My credit card company changed its terms and is asking of I accept the new terms?
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Eddie Cacciatore, Private Eye wants to know:
This term change is after several years, and it was a reputable credit card company.
This term change is after several years, and it was a reputable credit card company.
If I don’t agree to the new (worse) terms, they will cancel my card, and I’ll have to pay the remaining balance. Would this hurt my credit rating if I don’t accept the new terms, let them cancel my card and just pay off what I owe over the year?
Tagged with: Cancel • Credit Card Company • Term Change
Filed under: True Credit
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You could do just that, send them notice you do not accept and wish to cancel the card. However, if you do not pay the balance owed in full at the same time, then you run into trouble.
They will simply send the account to their collections department and this will then be reported to the CRA’s and will drop your score like a rock.
Your better off to just accept the changes and not use their card anymore. Pay it off over the next year and just keep the account for credit scoring purposes only. Remember, an older account carries more weight on ones credit score.
Sgt Big red is right! Also the cc companies cannot cancel your account without your consent….
If your oldest account is closed, then your credit score does drop some, because the age of your credit history (defined as the age of your oldest open account) is reduced from the age of the card that was closed to the age of your next oldest card.
If the card is not your oldest, then closing it may hurt your score slightly, but also may help your score. Whether it helps or hurts depends on the credit limits on your remaining cards and various other factors. In any case, it has relatively little effect.
You get will get a small ding closing the account, because it will effect your available credit ratio. If the terms are truly worse then by all means cancel that card.