Moving forward, some questions.

[FixMyCredit1992]

1. I know carrying a small (under 9% of CL) balance on A credit card helps to raise your score, but is this for one credit card, or all  credit cards?

2. I paid off my Victoria's Secret Credit card, how long does Commenity keep accounts open without a charge, or should I charge something every 6 months, or just close the account, since I don't plan on using it anymore? 

I've read Fico does not lower your AAOA on closed accounts, but wanted some clarification.

[tcbofade]

Pay all cards off to zero except for one card.  Under 9% on that ONE card will help maximize your score.

YMMV with Comenity, but it you want the line kept open, you should probably purchase something small every six months.

[FixMyCredit1992]

I'm reading mixed answers that closing a account ruins your score, but some people say fico scores the UTL of closed accounts, too.

[tcbofade]

If you close the account, your util ratio WILL be affected.  Your average age of accounts will NOT be affected.  Both of those affect your scoring.

I would suggest (again) leaving it open, and at a zero balance...but remember to make a small purchase every six months or so to keep the account open.

[FixMyCredit1992]

I thought fico scores the UTL of closed accounts?

[tcbofade]

No.  Once the account is closed, there is no available credit, therefore, no available utilization.

The age of the account will remain whatever it was when you closed it, so that affect isn't as immediate.

[longtimelurker]

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@tcbofade wrote:

No.  Once the account is closed, there is no available credit, therefore, no available utilization.

The age of the account will remain whatever it was when you closed it, so that affect isn't as immediate.

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Right, the Average Ages of Accounts includes both open and closed accounts.  The "hit" happens when the closed accounts stop reporting, usually about 10 years after closure, although it can be sooner or later.   We worry less about this because in 10 years the credit situation should be different!

[mongstradamus]

Utilization is based on open accounts. AAOA is based off of open and closed accounts that were closed within ten years.