What does Opting out of a CC mean??

iVillage Member
Registered: 08-15-2004
What does Opting out of a CC mean??
3
Wed, 01-14-2009 - 9:49pm

I've seen the term "opted out" in regards to a CC.

Avatar for cl_phocid
iVillage Member
Registered: 03-26-2003
Wed, 01-14-2009 - 10:55pm
When a cc company is going to change the terms of your agreement by raising the interest rate, they will notify you and give you the option of "opting out." Basically you need to write to them and tell them that you do not accept the new terms. They will then close your account and allow you to continue paying the balance under the old terms.

All my best,
Danni
cl-phocid, Debt Support Group



All my best,
Danni

iVillage Member
Registered: 08-15-2004
Thu, 01-15-2009 - 6:39am

Can you opt out at any time or just when the terms change on a card?

Avatar for cl_phocid
iVillage Member
Registered: 03-26-2003
Thu, 01-15-2009 - 9:52am
You can choose to close your credit card account at any point, whether you opt our or simply contact them about closing the account. It affects your credit the same - it will show that the account was closed at consumer's request. However, your "available balance" will be zero, but your balance will remain whatever your balance remains, so it will drop your score since it will mess with your overall ratio of credit used-to-credit available.

All my best,
Danni
cl-phocid, Debt Support Group



All my best,
Danni