capital one credit card - closing the account

glasgowsaver2011

I got this credit card, 500 limit, purely for a balance transfer.

I then wanted to close the account and then keep making the minimum payment or more each month.

I called them to ask and they said I had to clear the balance before closing the account.

This has never been the case with any other credit card company I have been with.

I have been able to close the account and just then pay off the balance over time.

TheGenerus1

I think that if they have hiked up the interest rate on the card, then you can opt out which means that they will close your account and you can continue to pay down the balance at the old interest rate until it is payed off (but you can't use the card again).

If this is not the case with you and you have a balance on the card but wish to close the card then I believe the card company can set up a AP (Arrangment To Pay) plan which will close the card and let you pay a pre arranged amount every month till the balance is payed off (interest rate may be frozen for you).
This will have a very negative impact on your credit rating as it is a sign that you cannot handle you current debts.
More than likely, you will not be able to gain credit again for another 6 years till it drops off your file.

Make sure that you do not enter into an AP plan with the credit card company by mistake, thinking that they have closed your account and frozen the interest and have let you pay the amount down as normal without any penalisation.

Closing down a card with a balance may be allowed by some companies, again card cannot be used again, interest will still be charged until the balance is paid off, but I think the card you have is a Cap 1 credit building card which is not allowed unless you enter into an AP Plan.

glasgowsaver2011

TheGenerus1 wrote: »

I think that if they have hiked up the interest rate on the card, then you can opt out which means that they will close your account and you can continue to pay down the balance at the old interest rate until it is payed off (but you can't use the card again).

If this is not the case with you and you have a balance on the card but wish to close the card then I believe the card company can set up a AP (Arrangment To Pay) plan which will close the card and let you pay a pre arranged amount every month till the balance is payed off (interest rate may be frozen for you).
This will have a very negative impact on your credit rating as it is a sign that you cannot handle you current debts.
More than likely, you will not be able to gain credit again for another 6 years till it drops off your file.

Make sure that you do not enter into an AP plan with the credit card company by mistake, thinking that they have closed your account and frozen the interest and have let you pay the amount down as normal without any penalisation.

Closing down a card with a balance may be allowed by some companies, again card cannot be used again, interest will still be charged until the balance is paid off, but I think the card you have is a Cap 1 credit building card which is not allowed unless you enter into an AP Plan.

Thanks for this,

I will just cut it up and make payments over 6 months to clear the balance