05-13-2010 03:37 PM
I need to edit my original post. This is what I said then:
I can't say exactly how much it will hurt you but it probably will since it is being closed with a balance still due. That balance will still factor into your utilization plus you are losing the credit limit. I said that without knowing for certain whether the CL would remain or not.
How this account being closed will affect you depends on several things:
1. If a closed account continues to report the original credit limit, then this CL of the closed account will be used in the utilization calculation.
2. If a closed account is reporting a zero CL, even if there is a balance on the CC, the card will not be included in the calculation.
3. If a closed account reports a CL that is equal to the balance (balance chasing), then this will be included in the calculation. This is the worst-case scenario with regard to utilization.
So..........will you retain the CL on this card?
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