Will they close account after full payment?

D3xt3r5L4b

bradders1983 said:

Deleted_User said:

Maybe. Maybe not.

But keeping a balance on it purely to keep it open is mad.

Depends how they service that balance. If the balance was £35 yesterday, they then buy something for £35 today, and then pay £35 off tomorrow, it is a full balance payment each month and no interest is being accrued. 

 No it's not..
There's still a £35 balance on there accruing interest...

phillw

D3xt3r5L4b said:
 No it's not..

There's still a £35 balance on there accruing interest...

And most credit cards charge interest for new transactions from the time you make them, if there is an outstanding balance from the previous statement at the beginning of the month. If you pay the full statement balance every month then you get a month interest free.

MalMonroe

Even if you pay off the whole balance, they will NOT close the card unless you specifically ask them to. And even then, they will try to persuade you to keep the card. That's true of every credit card company. Unless you have a 0% credit card, interest is added every day. That's why Martin always says 'pay credit card balances off IN FULL every month'. Just pay it off and contact them and let them know you want to close it. Even when it's closed it will remain on your credit report for 6 years. Credit card companies don't want to close accounts, they lose money that way. They make loads of money when people default, too! They're not going to get rid of you.

funkycredit

^^^ Not true. Card companies are known to reduce limits / close accounts. There's a couple on this board this week! 

biggrizzd

Thanks for all the response. So I paid it all off and setup a dd to take full payment each month. What I've done is set the dd to come out of an account I will only use for the credit card. So whatever I spend on the card, I send that amount straight to the bank account ready for the dd at the end of the month.  
Not interested in a credit increase as that could mean temptation and hence big trouble for me (esp with the ps5 coming out soon!). All I want is to improve my credit rating. If they do happen to close my account as per my original fears then I'll update this post for those who may be interested. 
Thanks again all.
Stay safe.

bradders1983

D3xt3r5L4b said:

bradders1983 said:

Deleted_User said:

Maybe. Maybe not.

But keeping a balance on it purely to keep it open is mad.

Depends how they service that balance. If the balance was £35 yesterday, they then buy something for £35 today, and then pay £35 off tomorrow, it is a full balance payment each month and no interest is being accrued. 

 No it's not..
There's still a £35 balance on there accruing interest...

No there isnt. If they get a £35 payment and then you spend £35 again within the same cycle, its a new £35 balance and no interest is charged. I used to have to churn a card like this a few years ago and wasnt charged a penny of interest, for much bigger amounts than £35.