Cancelling a credit card with a OS Balance

Random

Right, assuming I have a credit card with an OS balance on it that I want to cancel. Can I just tell the bank to cancel it and then continue to pay monthly payments to clear the balance?

Or will the full amount become required at once?

stepbar

Random wrote: »

Right, assuming I have a credit card with an OS balance on it that I want to cancel. Can I just tell the bank to cancel it and then continue to pay monthly payments to clear the balance?

Or will the full amount become required at once?

Unless the bank revoke a credit card (i.e take it back because you've been not making payments), they won't cancel same and allow you to pay it off like a personal loan. If you want to cancel you mist pay off the outstanding balance in full. You can do 3 things

A) Pay it off in full from Savings
Get a loan to pay the credit card off
C) Accelerate monthly repayments and just cut up (not cancel) the credit card now.

Random

I was thinking the same and thought others might say that.

I guess the "worry" is perhaps credit card fraud or something. You know? An active account but not using it sorta thing?

Paranoia?

Toots

Well if you're concerned, you could always give them a ring and ask them to put up a note on your account to say you're cutting up the card, but are continuing to pay it back. I'd imagine you're not the only one doing this at the moment.

Random

You know yourself .. .(or maybe not ..). No problems paying it back and what not but don't wanna go giving the banks concerns etc!

Toots

TBH, I don't think they'd be concerned if you simply stopped spending on it. If they do have any concerns about whether or not the card is still in your possession, they'll be quick enough to give you a call .

drunkmonkey

keep paying it back, keep increacing the credit limit (as big as they'll give you), keep them somewhere safe..
if the crap ever hits the fan you'll be in honolua bay before they even notice your missing..


Keyser Söze

Slice

I was able to cancel my AIB credit card with an outstanding balance but not with MBNA so probably best to check with the credit card provider...

Black Swan

Strongly recommend that you check with your credit card provider. Canceling a card before the debt is paid in full may adversely impact on your credit rating.

Random

I guess what I'm looking to do really is just report my card lost / stolen and have the account suspended .. then just not bother reactivating the replacement card and continue as normal paying it off.

Thanks for the feedback.

Toots

drunkmonkey wrote: »

keep paying it back, keep increacing the credit limit (as big as they'll give you), keep them somewhere safe..
if the crap ever hits the fan you'll be in honolua bay before they even notice your missing..


Keyser Söze

drunkmonkey I hope you're joking, and I'm also assuming you've read the forum charter before posting here?

Random

drunkmonkey wrote: »

keep paying it back, keep increacing the credit limit (as big as they'll give you), keep them somewhere safe..
if the crap ever hits the fan you'll be in honolua bay before they even notice your missing..


Keyser Söze

I didn't take it as serious advice .. but did note it down for future reference

Dabko

once paid off, make sure you cancel the card or the tax man will hit you next april for the 20.00 (is that what is costs now??)credit card tax.

Davy

Dabko wrote: »

next april for the 20.00 (is that what is costs now??)credit card tax.

€30 now, was €40.