Question
****Closing an account**?
My fico is 700 as of today..i had to close a Bank of america credit card because of one late payment. they were big a$$es and told me that they knew i have never paid a late bill so they will take back the late fee but will have to raise my interest rate from 9% to 25% because of the new laws. i had no choice but to close it...it has a balance of $6,000.00. how many points of damage will this do to my fico score? I plan on paying off all my debt to raise my fico more in the coming year.
3 weeks ago - 3 answers
Best Answer
Chosen by Asker
Closing the credit card and paying off the balance wont affect your score, As long as BoA reports you're current credit limit on the closed account, your revolving utilization wont get screwed up, The card limit will be factored as if were still open, When the balance is finally paid, it'll stop being counted in yur utilization,
by drive_55_not
3 weeks ago
Asker's Rating: 
Other Answers
You are going to be paying 25% interest on $6000 and you are worried about your fico score? The fico score, like the credit card was designed to do nothing but get and keep you in debt. Stop playing the game. Be responsible with your money and live on less than you make. Pay as you go and save up an emergency fund. If you do. You will not have any payments. You will have money and you will not have to worship the great fico.
by heybulldog- 3 weeks ago
Your FICO may drop a few points. You're better off closing the account (to new purchases) and paying off the debt. They don't have to "raise the interest rates because of the new law". That's hogwash. They're raising the rate to recover the late fee plus anything else they can extort out of you. They're jumping the gun on the new law to get as much money from their customers as possible before the new law takes effect. The new law won't allow banks to raise interest rates on existing balances, just on new purchases (good customers only). Wouldn't it be great if EVERYONE dumped credit cards and went to a cash only method of payment (except for cars and homes). It would be novel if everyone saved their money for HDTV and other nice to have things and pay CASH! Bansk would have no choice but to lower interest rates, drop or lower fees to get people to spend money they don't have. I've been doing that for over 20 years. Banks can take their credit cards, shove them where the sun don't shine and fry in the hot place down below. The price of everything will go down because banks don't get the 2.5% "tax" on every credit/debt card purchase that's passed on to consumers.
by Dan B- 3 weeks ago