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Established Member
Posts: 31
Registered: ‎05-26-2009
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Cancelled Card/Credit Utilization question

Hi, I asked this in another thread but I don't think I was clear. Hoping some of you wise folks can help me understand this better.

 

I'm another Wamu/Chace cancellee...the loss of my Chase card has reduced my total credit from $2950 to $750 (ouch).  I've got an outstanding balance on the Chase card of $1800 (CL was $2200). I have another CapOne card with a $750 limit and no balance.

 

If I throw $1000 at the Chase balance on 8/1 and the remaining $800 on 9/1, and keep a zero balance on my CapOne card, is that fast enough to mitigate the hit on my fico score?  I think this means that I have above 100% utilization right now ($750 worth of credit and an $1800 balance) and will continue to be over 100% until the Chase balance goes below $750 (right?) 

 

What I don't understand is when this will all "hit" my fico...does it hit at the statement date for the Chase card?  Will my fico still get battered up til the September closing date when Chase sees I'm PIF?  How long does it take to bounce back?

 

Much appreciated...this all seems like voodoo to me sometimes.

Established Contributor
Posts: 795
Registered: ‎04-13-2009
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Re: Cancelled Card/Credit Utilization question

With the loss of the Chase CC, your utilization jumped from 61% (1800/2950) to 240% (1800/750).  Even at 61% you were considered to have a high utilization, and it skyrocketed with the Chase closing.  As you pay it down over the next two months, your score will reflect the changes in utilization.  If you don't have any pressing credit needs over the next few months, you'll be fine, your utilization will be much improved in by September, and your scores will probably higher than what they were before the Chase account closed, since you will have a much better utilization.

 

As far as when it hits, I would guess the statement date, but again, if you don't have any pressing credit needs, it's a nonfactor.  

Established Member
Posts: 31
Registered: ‎05-26-2009
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Re: Cancelled Card/Credit Utilization question

Thank you very much for the speedy response!!

 

Fortunately we just had our vacation (hence the unusually high util on the Chase...their timing is awful!!) so no immediate credit needs.  Great to hear that the fico should jump back so fast, I was really worried that this was going to take forever to fix even after the payoff and that it could possibly hurt my relationship with CapOne.  I'm scared now that by using my credit it makes me a target for cancellation. :smileysad:

 

Would it be wise to apply for another credit card after Sept, once things have recovered?  Or does one need more "padding" between the crisis and the recovery?

Established Contributor
Posts: 795
Registered: ‎04-13-2009
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Re: Cancelled Card/Credit Utilization question

If your scores are in good shape, or will be after you get your utilization under control, you should look into joining a local or national credit union and applying for a CC with them. 
Senior Contributor
Posts: 4,267
Registered: ‎05-01-2008
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Re: Cancelled Card/Credit Utilization question

After you get the chase card paid off...along with the advice of going with a CU, you might want to call cap 1 & ask for a CLI.  How long have you had the Cap 1 card?  Have you ever asked for or been offered a CLI (in the last 6 mo's or so?)  Or to cover the whole gamut...ever been denied a cli from them?

 

Is the Cap 1 card the only open TL you have right now?



Starting Score: 02/2015 TU 709 - EQ 676 - EX 729
Current Score: 02/2015 TU 709 - EQ 676 - EX 729
Goal Score: 850

Bury me in the garden...last app 12.19.14

Established Contributor
Posts: 795
Registered: ‎04-13-2009
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Re: Cancelled Card/Credit Utilization question


BungalowMo wrote:

After you get the chase card paid off...along with the advice of going with a CU, you might want to call cap 1 & ask for a CLI.  How long have you had the Cap 1 card?  Have you ever asked for or been offered a CLI (in the last 6 mo's or so?)  Or to cover the whole gamut...ever been denied a cli from them?

 

Is the Cap 1 card the only open TL you have right now?


Cap1 is not currently accepting customer initiated CLI requests.

Established Member
Posts: 31
Registered: ‎05-26-2009
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Re: Cancelled Card/Credit Utilization question

Yes, CapOne is my only card now, which frankly makes me nervous.  I got it a little over a year ago at $300, they gave me a CLI to $750 a few months after that, and its stayed there.  I did see a post here that someone had luck with getting a CLI on a CapOne card using a backdoor number...is that worth a try?  Is there potential for it to hurt me somehow?

 

I've been thinking about joining a CU based on what I've read here.  I work for a University that has a CU that I can join, but their credit card services are handled by Elan, and I've read here that they are tough to get approved by.  My TU is 679 and EQ 650 as of today, no derogatory items except for some late payments from several years ago and all my accounts are in good standing...is it worth trying with Elan once the utilization rollercoaster evens out (I do hope JoeBJay is right and I'll come out slighly higher in the end!!)

Established Member
Posts: 31
Registered: ‎05-26-2009
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Re: Cancelled Card/Credit Utilization question

Oh...and not sure if TL means open credit card line or any line of credit... I do have a large student loan ($30K) that I (over)pay every month and on time, but those are my only debts.  My credit history is 9 years old.  No car, no mortgage (though I need to look at both in the coming 2 years, which is why I came here in the first place and am so thankful for all the info here! :smileyhappy: )
Established Contributor
Posts: 795
Registered: ‎04-13-2009
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Re: Cancelled Card/Credit Utilization question


mizvalentine wrote:

Yes, CapOne is my only card now, which frankly makes me nervous.  I got it a little over a year ago at $300, they gave me a CLI to $750 a few months after that, and its stayed there.  I did see a post here that someone had luck with getting a CLI on a CapOne card using a backdoor number...is that worth a try?  Is there potential for it to hurt me somehow?

 

I've been thinking about joining a CU based on what I've read here.  I work for a University that has a CU that I can join, but their credit card services are handled by Elan, and I've read here that they are tough to get approved by.  My TU is 679 and EQ 650 as of today, no derogatory items except for some late payments from several years ago and all my accounts are in good standing...is it worth trying with Elan once the utilization rollercoaster evens out (I do hope JoeBJay is right and I'll come out slighly higher in the end!!)


It has happened before, but not recently.  I know personally that Cap1 has not accepted customer initiated CLIs since at least April, and I used a backdoor number.  They actually allowed me to apply before saying I was declined and the notice would be sent in the mail.  The notice gave one reason for the denial: Cap1 is not currently accepting customer initiated CLIs.  They didn't even pull my reports when I asked for the request, and any customer initiated CLI will involve at least a soft credit pull, if not a hard pull.  Judging from recent posts, they telling people up front that they aren't taking customer initiated CLI requests, even after threatening to close the account.  

 

If you're at 679 with 61% utilization, you should easily crack 700 after you pay it down.  You can request goodwill (GW) on previous lates.  If those lates are only 30 day lates that are older than two years, then their effect on your credit score is inconsequential.  If they're worse, then they may be affecting your score to some degree.  You can read through the Goodwill Primer thread for more info on the GW process.  

Established Member
Posts: 31
Registered: ‎05-26-2009
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Re: Cancelled Card/Credit Utilization question

Thank you! I have always wondered about those lates and what could be done...there are some real bad ones from 2004 (120+ days on my student loan; got laid off and then was in the hospital w/out insurance...fun times!).  I'll read through the primer you posted to see what I should do.  Much appreciated for the advice and the sense of hope!!
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