay classy, Lotheron.


back on topic.....what if i let it go to collection and work out a deal? my fico is probably less than 550 now (lol). i dont care about the fico score though. its just a way to keep u in debt.

 

[BurnItDwn]

Pay that shit off man, not worth trashing your credit over 10K.

 

[nick1985]

I get the feeling that none of this is true, and we are all being trolled.

 

[zoiks]

well mine is a 10k limit with 10.5k owed.

Wow.

 

[PlasmaBomb]

Pics or shens.

 

[SandEagle]

Why did you close the account? That makes no sense. Create a payment plan and stick to it.

yeah it was a dumb move. i was angry, like an angry nerd. so i closed it. didnt know about the length of credit crap. i should have consulted here first before closing. can i call back and ask them to re-open it? i can grovel and plead momentary loss of sanity or something

I get the feeling that none of this is true, and we are all being trolled.

yes Nick, it is hard to believe since I am perfect and rarely make mistakes. but i am full of fail when it comes to fiscal responsibility. i cannot save worth a damn