Open credit card closed to purchases

[simyengi]

Currently in the middle of getting a mortgage. I have a credit card that's being managed by credit management company. It is closed to purchases but is reporting open to the bureaus. I just made a payment that would bring the balance to zero. I'm assuming the account will be reported as PAID IN FULL. How will this impact my score?

[azguy13]

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@simyengi wrote:

Currently in the middle of getting a mortgage. I have a credit card that's being managed by credit management company. It is closed to purchases but is reporting open to the bureaus. I just made a payment that would bring the balance to zero. I'm assuming the account will be reported as PAID IN FULL. How will this impact my score?

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If it remains open and it is your only credit card, there is a good chance your score can go down for reporting 0% UTL

[takeshi74]

We'd really need more details about the rest of your credit to begin to guess.  How are the balace and limit reporting for this card?

...and don't overlook the stickies:

http://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/Closing-Aged-Accounts-Yes-It-Is-Ok/m-p/15...

[pizzadude]

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@simyengi wrote:

Currently in the middle of getting a mortgage. I have a credit card that's being managed by credit management company. It is closed to purchases but is reporting open to the bureaus. I just made a payment that would bring the balance to zero. I'm assuming the account will be reported as PAID IN FULL. How will this impact my score?

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You need to be very careful with any major changes to your credit profie when you've in underwriting. 

If the account was reporting a credit limit and balance, but is closed after paying, then your revolving utilization will change, and possibly your FICO score.    This all depends on the before / after picture of your revolving utilization.

Almost every creditor that I've seen will close accounts in DMP after they're paid.

[simyengi]

Here you go:

Card #1: $851 balance; limit: $2400

Card #2: $20 balance; limit is $250

Card #3: $64 balance: limit is $650 (Capital One just increased limit from $350 to $650)

Card #4: $106 balance; limit is $500

Card just paid off: was $40 balance; $2900 limit

[simyengi]

BTW, this account have a negative impact in my credit report.