Closed CC accounts with balances do factor in utilization percentage calculations whereas closed CC accounts with $0 balances do not.
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
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..
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.
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