Question: Can I Close a Credit Card With a Balance?
Answer: Yes. You can close a credit card that still has a balance. In some instances, you this could work for you in the long run. For example, if your credit card issuer sends an advance notice of an interest rate increase, you might close your credit card to opt-out of the higher interest rate. Since credit card issuers are required to notify you 45 days in advance of the interest rate increase, it's better to pay off the balance or transfer it to another credit card rather than close it.
Closing a credit card could hurt your credit score. When your credit score is calculated, it considers the amount of your credit card balance relative to your credit limit. A closed credit card usually as a $0 credit limit, so the credit scoring calculation treats it as a maxed out credit card.
If you close a credit card with a balance, you'll still be charged interest until you pay the balance off.
