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Is it better to close a credit card account with no balance or simply leave it open and not use it and how does one go about closing an account?
Wiki User
∙ 12y ago
The answer depends on how many other credit cards you have. If you only have one then hang on to it. In fact, use it to buy a tank of gas or groceries once a month and then pay it off. This will have a very positive effect on your credit score. Some people mistakingly believe that just having a credit card is bad for their credit. Not so. Its better to have one or two cards, use them occasionally and pay them off.
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The above answer doesn't really answer the question. The answer is that, for most people, it is better to leave it open with zero balance. Your credit score is partially based on how much of your available credit you are currently using. Canceling a card causes these numbers to change for the worse. For example, let's say you have one card with a $5,000 maximum and another card with a $10,000 maximum. If you were carrying $3,000 on the first card, you would be using 20% of your total credit (3000 / (10000+5000)). If you canceled the second card, you would then be using 3000 out of 5000, or 60% of your available credit.
One thing to be careful of is leaving cards open that charge an annual fee, such as Rewards programs. If you haven't made any purchases on the card, it's easy to forget about paying it. Having a late payment on your credit report is much worse than just closing the account.
The moral is, cut up your credit cards if you want, but canceling the card can actually hurt your credit score.
You can close an account by calling the toll free number for Customer Service on the back of the card.
Wiki User
∙ 12y ago
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Can you close a credit card account if there's a balance on that account?
You can, but you'll still have to pay the balance monthly until it's paid off. Incidentally, if you're closing an account to help your credit, research shows that closing accounts in good standing can often ding your credit.
How can you close a credit card account?
pay the balance,if any,and cut that bad boy up -> YOU CAN CLOSE IT WITHOUT PAYING THE BALANCE (CONTINUE TO PAY SO AS NOT TO DAMAGE YOUR CREDIT)...BUT IF IT'S A PROBLEM ACCOUNT YOU ARE BETTER TO BE THE ONE CLOSING THAN HAVING THEM CLOSE IT ON YOU.
Which account would be closed by posting a debit to the account?
The closing process seeks to reduce the balance of each account that needs to be closed to zero; therefore, the closing entry must reverse whatever balance the account already has. This means that any (temporary) account that normally has a credit balance will be closed by posting a debit (and vice-versa). Revenue is an example of an account that must be closed with a debit, since it is normally a credit account.
The type of account and normal balance of Unearned Rent is?
The normal balance of Unearned Rent is typically a liability credit entry. The balance will show up in the post-closing trial of the balance sheet.
What is difference between debit turnover and credit turnover?
1. Credit Turnover is the summation of all the credit transactions in your account during the statement period.2. Debit Turnover means the summation of all the debit transactions in your account during the statement period.3. (Opening balance of account) + (Credit Turnover) - (Debit Turnover) = Closing balance of account.
Can you close a credit card account if there's a balance on that account?
You can, but you'll still have to pay the balance monthly until it's paid off. Incidentally, if you're closing an account to help your credit, research shows that closing accounts in good standing can often ding your credit.
How can you close a credit card account?
pay the balance,if any,and cut that bad boy up -> YOU CAN CLOSE IT WITHOUT PAYING THE BALANCE (CONTINUE TO PAY SO AS NOT TO DAMAGE YOUR CREDIT)...BUT IF IT'S A PROBLEM ACCOUNT YOU ARE BETTER TO BE THE ONE CLOSING THAN HAVING THEM CLOSE IT ON YOU.
Which account would be closed by posting a debit to the account?
The closing process seeks to reduce the balance of each account that needs to be closed to zero; therefore, the closing entry must reverse whatever balance the account already has. This means that any (temporary) account that normally has a credit balance will be closed by posting a debit (and vice-versa). Revenue is an example of an account that must be closed with a debit, since it is normally a credit account.
Which it's better closing a credit card with a balance or pay the balance first to closed?
It's better to pay off the balance and keep it open. It proves that you are competent enough to keep a credit card and not get into trouble with it. It will also increase your credit score.
Can you close your checking account if you have a balance left on your VISA card?
Yes, you can close your checking account even if you have a balance left on your VISA card. However, closing the account will not eliminate your obligation to repay the remaining balance on your credit card. You will still be responsible for making payments on the outstanding debt.
The type of account and normal balance of Unearned Rent is?
The normal balance of Unearned Rent is typically a liability credit entry. The balance will show up in the post-closing trial of the balance sheet.
What is difference between debit turnover and credit turnover?
1. Credit Turnover is the summation of all the credit transactions in your account during the statement period.2. Debit Turnover means the summation of all the debit transactions in your account during the statement period.3. (Opening balance of account) + (Credit Turnover) - (Debit Turnover) = Closing balance of account.
Does closing a credit card with a balance affect your credit rating?
Absolutely!!! Your credit score would go down and interest might be charged. Would be more of a lose for you. Its better to close it with a paid balance!
When does accounts receivable have a credit balance?
If an account has a credit balance the customer must have overpaid on their account or a credit was issued by the company and posted to the customers account, resulting in a credit or negative balance.
Can a credit card company charge a three percent fee up to one hundred dollars for closing an account with a balance?
Yes.
Is a Credit balance in vendor subsidiary account is an unpaid balance?
Is a credit balance in a vendor subsidiary account an unpaid balance owed?
Why is a capital account has credit balance?
The normal balance in a capital account is a credit. Capital is a balance sheet account. Assets = Liabilities + Capital
