I canceled my most of credit cards with balance.

[murat]

I canceled my almost all cc with balance.I owe so much money thats why I have a bad credit.I have no beddies but maxed out.I m not using any credit untill pay them off.How this effect my credit now?

[gdale6]

---

@murat wrote:
I canceled my almost all cc with balance.I owe so much money thats why I have a bad credit.I have no beddies but maxed out.I m not using any credit untill pay them off.How this effect my credit now?

---

You just trashed it, your util is going to shoot up with no corresponding CL to offset.

[Involver]

Yeah this is going to inflict serious damage.

Were you not in a position to pay them down over time with them open, or is this the best way you determined to avoid the temptation to continue spending on them?

[murat]

So it means my credit is going to get worst?

[john398]

---

@gdale6 wrote:

---

@murat wrote:
I canceled my almost all cc with balance.I owe so much money thats why I have a bad credit.I have no beddies but maxed out.I m not using any credit untill pay them off.How this effect my credit now?

---

You just trashed it, your util is going to shoot up with no corresponding CL to offset.

---

not true if you read the stickly about closing cards, oh wait the sticky is gone

anyway:

- If a closed CC account with a balance continues to report the original credit limit, then both the balance and the CL of the closed account will be used in the utilization calculations.

- If a closed CC account is reporting a zero CL, even if there is a balance on the CC, the card will not be included in the calculations.

- If a closed CC account is reporting a non-zero CL but has a zero balance, the card will not be included in the calculations.

- If a closed account reports a CL that is equal to the balance (balance chasing), then this will be included in the calculations.  This is the worst-case scenario with regard to utilization.

[xXIDaShizIXx]

---

@murat wrote:
So it means my credit is going to get worst?

---

Yes, remarkably worse. How much debt do you have? How much credit did you have? And how much credit do you have available to you now (the limits, not your balances)?

[gdale6]

---

@john398 wrote:

---

@gdale6 wrote:

---

@murat wrote:
I canceled my almost all cc with balance.I owe so much money thats why I have a bad credit.I have no beddies but maxed out.I m not using any credit untill pay them off.How this effect my credit now?

---

You just trashed it, your util is going to shoot up with no corresponding CL to offset.

---

not true if you read the stickly about closing cards, oh wait the sticky is gone

anyway:

- If a closed CC account with a balance continues to report the original credit limit, then both the balance and the CL of the closed account will be used in the utilization calculations.

- If a closed CC account is reporting a zero CL, even if there is a balance on the CC, the card will not be included in the calculations.

- If a closed CC account is reporting a non-zero CL but has a zero balance, the card will not be included in the calculations.

- If a closed account reports a CL that is equal to the balance (balance chasing), then this will be included in the calculations.  This is the worst-case scenario with regard to utilization.

---

If they report the CL the OP may not have inflicted as much on self but I have never had a CL report when I stupidly closed a card with a balance in the past. AAoA is irrelevant in this as it will stay around as you say for 10 yrs post close. The balance was always incl in my util till it was paid off.

[Smug]

You need to ask questions before you do something like this...

[starry1]

I'm sorry, but that was a pretty big mistake.  Your best option would have been to cut up all of your cards if you didn't have the willpower to stop spending.  Cutting them up would have prevented use while you paid them down.

Now you're in for the long haul on rebuilding.  As your balances start to come down, you will need to get more cards to build positive history.

[Dw4250]

I think the OP (mistakenly) believed by closing the cards, he would stem the bleeding as they could not continue to charge interest. Unfortunately if you read terms and conditions, the bank can continue to charge interest as long as you owe them a balance.

I feel for the OP as he was obviously not well informed prior to making this decision. As far as next steps, he needs to pay off the debt as quickly as possible (which unfortunately was the same option available before he closed the cards, although now he holds no leverage).