Closing account with balance; affect on credit score?

Posted by Joe Fabritz (12.235.55.17) on July 09, 2002 at 12:13:51:

Quick question...

I have a credit card that has sent me notice that they plan on changing my interest rate (in their favor) and I have the ability to opt-out of the rate increase if I notify them in writing. This action will close my account to further charges, but I will still have a balance due.

How does this type of account affect my credit score? Will the maximum credit fall with my balance, or will the maximum credit go to zero?

If it goes to zero, I will then have a severely imbalanced ratio of total money owed to total credit, which of course will screw up my score.

Should I just suck up the rate increase and then tell the credit card company to kiss my rear when I accelerate my payments?

Thanks for the help!

Joe

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