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New Member
EricF
Posts: 3
Registered: ‎08-16-2007
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Closed credit cards with balances are viewed as available credit?

I've got a 6 year old closed Cap 1 credit card account with a balance of about 130 percent of available credit showing since they didn't write the balance off. The balance that is over my credit limit is from fees and interest.
 
The score is apparently viewing this closed credit card as being part of my available credit.
 
Why is that? Or is it supposed to be listed that way on my credit report?
 
Thanks
Moderator Emeritus
HappyDays
Posts: 7,326
Registered: ‎06-18-2007
0

Re: Closed credit cards with balances are viewed as available credit?

it doesn't matter if open or closed. ALL balance counts toward UTIL.
New Member
EricF
Posts: 3
Registered: ‎08-16-2007
0

Re: Closed credit cards with balances are viewed as available credit?

Arrggghh. Thanks for letting me know.
I can't afford to pay it off so I guess I have to get enough new unused credit available to me to offset it if I want to improve my score much before it drops off..
Moderator Emeritus
fused
Posts: 16,376
Registered: ‎03-12-2007
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Re: Closed credit cards with balances are viewed as available credit?



EricF wrote:
I've got a 6 year old closed Cap 1 credit card account with a balance of about 130 percent of available credit showing since they didn't write the balance off. The balance that is over my credit limit is from fees and interest.
 
The score is apparently viewing this closed credit card as being part of my available credit.
 
Why is that? Or is it supposed to be listed that way on my credit report?
 
Thanks


Closed CC accounts with balances do factor in utilization percentage calculations whereas closed CC accounts with $0 balances do not.
Credit Profile -
FICO 08 Scores (09-16-2014): EQ 824, EX 817, TU 822
All three scores were 850. Lost points for not having an open installment TL. So, BE WARNED!!!!!
Credit History: 26+ years ~ AAoA: 12 years ~ Util: 1% ~ Inqs: EX 1 (Amex 07-15-2014)

Regular Contributor
Rocket01
Posts: 226
Registered: ‎03-25-2007
0

Re: Closed credit cards with balances are viewed as available credit?

Eric,
I cant tell you why, but I can verify that I too had the same situation with my charged off Cap1 accts.
 
The amount owed counts (even on closed accounts) towards credit utilization.  In addition, It is also possible that you are getting a past due amount associated with these accounts as well, and thereby getting your score hit twice.  The simulator will show you both the amount of credit used and any past due amount that is being recorded.
 
In my situation, Cap1 charged off two cards, and still was reporting a balanced owed.  (There is no recourse, that I'm aware of, that would force them to show the amount owed as being $0 on a charged off account.)  I ultimately made a settlement with them, and that finally got the amount owed and past due down to $0 on both accounts.  The good news is that I got a good score increase.
 
On your closed Cap 1, the 7 years that it stays on your CRs is based on the first derogatory date.  So if you were good for a few years, then the 7 years starts when you first got a late.  Based on when it is going to fall off of your reports, you may want to settle with them or not.
 
If you do decide to settle, then you may be a good candidate for a PFD.  At any rate, your settlement may be about .50 to .60 on the dollar.
Good luck,
Rocket
Established Contributor
FICO_Focused
Posts: 905
Registered: ‎05-09-2007
0

Re: Closed credit cards with balances are viewed as available credit?



EricF wrote:
Arrggghh. Thanks for letting me know.
I can't afford to pay it off so I guess I have to get enough new unused credit available to me to offset it if I want to improve my score much before it drops off..
:smileyindifferent::smileyindifferent::smileyindifferent::smileyindifferent::smileyindifferent::smileyindifferent:

Make sure you don't fall back nto your old habits... New cards means more opportunities to do the same thing all over again.
 
Sorry to be the one that says it.
 
Rob
New Member
EricF
Posts: 3
Registered: ‎08-16-2007
0

Re: Closed credit cards with balances are viewed as available credit?

[ Edited ]
Thanks for everybody's input.
 
So if I settle will they reduce the amount showing on my credit report down to the settlement amount and then reduce it as I make payments? Do I just call their customer service number to get started?


Message Edited by EricF on 08-16-2007 02:20 PM
Moderator Emeritus
HappyDays
Posts: 7,326
Registered: ‎06-18-2007
0

Re: Closed credit cards with balances are viewed as available credit?



EricF wrote:
Thanks for everybody's input.
 
So if I settle will they reduce the amount showing on my credit report down to the settlement amount and then reduce it as I make payments? Do I just call their customer service number to get started?


Message Edited by EricF on 08-16-2007 02:20 PM

Cap1 usually never backs down.They also are not afraid to file for a judgment. Check your SOL as they haven't turned it over to a CA YET. Pay as much and as fast as you can. They will not remove it so you will need to live with it. I have never heard of them reducing the amount but I would try.
Regular Contributor
Rocket01
Posts: 226
Registered: ‎03-25-2007
0

Re: Closed credit cards with balances are viewed as available credit?

That will certainly start the process....  I was able to set up payment agreements that allowed me to pay off my debts over several payments.  Generally, I paid them off at .60 cents on the dollar, so I saved a lot.  It took a couple of months before my payoff hit my reports, so expect it to take some time.  You may want to check out the PFD information on the links at the head of the forum.  If Cap1 will go for it, then they will delete the TL from your credit report and it will be as though it never existed - no negatives at all on your report.  Others may be able to offer insight on PFD and Cap1.  You might want to post another topic on it.

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