Comments on: Do Credit Cards Raise Interest Rates if You Close Them? http://www.creditwithdrawal.com/wordpress/2007/12/01/do-credit-cards-raise-interest-rates-if-you-close-them/ Helping You Kick the Credit Habit, One Good Idea at a Time Thu, 31 Dec 2009 04:56:04 -0700 http://wordpress.org/?v=2.8 hourly 1 By: Randall http://www.creditwithdrawal.com/wordpress/2007/12/01/do-credit-cards-raise-interest-rates-if-you-close-them/comment-page-1/#comment-229 Randall Thu, 06 Dec 2007 16:06:03 +0000 http://www.creditwithdrawal.com/2007/12/01/do-credit-cards-raise-interest-rates-if-you-close-them/#comment-229 @Kevin. Amen!! Couldn't agree more. Thanks for the comment! @Kevin.

Amen!! Couldn’t agree more.

Thanks for the comment!

]]> By: Kevin @ Change Your Tree http://www.creditwithdrawal.com/wordpress/2007/12/01/do-credit-cards-raise-interest-rates-if-you-close-them/comment-page-1/#comment-228 Kevin @ Change Your Tree Thu, 06 Dec 2007 15:49:25 +0000 http://www.creditwithdrawal.com/2007/12/01/do-credit-cards-raise-interest-rates-if-you-close-them/#comment-228 The truth of the matter is that they can raise the rates any time they want for any reason. They can one day just decide that they don't like you much--perhaps you call too many times to check your balance, or maybe you're paying a little too much each month; they can legally jack your rate. It's called universal default. The answer to solving the problem is to STOP USING CREDIT!!! The truth of the matter is that they can raise the rates any time they want for any reason.

They can one day just decide that they don’t like you much–perhaps you call too many times to check your balance, or maybe you’re paying a little too much each month; they can legally jack your rate.

It’s called universal default.

The answer to solving the problem is to STOP USING CREDIT!!!

]]> By: Randall http://www.creditwithdrawal.com/wordpress/2007/12/01/do-credit-cards-raise-interest-rates-if-you-close-them/comment-page-1/#comment-219 Randall Tue, 04 Dec 2007 23:58:06 +0000 http://www.creditwithdrawal.com/2007/12/01/do-credit-cards-raise-interest-rates-if-you-close-them/#comment-219 @Paidtwice. From what I've read, the only thing the CC companies have to do is notify you. Even if you close the account, there's still the 'Universal Default' clause that can get you. I 'think' that's what this discussion is referring to (now that I think about it) but I'd still like to hear more opinions from people that this has happened to. @Paidtwice. From what I’ve read, the only thing the CC companies have to do is notify you. Even if you close the account, there’s still the ‘Universal Default’ clause that can get you. I ‘think’ that’s what this discussion is referring to (now that I think about it) but I’d still like to hear more opinions from people that this has happened to.

]]> By: paidtwice http://www.creditwithdrawal.com/wordpress/2007/12/01/do-credit-cards-raise-interest-rates-if-you-close-them/comment-page-1/#comment-216 paidtwice Tue, 04 Dec 2007 18:58:25 +0000 http://www.creditwithdrawal.com/2007/12/01/do-credit-cards-raise-interest-rates-if-you-close-them/#comment-216 I have heard of kind of the opposite - that if a credit card says they will raise your interest rate, close the account to lock in the old interest rate. I don't think they can raise it *after* it is closed. But maybe in the process they can. I have never had it happen to me (and have never closed an account with a balance) so i don't know for sure. I have heard of kind of the opposite – that if a credit card says they will raise your interest rate, close the account to lock in the old interest rate. I don’t think they can raise it *after* it is closed. But maybe in the process they can.

I have never had it happen to me (and have never closed an account with a balance) so i don’t know for sure.

]]> By: Randall http://www.creditwithdrawal.com/wordpress/2007/12/01/do-credit-cards-raise-interest-rates-if-you-close-them/comment-page-1/#comment-200 Randall Sun, 02 Dec 2007 14:38:59 +0000 http://www.creditwithdrawal.com/2007/12/01/do-credit-cards-raise-interest-rates-if-you-close-them/#comment-200 Heidi, thanks for commenting and welcome to Creditwithdrawal.com It is true that closing an account affects FICO. That's because the ratio you're talking about is your utilized credit (debt) to available credit (credit limit) ratio. Anything over about 50% utilization starts to affect FICO. By cancelling an empty card, you subtract that from the high end (available credit) and that skews the ratio. The good thing, if you're not planning on using credit again :0 then it doesn't really matter what the credit score is. Heidi, thanks for commenting and welcome to Creditwithdrawal.com

It is true that closing an account affects FICO. That’s because the ratio you’re talking about is your utilized credit (debt) to available credit (credit limit) ratio. Anything over about 50% utilization starts to affect FICO.

By cancelling an empty card, you subtract that from the high end (available credit) and that skews the ratio.

The good thing, if you’re not planning on using credit again :0 then it doesn’t really matter what the credit score is.

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