Opinion - pay off and close or close then pay off??

[malamute]

Hi All,

A friend has a credit card that they want to pay off and they no longer want the card.

Is it "best" to:

chop the card and pay it off and then close when the balance hits zero ?

ask the credit card company to close the account so that the card cannot be used for purchased and that the balance can only be reduced with payments. Interest payments are the concern it is just that they don't want the temptation of using it whilst its being paid off but concerned that it may be a negative mark on the credit file during they time its being paid off.

Thanks!

[mgfboy]

Re: Opinion - pay off and close or close then pay off??

I personally would cut the card in half and set up a fixed figure ddi to pay it off.

You never know when their might be an emergency that you might need it for, but if you don't actually have the card it stops you making easy purchases.

[malamute]

Re: Opinion - pay off and close or close then pay off??

I personally would cut the card in half and set up a fixed figure ddi to pay it off.

You never know when their might be an emergancy that you might need it for, but if you dont actually have the card it stops you making easy purchases.

That's what I thought. Plus I read that its the un used credit as a proportion of your available credit that can improve your credit rating.

thanks :-)