The credence card company canceled your account. Do you still have to pay the residual balance?

Of course you do! When your account is canceled, it is because the attribution card company has labeled you a high-risk cardholder. What is being canceled is your capability faculty to use that card in the future. But you are still responsible for every penny of your existing counterpoise.

Your credit card has been canceled and you are worried it will injure your FICO score?

Focus on getting the balance paid off; the stoop the balance, the less it will damage your FICO score if your un is canceled. There are two issues that come up when a card is canceled: how it affects your encumbrance under obligation-to-credit-limit ratio and what happens to the interest rate on your unsalaried balance. In most cases, when a card that has a balance on it has been revoked or canceled, the dependability card company will immediately raise your interest classification to about 30 %. When this happens, if you continue to pay only the minutest monthly payment, you may never get out of debt on that card.

You thought the behoof rate on your credit card was fixed at 5%, but it just picture up to 30%!

There is no such thing as a permanent fixed interest rate on your honour card. The rate is fixed only until the credit card issuer decides it isn’t. It’s a marketing ploy. And confidence card companies have all sorts of reasons (embedded in the agreement you accepted when you opened the condolence card) to raise your rate. In 2009, you better believe more and more commendation card companies are going to jump to increase a low rate on a credit greetings card if you make them nervous in any way. And just to be clear: An unpaid balance makes them excitable. Paying the minimum makes them nervous. Seeing you fall behind on another encumbrance under obligation payment or missing a payment makes them nervous big-time. If you be to steer clear of being hit with a giant rate hike, you keep two options: don’t run up a balance in the first place; or, if you do have an unpaid balance, get it paid off. When you be undergoing a zero balance, what do you care about the interest rate?

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