Legal Question in Credit and Debt Law in Washington
Credit Card
We rec'd a communication from our credit card company indicating they were raising rates for some unknown reason. We have a balance on the card but can lock the rate at the present rate while we pay it off. If we cancel the card, will that act and/or the fact that there is debt outside of a credit card arrangement negatively effect our credit rating? Thank you.
1 Answer from Attorneys
Re: Credit Card
A change in the terms of the credit card agreement, such as a change in interest rates, can provide you with a reason to cancel the card. Often your credit report will indicate "account closed by consumer." You should not have any negative impact on your credit, although one's credit score and report depends on a multitude of factors such as available credit lines and payment history, etc.
You may want to pay the balance off and use a different card with a lower rate.
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