Is your credit gain lowered when you dissolve a credit card? My daughter is in college and opened a low interest Citibank

My daughter is in college and opened a low interest Citibank VISA for college students not realize that the interest rate went up very elevated after 6 months. We are making more than minimum payments however I was wondering if we closed the account and contine to cause the payments would this damage or lower her credit rating or credit score in need the account being salaried off prior to closing it?

generally yes. credit agencies look for long histories. also if you drain the available credit for your daughter and increase her debt to credit ratio that would also decrease her score. so it depends, but commonly yes it is not a good idea to close accounts until you hold established a long history with it and it doesn't affect the debt to credit ratio.

No it won't damage her credit as long as the balance is salaried. However I would just keep it unequivocal and pay off the symmetry this will improve her credit rating - take the card away from her if have need of be. But the best thing to do is keep the picture open and pay it bad. You can find credit cards were the interest rate does not go up and you may be capable of perform a balance verbs from your old card at a lower rate here :

http://www.dgftaworld.net/credit/america...

It shouldn't, within fact if you pay stale the entire balance, it should raise your credit mark.
paying off the the entire card will always overt the flood gates to other credit card offers, use tell and always ask questions until that time signing up for a new card.

Hope that helps.

yes, pay it bad if you don't want it any longer or don't use them period. there are ways of achievement credit without using credit card to get you further within debt

Answer:
Far worse that a credit score ding would be if the Citibank VISA requires FULL wage at the time of closing the credit card account. If you close the account, and later they require full payment which you may be unable to kind, then this route would be even less desirable.

Beyond that, closing a credit card commentary rarely improves a credit evaluation. In fact, depending on the age of the account and the available credit on the card, it may enjoy a negative impact on the credit score. That's because "length of credit history" and "debt-to-available-credit ratio" are two of the governing five factors used to calculate credit score.

If you close an active credit card account (one beside a balance), you may cause these two factors to work against the credit gain because you will end the "history" of that account and you will do the "debt-to-available-credit ratio" to grow (if this is her only card, you may cause the ratio to flip far upside down because she will owe more than the amount of available credit... because you closed the available credit by closing the commentary... so, if she owes $500 on a $1000 credit limit, her ratio is 50%, but once you close the account, she will owe $500 on a $0 credit factor and her ratio will go through the roof... the lower the ratio, the better -- best to keep debt okay below 50% of available credit).

I would call Citibank VISA and ask for a lower APR after your 6-month introductory period expires. Don't expect anything on the first, second or third beckon. It takes persistence, but it is possible. Please see the following "Deflate Your Rate" report and see how others did this.

http://truthaboutcredit.org/truth.asp?ego...

Yes this will lower her credit rating. Simply put, subdivision of the credit score calculation is "how much of your available credit are you using." If she closes the rationalization, then her available credit will be zero, but she will still owe a be a foil for.

Also, if she pays the card off and keeps the rationalization open, it looks very favorable from a credit building standpoint. In certainty, she could graduate from college with close to a 700 credit score, which would put her within good position to get a low rate on her first sports car purchase after college.

If you are worried about her abusing the sketch, then simply keep the card within a safe place. Hope this helps!

There are many factors that own to be examined before automatically closing any account. One of the items that put together up your credit score, is length of credit history. If this is her oldest trade-line, then it can awfully well affect her score negatively. The other piece that she has to consider is how much available credit she has unequivocal versus how much she utilizing. If her used credit goes over 50% of total available credit, that can hurt her score.

Here is an article directly from Experian on the subject of this issue:
http://www.experian.com/ask_max/max06150...

Here is another article regarding simple things you can do to improve your rack up:
http://www.brightscore.com/education/imp...

If rate it off it will not be negeative credit but it may reflect slow payments. Check next to the conmpany some are able to lock the cards status to give you time to confine up on the payments before you decide to reverse it.

not at all, if she ever applies for a laon for a house or something she is better off closing adjectives credit card accts. it is counted as money against you, like if you have a $3000 credit curb they count it as that amount even if you have nothing charged on it, because it is available. So credit cards can work against you.

When you cancel a credit card or close the account, it WILL lower your gain.

A large portion of your credit score relates to the debt/credit ratio you hold, plus credit history. By removing a credit card you lose a portion of your history, and potential creditors are unable to judge what type of a costs history you have.

My suggestion is call Citybank and emergency that they lower the interest rate. Remind them that there are hundreds of other credit card companies out there after your business who are offering much smaller amount rates. If they won't lower your rate, then keep the card, but stop using it! Pay sour the debt and cut up the card.

But don't cancel the account! Keep it spread out so you will protect your credit history.

No effect. ON you credit report it would just say closed by consumer. That's not a doomed to failure thing, and make no effect on the over adjectives credit or the credit score. Former employee of the consumer credit industry.