Paying of CC Debt- Closed Accounts Or Open

[Anonymous]

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@pizzadude wrote:

When there is a balance and a credit limit reported,  FICO will include it in your utilization regardless of whether the account is closed or open.

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+1 on this, this is what Chase and BofA did way back when I was in a DMP.  The credit limits were still factored into my utilization so it didn't matter which ones I paid off first, open or closed.  I ended up paying down those with the higher APR first and my closed ones were the last to be paid because of that strategy.  

[TNTransplant]

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@pizzadude wrote:

When there is a balance and a credit limit reported,  FICO will include it in your utilization regardless of whether the account is closed or open.

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Very true.  I have about 14 revolving accounts, evenly split between open and closed.  Right now the closed ones are factoring into my utilization because all of them have the balance and the credit limit reporting.  I thought about this for quite a while, then realized the best option for me is to pay my OPEN accounts first.  If I paid off the closed ones first, once I reach a $0 balance the account would no longer factor into my overall available credit.  This would drastically raise my overall utilization on the remaining accounts.

For me, it made much more sense to pay off my open accounts first, as I am primarily interested in increasing my score. I can see where paying off high interest accounts would be a better option for some, while others may choose to pay off all closed accounts first.  I think it depends on what you're trying to accomplish. 

[AdPray123]

Ok everyone. I just checked my credit report for true credit and most of my accounts are showing balance and credit limit. I guess since it doesn't matter I should do the highest interest rate then work down. Or should I start at smallest balance?

[LS2982]

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@AdPray123 wrote:

Ok everyone. I just checked my credit report for true credit and most of my accounts are showing balance and credit limit. I guess since it doesn't matter I should do the highest interest rate then work down. Or should I start at smallest balance?

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List the cards, balances and APR please.

[AdPray123]

Thanks. I wasn't able to get all the info because one of the sites was down and I'm not home to get the statement.

Closed- Chase- Bal=$526 APR 25.94%

Closed- Chase- Bal= $1036 APR 25.94%

Open- Orchard Bank- Bal=$1086 APR 14.90%

Open- Target- Bal=$242 APR 22.9

Open Macys- Bal= $1332 APR=?

Open- Care Credit Bal= $1011 APR=?

[LS2982]

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@AdPray123 wrote:

Thanks. I wasn't able to get all the info because one of the sites was down and I'm not home to get the statement.

Closed- Chase- Bal=$526 APR 25.94%

Closed- Chase- Bal= $1036 APR 25.94%

Open- Orchard Bank- Bal=$1086 APR 14.90%

Open- Target- Bal=$242 APR 22.9

Open Macys- Bal= $1332 APR=?

Open- Care Credit Bal= $1011 APR=?

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I'd be PIF those Chase cards ASAP.

[AdPray123]

Great. Thank you so much.

[oracles]

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@Anonymous wrote:

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@pizzadude wrote:

When there is a balance and a credit limit reported,  FICO will include it in your utilization regardless of whether the account is closed or open.

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+1 on this, this is what Chase and BofA did way back when I was in a DMP.  The credit limits were still factored into my utilization so it didn't matter which ones I paid off first, open or closed.  I ended up paying down those with the higher APR first and my closed ones were the last to be paid because of that strategy.  

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you learn something new everyday, that is why i love coming to these boards. Thanks again pizza for the info. Since this is the case for OP, then definitely pay down your higher APRs first. Definitely saves you money

[AdPray123]

Thank you everyone!! Pizza is my favorite food and now I have some knowledge pizza. I paid Chase this morning! Whoooo whoooo!! 

[pizzadude]

Congrats on paying these cards off !! Those APRs were not good at all.

And from a FICO® perspective you'll want to keep a close eye on your utilization since the Chase cards will be out of the mix once they report paid.