finance charges
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finance charges
| Sat, 10-08-2005 - 11:10am |
Hi! I've been reading this board for several years and occasionally posting. I was in alot of debt-almost 30K-and just last month was able to pay it all off due to perseverance on my part(using only cash or debit)and some money that I inherited. Yesterday I get a bill in the mail from Discover for $140 for Finance charges even though I paid the entire balance off and haven't used the card in years!It says on the bill they can incur FC on old balances. I'm trying to buy a house that I love and wasn't able to get approved for a mortgage this summer because my credit score was 615. The loan officer told me that once I paid off the debt there would be no problem.I don't want 1 penny of debt on my credit report.Someone told me not to close CC accounts after you pay them off because it looks bad on the credit report. Should I call Discover and ask them to drop the FC? I paid them off a week before the bill was due. Or should I just pay the $140 and close the account?? Any thoughts are appreciated!

not sure when you paid off your discover, but even after you make that final payment to a CC bringing you balnce to 0, you still owe finance charges for that month until you paid it off.
I had this happen a few months ago. I had a small balance left on a card, like $60, and sent the payment in, on time. Got a bill a month later for $1.09 for a finance charge. I, too, was livid when I got it. I even ignored it, thinking that the payment crossed in the mail or something, and the following month I got another bill for $2something. So I finally paid it. I got another bill for a finance charge ON THE FINANCE CHARGE! I think its a scam, really, but sent a check the following month for $3, with the mindset that I paid above what the balance was, and they would have to send me a check for the difference, which they did. At least I didn't get another bill!
Kathy
LOL...I sincerely hope that the check total was less then the 37cent postage & cost of paper, ink & time to send it to you!
grrr at CCs.....
Teresa
http://www.affordingpickles.blogspot.com
The Discover thing is pretty typical.
What I find remarkable is that you could not get a mortgage with nearly $0 in debt and a 615 credit score. THAT is ludicrous. The only thing that might be stopping it is income.
The first thing I would do is find another mortgage lender...or two...me thinks you have an idiot.