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IHMJack

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Close credit card accounts and leave the high outstanding balance on it will it help credit score?
Lets say I have 2 credit cards nearly maxed out with about $10,000 limit on each card and a bunch of other cards that adds up another $30,000 and most of those has very low outstanding balance on it. If I close the 2 card accounts that has the $10,000 high outstanding balance on it but I do NOT pay off the balance, I just keep the 10,000 outstanding debt on it but I keep making minimum monthly payments on it. If I do that, will I boost my credit utilization on my credit report to raise my credit score, once maybe once I close the 2 accounts the $20,000 outstanding balance will not be calculated on my credit report since I close both accounts?? Please tell me if doing this will work, help would be greatly appreciated! thank you in advance!

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When I closed my accounts long time ago they never demended the full balance to be paid, I just have to make minimum payment monthly

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That all sounds backwards.

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You can't remove debt by simply cloing the account.

Closing the high balance accounts will "Call the acoounts" meaning that you will now owe the entire balance right away, No more monthly payments.  So you would have to have $20K in hand to pay them off.  Closing those accounts would also lower your available credit, reduce the number of accounts you have and probably force the accounts into collections if not paid off, and reduce the age of your accounts,  all of which will have negitive effects on your score. 

Also realize that by only making the minimum monthly payments that you are paying a lot of interest.  Account balances that high usually have a mnimum payment of  1/2 to1 percent.  ($50-$100) meaning that you will be paying on these accounts for a minimum of 10-15 years earning interest for the creditor the whole time.   Check your statement, It has a section on it that will show pay off time and how much interest you will be paying if you only make minimum payments. The numbers can be astounding often twice or more than the original debt.

My rule of thumb is that high balance cards should have a minimum payment of 10% each month.  yes that would be around $1000 for each account every month.  If the payments are more than you can afford, then you are living beyond your means and need to seriously take a step back and see what you are doing to yourself. 

Leave all accounts open and pay them off.  That is the only way your going to get your score to go up.

Good luck  

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Closing a card with a balance will not help utilization.  Closed card with balances will report with 100% utilization because you no longer have access to the credit limit on the card.

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