Author Topic: Closing a credit card with a credit balance  (Read 4372 times)

themagicman

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Closing a credit card with a credit balance
« on: November 19, 2014, 03:25:02 PM »
Has anyone here ever closed a credit card with a credit balance? When I chanced insurance providers they refunded a portion of my premium back to my card. My credit card has sense changed my rewards (No more 5% back a restaurants! :( )and I am wanting to close the account. If I were to close it now, would they mail me a check for the balance (About $110) or would I just lose it?

Is there anyway for me to get rid of the balance other than just spending it?

GizmoTX

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Re: Closing a credit card with a credit balance
« Reply #1 on: November 19, 2014, 03:54:56 PM »
Spend it. Also make sure you have cashed out all your reward points.
Unless you are facing an annual fee deadline, I'd zero out the account & replace it with another CC before canceling it.

Catbert

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Re: Closing a credit card with a credit balance
« Reply #2 on: November 19, 2014, 04:19:59 PM »
In this case they'll send you a check.  If your credit balance was due to some credit card program (e.g., cashing in points or bonus due to some sort of spending game) then I'd be concerned with it disappears. 

LifestyleDeflation

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Re: Closing a credit card with a credit balance
« Reply #3 on: November 19, 2014, 07:41:36 PM »
Side-note: you're probably better off paying off the card and leaving it somewhere safe. Unless it has an annual fee, there's no benefit to closing it and keeping it open will improve your credit score over time.

surfhb

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Re: Closing a credit card with a credit balance
« Reply #4 on: November 20, 2014, 09:10:24 AM »
Yeah....if there's no fee, leave it open

johnny847

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Re: Closing a credit card with a credit balance
« Reply #5 on: November 20, 2014, 09:32:37 AM »
This is the US Bank Cash+ Card yes? The one with no annual fee?

Just keep it open, as others have said.

frugaliknowit

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Re: Closing a credit card with a credit balance
« Reply #6 on: November 20, 2014, 10:14:23 AM »
Much easier if you just spend the credit balance than wait for a check.

rmendpara

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Re: Closing a credit card with a credit balance
« Reply #7 on: November 20, 2014, 10:58:03 AM »
Has anyone here ever closed a credit card with a credit balance? When I chanced insurance providers they refunded a portion of my premium back to my card. My credit card has sense changed my rewards (No more 5% back a restaurants! :( )and I am wanting to close the account. If I were to close it now, would they mail me a check for the balance (About $110) or would I just lose it?

Is there anyway for me to get rid of the balance other than just spending it?

The easiest way is to spend the money, but obviously it's hard to be precise. If you regularly spend on credit cards, then just spend until you get back to zero, or even slightly above. Then, make a payment and close the account.

Others have mentioned paying it off and keeping the card for credit score benefits, which is factually true; however, I prefer not to have cards lying around and also simply don't want to keep track of it.

The hit to your credit will happen, although I don't think it should be significant or even lasting. Assuming with your other card(s), you can keep your credit utilization fairly low, it's very unlikely the credit score hit will move you down from a prime borrower.

Up to you... simplicity vs. a higher score. No wrong way to do it.

Prairie Stash

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Re: Closing a credit card with a credit balance
« Reply #8 on: November 20, 2014, 12:18:19 PM »
If you know the amount its easy, tell the cashier the exact amount you want to spend on the card. Then finish the payment with another card. If you don't know the amount then check the statement or phone and ask.

themagicman

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Re: Closing a credit card with a credit balance
« Reply #9 on: November 20, 2014, 12:48:35 PM »
Thank you all for the help!

There is no annual fee, the reason I was wanting to close it is just to not have to worry about it. Accidentally something being charged (Maybe something I had set up as recurring and forgot to change) and me not knowing to go in and pay the bill.

It is not one of my oldest cards and closing it would not change my utilization ratio (Less than 1% usually), so I did not see any harm in closing it for the peace of mind.


This is the US Bank Cash+ Card yes? The one with no annual fee?

Just keep it open, as others have said.
Yeah, that is the one! Sad to see it go!

Dicey

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Re: Closing a credit card with a credit balance
« Reply #10 on: November 20, 2014, 01:15:22 PM »
If there is an option to restrict charges to the card, it might be worth it to keep the account open. Personally, I've closed a number of cards and I didn't die. If you're not going to need credit in the near future, the hit from closing it won't last long. So, I guess I just spoke out of both sides of my mouth, didn't I? Absent annual fee, it's a coin toss. Do whatever works for you.

As to the balance, they send you a check. Piece of cake. If you wish, spend close to the number and then let them enjoy the expense of cutting you a check for anything leftover. You're mustachian, you don't need the money right away anyway.
« Last Edit: November 20, 2014, 01:18:19 PM by Diane C »

GumbyPickles

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Re: Closing a credit card with a credit balance
« Reply #11 on: November 20, 2014, 02:17:13 PM »
Find a replacement for the 5% Resturants ???

I am scrambling to find something, but best thing I've found is the AARP Chase VISA w/ 3% Rest. :(

themagicman

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Re: Closing a credit card with a credit balance
« Reply #12 on: November 20, 2014, 02:33:28 PM »
Find a replacement for the 5% Resturants ???

I am scrambling to find something, but best thing I've found is the AARP Chase VISA w/ 3% Rest. :(

I am in the same boat. I can't find anything more than 3%. Resturants are one of our biggest expenses, so I am really trying to find a 5% replacement. If anyone knows any, please chime in!

johnny847

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Re: Closing a credit card with a credit balance
« Reply #13 on: November 20, 2014, 03:30:46 PM »
Find a replacement for the 5% Resturants ???

I am scrambling to find something, but best thing I've found is the AARP Chase VISA w/ 3% Rest. :(

I am in the same boat. I can't find anything more than 3%. Resturants are one of our biggest expenses, so I am really trying to find a 5% replacement. If anyone knows any, please chime in!
Well if you're going to open a new card to replace this one, that's an argument to keep this one open. A new card would lower your average age of account and produce an inquiry (though the inquiry isn't really a big concern).

How good is the alert system for US Bank? With my BoA card, I have sock drawer'd it, so I set alerts to tell me if there are any charges to my card.
Of course keeping it open is far more important for me than for you, as it's my oldest card, and it's only 15 months old.