Hi redkid99, and welcome to the myFICO forums! I wish it was under more pleasant circumstances, though.
redkid99 wrote:
Digital Federal Credit Union mass cancelled a ton of credit accounts on 2/8 and based it on negative changes to your credit. I pulled my credit and have had no negative changes or inquiries. I owe a lot of money to them, funny thing is part of my plan is to pay off ALL our cc debt this month. Can anyone tell me if I pay this off and it's closed by them how will it affect my credit, I'm thinking it's got to be WAY better than closed with a balance? It's my only VISA, so I think it's going to be a huge hit. I only have 3 other cards, target, capital one & zales. I had another one last year and they closed it due to inactivity. I'm feeling like a big loser now, I've worked so hard to fix my credit and I can't believe they did this!! I'm writing an appeal letter but have basically been told all decisions are final. Luckily they didn't shut down my husband so if we ever have an emergency.
HELP!!
While the card is reporting as closed with a balance, the credit line is still factored into your overall utilization. So, take a deep breath, and let it out. Closed with a balance isn't going to deep-six your credit score. Still, I'm glad to hear that you'll be able to pay it in full this month. Once you do, and it reports the zero balance, the credit line will be removed from the UTI calculations, and your good credit history with this card will continue to report for up to ten years. That is was closed by the credit grantor will have absolutely no impact at all on your credit score.
Because you still have a major bank card, Cap1, you won't take a score hit for 'not having a major bank card'. I'd predict that if you see any downward movement in your credit score at all, it'd be because of temporarily increased utilization (until all of your updated balances show). Once your cards are PIF'd, you'll probably see a net gain. If that was your highest limit card, or your go-to card, etc... and your reports are clean, there are plenty of other fish cards in the sea.
Just to be on the safe side, though, be sure to pull your three reports directly from all three CRAs (you're entitled to one free report per year), and make sure that there haven't been any changes.
