closing an account
Date: Fri, 04/17/2009 - 14:25
Interest
Question 1. Does closing an account stop interest from accruing on interest bearing credit lines? I have an account with Bank of America. They closed my line of credit, stopping me from using the credit line, but they would not allow me to close the account. Question 2. Is it advisable to close this account? I have paid on the account, but have been unable to pay the full amount for the past three months. With late and over the limit fees I am $1,000.00 over the limit. I had never been late prior to their closing my line of credit in March. Please help!
Whether you close the account or not it is already showing as ne
Whether you close the account or not it is already showing as negative on your credit report. Especially since you are so far over the limit. Your best bet is to close the account if you cant pay it down. If you can close it and the interest still not accumalate and you can get a 23% rate then I believe its a no brainer. But if you cant then it makes sense to leave it open
It will continue to accrue compound interest until paid off.
It will continue to accrue compound interest until paid off.
It is far better for you to voluntarily close the account than for them to. But regardless, if you can't pay it it will go to default status and then charge-off and sent to collection agency anywhere from 3 to 6 months after 1st default.
