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howel2ce

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Paid off credit card- keep or close?
Earlier this month I paid off my credit card using money from my tax return and have not added any new charges. (It has been some time since I last used the card, having wanted to get it paid off). Today I received my statement and I owe $20.56 for interest charge on purchases and an annual fee. Is this normal? I was hoping that in paying off the card in its entirety that I would have one less bill to pay, which I really need since my hours at work were recently cut.

I have been hesitant to close the card since it is the oldest one, having had it for six years. My interest rate is 23.9% and I have been unsuccessful in getting a lower rate, despite having always paid my bill on time. My credit score took a hit this past year when my car payment was two months behind. Should I keep the card and continue to pay what I assume will be at least $20 a month so long as there are no new charges? Close the card? Any advice on what I should would be greatly appreciated.

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Closing account

Helpful to 2 out of 2 people

First, the interest is probably for the time difference from about last payment to present.  Pay in full now before it is due.  You should only be paying interest on what you owe now so it should be about 20 cents next month.  Do not close account.

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