I know that closing credit can ding your score by up to 60 points but I need to close it because I share the card with a sibling and we don't want our credit to be tied together. The balance is all mine and I will pay it off but I can't all at once. The limit is $5,000 and the card is almost maxed out.
I would like to close it and continue making payments until the balance is zero. The other option would be to take a loan from my parents (which I'd rather not) to pay off the balance and close it.
Is it that much worse to close a cc with an open balance than it is to close a cc with a zero balance? If I wanted to purchase a car or apply for a cc of my own, which of the two options would make my credit look worse? And how long might it take for your credit to go back up to normal?I wanted to add that for several reasons too long to explain there is NO WAY that I can keep the card open. I also cannot transfer the balance (although this would have been a great idea) since I do freelance work and I'm in between jobs right now. I haven't had steady work these past few months and I doubt I would be able to get a new credit card with at least a $5,000 limit to transfer the balance. What is the lesser of two evils - closing a credit card with a ZERO balance OR closing a credit card with an OPEN balance? Or is there not much difference?