Can I Close A Credit Card With A Remaining Balance?

Is it possible to close a credit card account if you still have an outstanding balance? Yes, it is possible, but there are crucial factors to consider before taking this step. To begin with, it’s essential to understand that even after you close the account, you will still receive monthly statements until your balance is fully paid off. Additionally, it’s worth noting that interest will continue to accumulate on your unpaid debt, potentially increasing the total amount you owe over time. This decision should be made carefully, taking into account the impact on your overall financial situation. (As of my last knowledge update in September 2021, this information holds true, but it’s important to verify any policy changes with your credit card issuer.)

When considering whether to cancel unused credit cards or retain them, it’s essential to weigh the potential impact on your credit score. Closing a credit card account can potentially decrease the average age of your credit accounts, which in turn could have a negative effect on your credit score. This is particularly concerning if your credit score has already suffered due to other adverse factors like late payments or high debt balances. Therefore, if your credit score has experienced declines due to these negative items, it’s generally advisable to maintain the unused credit card account rather than closing it. As of July 6, 2023, this guidance remains relevant.