will closing a paid-off credit card account that’s reported a late payment b4 hurt my credit?
Question by Bryan B: will closing a paid-off credit card account that’s reported a late payment b4 hurt my credit?
I have a retail store credit card. I carry a very small balance on it from time-to-time to take advantage of their no-interest promotions. Well, a year ago I forgot to make a twenty-dollar payment while I was out of town and not getting my mail. My credit was hit and it really hurt my score. The same thing happened this week with the same card. I paid the card off this morning but apparently I am just too retarded to keep track of more than a couple credit cards so I am considering closing the account. But I wonder what’s best… Should I try to “repair” my relationship with them by buying something else and making regular payments, or will that not help me? I have a mortgage and other credit cards (that I carry much larger balances on), and I am never late on them. So is it okay for me to close that retail store credit card account, or should I keep it for a while and try to show them that I’m not an idiot? What’s going to help bring my score back up?
Best answer:
Answer by Dana R
It is much much better to keep the account open with a zero balance than to close the account. Just having the credit helps your debt to high credit ratio and can eventually boost your score even if you don’t use it. It shows that you have credit and are responsible enough to pay it off and not keep a balance. If you have a few accounts that you use every once in a while and pay them off right away that is a good thing. Obviously it’s not good to pay them late at all. But in the end it benefits you more to leave the account open and not use it than to close it. Don’t worry about buying something else with it because that won’t make a difference. Just leave the account as it is. That will help your credit. Good luck!
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