Do I Have to Pay Interest on a Closed Credit Card?

106 29
You may close a credit card in hopes to avoid interest charges, but you'll be unpleasantly surprised to see that plan fail. You will continue to be charged interest on a credit card balance, whether it’s open or closed, until the balance has been completely repaid.

The only thing that really changes when you close a credit card is your ability to make new purchases on the card. Closing the credit card doesn't stop the interest from accruing.

You're still responsible for making at least the minimum payment by the due date until the balance is paid in full.

If you want to avoid paying interest or reduce the amount of interest you're paying, consider transferring your balance to a credit card with a 0% balance transfer rate. Remember that you'll only get a temporary reduction in the interest rate. Once the introductory promotional period is over, you'll once again start receiving monthly interest charges.
Subscribe to our newsletter
Sign up here to get the latest news, updates and special offers delivered directly to your inbox.
You can unsubscribe at any time

Leave A Reply

Your email address will not be published.