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Valued Contributor
Uborrow-Upay
Posts: 2,710
Registered: ‎10-16-2008

Re: closing high balance acct vs keeping it open

[ Edited ]

dallasdad wrote:

thank you

 

can you tell me where that discussion is?

 


Well, it's kinda all over the place on these boards...one thing leads to another sometimes in these threads, and the discussion on one topic gets thrown in with another.

 

But here's a recent reply posted by one of our mods, Haulingthescoreup.  It's found in this thread.

 

"When a credit card is closed with a balance, it continues to factor into your total utilization, as long as neither the balance nor the credit limit is $0. So if (the bank) allows all these cards to continue having (and displaying) current CL's, closure won't affect revolving util or history. If they change the CL to $0, it will be ignored for calculating util, so you'll have to figure out what will happen to your overall util. If they get really nasty and start "chasing your balance", or reducing the CL each time a payment is made, making you continually maxed out until you have paid off, that will hurt your util until the balance reaches $0."

"This info comes directly from Barry, the myFICO admin. It sounds a bit illogical in a way, but it's meant to keep people from deliberately closing individual high-util cards to improve total util, so I suppose it makes sense." 

 

Hope this helps.

 

 

 

Oops!  I see HTSU already posted about this on this thread, sorry for being redundant.

Message Edited by Uborrow-Upay on 12-17-2009 04:05 AM

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