Hello,

I recently applied for a personal loan through my local credit union. I wanted to barrow $15,000. They asked me the reason I wanted the money and I told them it was for the purpose of paying off existing credit card debt which was true. I had 2 credit cards with 2 other banks totaling about $15,000 and needed to pay them off since the interest rates were crazy on them. I was losing my a**. They asked me which credit cards I wanted to pay off and I told them (i guess they were looking at my credit while I was on the phone with them). They called me back 2 days later and said I was approved but that I had to meet certain criteria which was this: I had to close the 2 credit card accounts that they were going to apply the money to. I said ok since this was my only chance to finally get this debt taken care of. They offered me 12% on the loan which was better than the 29.99% on the other 2 cards. One card was with Chase ($4000 owed) and the other with Wells Fargo ($11,400 owed).

Well it ended up being that they didn't actually pay the 2 cards off all the way and left a couple hundred dollars balance on both of them since I owed a bit over the $15,000. Fine.

I went down to sign the loan docs they had me sign two forms (one for each bank) that stated that I wished to close the credit card accounts once they were paid off. Ok.

4 days later the Chase card was closed even though there was still a $200 balance on it. Fine.

The Wells Fargo card still has not been closed and it's been 2 months. I realize that different banks operate differently. I called Wells Fargo yesterday and they verified that my credit card was still active. Ok.

My question is this: Will Wells Fargo close the account once it reaches a zero balance? I don't really want to close this account because it's my oldest one with 11 years history. It would negatively effect my credit score if closed. If I keep a balance on it and don't pay it off all the way will it stay open? This would benefit me.

My other question: If the Wells Fargo card is left active and I used the card for a purchase in the future will the lender be notified of this? Will they continue monitoring the activity on these cards since it was part of their "criteria"? Would I be "punished"? Is this a common scenario? I'm just not privy to all lender/bank practices and would love some info on this.

Thanks for any help.

I can't imagine that a bank or credit union has the time and resources to "monitor" your card to see if it was/is closed.

You're story is almost exactly like mine. I just haven't made the call to try for the bank loan yet.

WF will probably keep the card active, but the lender will see it if thy monitor your credit, some do some don't

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It's doubtful that your credit union will monitor those cards. You might want to check your loan agreement to see if there are any penalties for not closing the accounts. Also look closely at the documents you signed agreeing to close the accounts.