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Registered: ‎07-14-2009
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Re: Citi closing my account

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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