[Michaela]

I have a buckle card that is the third oldest thing on my credit, almost 5 years. I have another card that is 5 years as well as a vehicle loan but it will be paid off in March 2024.

My question is, I could apply for the hardship program with buckle and get it paid off with no interest being charged, but it would close my account.

My current interest rate is 29.74% and they are going to be raising it to 31.9% due to the economy.

Is it worth it to close my account so that I can pay it off without at least half of my payment each month going to interest or should I just keep paying on it as I have since it is one of my oldest accounts. I’m torn on what to do.

[Christine]

If you close it your credit score will drop due to credit age and credit utilization changes. What is your balance on the card and what do you currently pay a month on it?

Yes, the interest is high but most store cards are which is why you should not keep large balances on them, use them to get the rewards and stuff but only use them in amounts you can pay off the same or next month unless it’s an emergency. Have you thought about a balance transfer or debt consolidation instead of closing it?

Is it possible to pay more on it every month then what you already do? During the first year of Covid I had to do a hardship on 2 of my cards and my credit scores tanked and is just now getting back to where it was before closing them due to hardship and I’m still paying one of them off. So yes the hardship plans can be helpful if it’s a real need but understand the changes it will make before you do it.

[Rita]

Sometimes you need to take a hit to your credit to help dig yourself out from the debt and make better progress for the long term.

That interest rate is crazy!

[Wendy]

Do you use the Buckle card still?

That is one of the highest store card rates I’ve seen (I’m a finance coach). I think closing it makes the most sense and if you still shop there, use a debit card.

[Kelsey]

I would personally take the hit if it meant getting out of debt with less interest.

[Author]

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