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Will paying off a closed CC help score??

Valued Member

Will paying off a closed CC help score??

I have a CC from GEMB/Lowes that was closed by creditor about 1 yr ago. I have a balance of $1100 and would like to payoff. The card is also reporting 3-30 day lates from 2006 that I am waiting on GW response. Will I get any score increase by paying off? Or should I not payoff and benefit from the good pay history since 2006? I also have a good standing Kohl's card with a credit limit of $800, my balance is $650, should not payoff the closed Lowes and paydown the Kohl's? Looking for best option to increase score. 
Message 1 of 5
4 REPLIES
Contributor

Re: Will paying off a closed CC help score??

Will paying off a closed CC help score??  

 

Definately, it is killing your utilization

 

When you say not pay it off, you mean let it go to a collection agency? Because that would not be good for your credit score, good history or not.

 

Can't expect too many results on a GW to a creditor you still have an outstanding balance with on a closed account

Mar 09 Fico EQ 773 Fico TU 712 FROZEN Fako EX 699
Feb 09 Fico EQ 749 Fako TU 667 FROZEN Fako EX 676
Message 2 of 5
Valued Member

Re: Will paying off a closed CC help score??

Thanks Reots, what I meant was not payoff account fully, but continue to make monthly payments.

 

Message 3 of 5
New Member

Re: Will paying off a closed CC help score??

Remember, if you agree with the collection agency to pay off the account, they will "re-age" the account, meaning that the seven-year reporting time of deliquency on your report starts with 2009, not with 2006 as it originally was.  In talking with any collection agency, never admit that you owe any amount.  Tell them, that "If  I owe this amount, I want it put in writing that when I pay off the amount you will report to the bureaus that the account was paid in full, and paid satisfactorily."  They are to mail you this statement.  Never, never give them your checking account # in order that they may draw from your account; otherwise they might drain the account.  If you pay by check, always use a money order check.  Always keep notes as to who you spoke with and what was agreed (and the dates).

 

On the Kohl's account, you will see you score go up once you pay the balance down to $200.00. 

Message 4 of 5
Valued Member

Re: Will paying off a closed CC help score??

This account is only closed by creditor with $0 available credit line, it's not in collections. The account was closed by creditor about 1 yr ago and I've been current since 2006.
Message 5 of 5