Will it reflect negatively on your credit report if you close an account with debt still on it?

Answer

You can never close an account on anything if you owe money. If you owe money on a credit card or a loan, you just can't close the account. Until that debt is paid it is open. All debts should be paid or it will give you a bad credit report.

Remember, you are loaning money (even from credit cards) so it is your responsibility to pay this money back.

Answer

"Closed by consumer" is not necessarily a negative notation and it can be done on revolving accounts when there is a balance remaining.

However, categories which are considered to provide a consumer's credit score are length of time accounts have been open, and total amount of credit available. These two categories would be affected by closing your accounts and MIGHT cause a deduction in your score.

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