cancel the credit card, will it hurt my credit score?

United States
October 19, 2009 4:08pm CST
Ok, I had mentioned about the citibank credit card sent me a notification about they will change the interest rate from %14.99 to %29.99, an outrageour hike which I couldn't accept. So, if I choose to cancel the card, it will hurt my credit score, will it? I did some research, and most likely, my credit score will go down if I close the account. What would be the better solution for it?
2 responses
@rosepedal64 (4192)
• United States
20 Oct 09
Hi clorissa I was listening to a talk show the other day on this subject. The credit advisor was saying that it would be best to pay off the credit cards if you can. So I called and was asking some questions. You are right, by cancelling the card it will lower your score a little at first. But then shortly after that it will show good rating for paying it off. It is like a loan if you pay off to early it can hurt the score. They advise that you wait one year before you pay off. So if you have had your card for that long then go ahead and payoff and cut up the card. If not then wait till you have had it for a year and then do it then. Im working toward that right now myself. Good luck and have a nice day. Keep smiling.
• United States
28 Oct 09
You know you may be on to something. If each one of us would do that then I think that the banks might think twice about all these crazy fees they keep coming up with. It is going to get to be a non credit card nation. That might not be a bad ideal..LOL Have a great day and keep smiling.
@snowy22315 (50858)
• United States
19 Oct 09
It may hurt your credit score but you can probably live with it. They usually dont recommend canceling credit cards unless you have to, but I think you will be able to live with doing that if you do absolutely have to do it.