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Does Closed Credit Card factor into UTIL % ??

Valued Member

Does Closed Credit Card factor into UTIL % ??

Had a credit card closed recently. It had a $2000.00 limit and currently only has a $250.00 remaining balance owed. On my one open credit card I have a $1500.00 limit carrying aprox. $700.00 and it seems to be the only thing that shows toward UTIL % on my CR. --- My Question Is: Does the closed account, with low util., factor toward my overall Credit Util % or is it just my open credit card account that hits my utilization number??

 

Would be thrilled with a response. Thanks!

4 REPLIES
Frequent Contributor

Re: Does Closed Credit Card factor into UTIL % ??

 


BOBBYJON wrote:

Had a credit card closed recently. It had a $2000.00 limit and currently only has a $250.00 remaining balance owed. On my one open credit card I have a $1500.00 limit carrying aprox. $700.00 and it seems to be the only thing that shows toward UTIL % on my CR. --- My Question Is: Does the closed account, with low util., factor toward my overall Credit Util % or is it just my open credit card account that hits my utilization number??

 

Would be thrilled with a response. Thanks!


No, it only counts towards your average age of accounts. UTIL uses only your opened revolving accounts. sorry. ;(

 


EQ Starting Score: 579 | TU Starting Score: 568
EQ Current Score: 650 | TU Current Score: 653
EQ Goal Score: 1000 | TU Goal Score: 1000


Moderator Emeritus

Re: Does Closed Credit Card factor into UTIL % ??

 


BOBBYJON wrote:

Had a credit card closed recently. It had a $2000.00 limit and currently only has a $250.00 remaining balance owed. On my one open credit card I have a $1500.00 limit carrying aprox. $700.00 and it seems to be the only thing that shows toward UTIL % on my CR. --- My Question Is: Does the closed account, with low util., factor toward my overall Credit Util % or is it just my open credit card account that hits my utilization number??

 

Would be thrilled with a response. Thanks!


 

It depends.

 

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.

 

 

From a BK years ago to:
9/09 EX pulled by lender 802
3/10 EQ- 800
6/10 TU -772

You can do the same thing with hard work

Credit Scoring 101
Common Abbreviations
Frequently Requested Threads
Whats In Your FICO Score

 

Valued Member

Re: Does Closed Credit Card factor into UTIL % ??

I viewed my Equifax report (I will pull the other two shortly) and it does show my credit limit ($2000.00) fom the closed card as well as my remaining balance on the card of just  couple hunderd dollars. However on the front of the credit report, under Revolving Accounts, it only shows my Credit to Debt Ratio (Util %) as "rounded up" to 80 % based on my one "open" credit card. So I am still a bit unsure as to whether or not my closed account is being factored into my overall Util %?!

 

Thanks so much for the informative responses! Appreciated!

 

 

Moderator Emeritus

Re: Does Closed Credit Card factor into UTIL % ??

 


BOBBYJON wrote:

I viewed my Equifax report (I will pull the other two shortly) and it does show my credit limit ($2000.00) fom the closed card as well as my remaining balance on the card of just  couple hunderd dollars. However on the front of the credit report, under Revolving Accounts, it only shows my Credit to Debt Ratio (Util %) as "rounded up" to 80 % based on my one "open" credit card. So I am still a bit unsure as to whether or not my closed account is being factored into my overall Util %?!

 

Thanks so much for the informative responses! Appreciated!

 

 


Not every account will show on every CR. I have differences between all three of mine. I have several loans that are on EQ and EX but not TU.

From a BK years ago to:
9/09 EX pulled by lender 802
3/10 EQ- 800
6/10 TU -772

You can do the same thing with hard work

Credit Scoring 101
Common Abbreviations
Frequently Requested Threads
Whats In Your FICO Score