Do I have to keep paying interest on a closed credit card? This question is about Credit Cards

Do I have to keep paying interest on a closed credit card?

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This question is about Credit Cards

Oscar, Member

@sgtorellana • 03/11/20 This answer was first published on 02/26/20 and it was last updated on 03/11/20.For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.

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You do not need to pay interest on a closed credit card, unless there is still a balance on the account.

It is a common misconception that people think they get assessed interest on a closed card, because even though they've called to close the account, the credit card company has yet to close it before the existing balance is paid off. That's because the terms of your credit card agreement are still in effect, which means you're responsible for paying your bill. Therefore, interest will still be charged on your outstanding balance until it gets to zero.

Megan Kite @meg_kite9

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At this point, would it be better for the individual to not pay for 6 months, have the debt purchased by a collection company and then pay the collection company who will not be charging a compounding interest?

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