If a consumer closes a credit card account, will the company continue to charge finance charges?

Question

If a consumer closes a credit card account, will the company continue to charge finance charges?

Answer 1

If there's a balance, yes.  It is a very bad idea to close a credit card account that still has a balance.  You lose all leverage since you are no longer a customer.

Always pay credit cards off in full before closing.  Be sure to close via letter and request written confirmation that the account is closed and 0 balance.  Keep your letter and the confirmation forever.

Answer 2

If your debt is settled and thus the amount owed on your puchases is ZERO, then that's it, but even if you tear up your card, if you owe them money, then your account is still "open" until the last cent is paid.

Answer 3

If you still owe the company and haven't paid the balance in full, yes.  Closing a credit card account doesn't mean that you don't have to pay back what you owe.  If that were the case, most people would charge charge charge and say, oh well, I'm closing the account so I don't have to pay you back.   What would happen is if you close it and you still owe money, you can't charge on the account anymore, but you have to pay back the money you owe at the terms agreed upon at the time of the purchase.  When the card is paid in full, then the account is considered closed.