Closing a credit card account

cheryl22

Is it possible to close a credit card account so that no further interest is payable? Although payments still have to be made to clear the account.

I know someone who was advised by their card provider to do this.

izools

No.

Interest only stops being payable if:

1. The balance is cleared in full each month
2. The account has fallen into Default
3. There has been a string of missed payments and an informal arrangement to pay is agreed with the credit card company (their discretion)

When a credit card account is closed with an outstanding balance being cleared over several months / years, and is in good order, interest remains payable. Closing the account merely prevents interest rate increases throughout the time the balance is being cleared.