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$0 balance, $0 available - should I close

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oracles
Valued Contributor

Re: $0 balance, $0 available - should I close

Hi Abetrman and welcome to the forums

 

First- 

 

Weather you close the account or not, the lates are going to exist for 7 - 7.5 years. 

 

I would not close the account because it is helping your Average Age of Accounts. If you close it, you will feel the effect not now but after 10 years.  The account will come off of your report and you will take a hit. Now I would say that if you were able to get more credit cards, in 10 years the cards will be 10 years old and therefore it will not matter too much. However seeing the predicament you are currently in, I don't think you will be able to get additional cards at this moment. When you are in a better position to get better cards in the future, you want this account open to dilute the new credit cards. The new credit cards will bring down your average age of accounts and with having this card continuing to gain history, it will offset the new cards somewhat. 

 

Keep it open, it is only helping you.

 

Second-

 

The card that is close and have a balance of $3264, is killing your score. Because it is closed, the credit limit is not being included in your total credit limit overall, therefore you have a tremendously high util%.

 

From doing the math with what you have given us

 

total credit limits = 10,300

total balance =       11,235

 

util is over 100%, this is because the $5295 limit on the closed card is not included in your util%

 

You need to decide what is more important to you. Is your fico score getting better soon a priority or is saving money the priority.

 

If it is to save money, than pay off the card with the highest apr first. Make the minimums on all the other cards and pay off the card with the highest apr first, and then repeat.

 

If it is to get a better score, you need to first pay off the card that closed. It is killing your overall util% and individual credit card util%.

 

hope this helped and keep us posted

Message 11 of 14
Anonymous
Not applicable

Re: $0 balance, $0 available - should I close

oracles,

 

My current FCR by EXP says I have 34.5% available. Not sure how that is calculated, but either way it is not what it needs to be. This is probably where I will focus and try to pay down on the others as I can. This is my only non-store CC (if that makes sense). I would like to get things back in order so I can get one that I can use in the cases of emergency, not just to buy carpet:-)

 

As far as the CFNA goes, I let it be and hope they don't close it for whatever reason.

 

I thank you all for your responses..In a few short conversations, my understanding has increased. I am sure you all will see me around. Posting updates as they may.

Message 12 of 14
oracles
Valued Contributor

Re: $0 balance, $0 available - should I close

 As far as the 34.5% available, do you have any other credit cards?

 

What else is on your report?  With the info you gave, as i stated before, your util would be over 100%.

 

Is the closed credit card reporting on EX?

 

If you would like to give us more info regarding your reports, maybe we can help you some more.

 

Definitely keep us posted and continue to ask any questions you may have.
Message 13 of 14
Anonymous
Not applicable

Re: $0 balance, $0 available - should I close

Hey Oracles...sorry for the late response...each of the amounts from the previous post were my remaing credit cards. the cards are consumer cards not visa or anything like that. home depot, rooms to go, best buy, and a couple others like that.

 

the closed card is reporting..it reads like this:

 

Account Type Credit Card - Revolving Terms    

 Balance $3,254.00

Date Opened 7/1/2004    

Account Status Closed        

Mo. Payment $82.00

Past Due Payment Status Current, was past due 30 days five times        

High Balance $5,937.00        

Limit $5,295.00        

Terms Revolving        

Comments Credit line closed-grantor request-reported by subscriber

Message 14 of 14
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