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New Contributor
jru577
Posts: 63
Registered: ‎06-30-2007
0

? about utilization...

does the CL and remaining balance factor into utilization? I have one closed chase with a zero balance but it had a 2k limit. I have another closed chase with a 3700 balance and a 5800 limit. I also have one new amex with a 2k limit and zero balance.

Is my uti factored using the limits of the closed cards? or just open cards? how does this work?? I read some other uti threads and this is still fuzzy.

thanks!

judy
Moderator Emeritus
fused
Posts: 16,373
Registered: ‎03-12-2007
0

Re: ? about utilization...



jru577 wrote:
does the CL and remaining balance factor into utilization? I have one closed chase with a zero balance but it had a 2k limit. I have another closed chase with a 3700 balance and a 5800 limit. I also have one new amex with a 2k limit and zero balance.

Is my uti factored using the limits of the closed cards? or just open cards? how does this work?? I read some other uti threads and this is still fuzzy.

thanks!

judy

Closed CCs with balances do factor in util% calculations and closed CC's with $0 balances do not.
Credit Profile -
FICO 08 Scores (11-08-2014): EQ 818, 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

Frequent Contributor
db23
Posts: 342
Registered: ‎06-16-2007
0

Re: ? about utilization...

Closed account don't help utilization.
Frequent Contributor
Tmleverage
Posts: 452
Registered: ‎07-14-2007
0

Re: ? about utilization...

I have 2 chargoffs showing 180% utilization but they are paid so I am hoping they
get removed with the disputes..
Moderator Emeritus
fused
Posts: 16,373
Registered: ‎03-12-2007
0

Re: ? about utilization...



db23 wrote:
Closed account don't help utilization.

What do ya mean?
Credit Profile -
FICO 08 Scores (11-08-2014): EQ 818, 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

Frequent Contributor
db23
Posts: 342
Registered: ‎06-16-2007
0

Re: ? about utilization...



fused111 wrote:


db23 wrote:
Closed account don't help utilization.

What do ya mean?




Heh, looks like I only got 1/2 of my post in here somehow...

I was trying to say that Closed accounts don't help utilization, but closed accounts with balances will hurt.
Moderator Emeritus
fused
Posts: 16,373
Registered: ‎03-12-2007
0

Re: ? about utilization...



db23 wrote:


fused111 wrote:


db23 wrote:
Closed account don't help utilization.

What do ya mean?




Heh, looks like I only got 1/2 of my post in here somehow...

I was trying to say that Closed accounts don't help utilization, but closed accounts with balances will hurt.

The only time a closed CC with a balance will hurt your scores is if the util% is high, if it's low or close to $0, it won't. Closed and open accounts are weighed and scored equally. The same util% game applies to both open and closed accounts.
Credit Profile -
FICO 08 Scores (11-08-2014): EQ 818, 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

New Contributor
cbjn1103
Posts: 144
Registered: ‎06-01-2007
0

Re: ? about utilization...



jru577 wrote:
does the CL and remaining balance factor into utilization? I have one closed chase with a zero balance but it had a 2k limit. I have another closed chase with a 3700 balance and a 5800 limit. I also have one new amex with a 2k limit and zero balance.

Is my uti factored using the limits of the closed cards? or just open cards? how does this work?? I read some other uti threads and this is still fuzzy.

thanks!

judy

I think the other posts you recieved are correct as far as Utli goes, however IMO, I think that the fact that the TL's hurt you because they are closed and shortens your lenght of credit history. I also think that the credit payment history probably helps some too, as long as they are paid as agreed and no lates, and closed by yourself and not the creditor.
Moderator Emeritus
fused
Posts: 16,373
Registered: ‎03-12-2007
0

Re: ? about utilization...



cbjn1103 wrote:


jru577 wrote:
does the CL and remaining balance factor into utilization? I have one closed chase with a zero balance but it had a 2k limit. I have another closed chase with a 3700 balance and a 5800 limit. I also have one new amex with a 2k limit and zero balance.

Is my uti factored using the limits of the closed cards? or just open cards? how does this work?? I read some other uti threads and this is still fuzzy.

thanks!

judy

I think the other posts you received are correct as far as Util goes, however IMO, I think that the fact that the TL's hurt you because they are closed and shortens your length of credit history. I also think that the credit payment history probably helps some too, as long as they are paid as agreed and no lates, and closed by yourself and not the creditor.


Closed and open accounts are treated, weighed and scored equally. This includes aging, average age of account and credit length history. Also, it does not matter to FICO who closed the account, rather it's the cardmember or the credit grantor. I suppose it's possible a lender or CCC doing a manual review might not like seeing this. Stay tuned, I will be creating two new threads on these hot subjects: "Understanding CC Utilization" and "Closing CCs: Facts and Fiction."
Credit Profile -
FICO 08 Scores (11-08-2014): EQ 818, 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


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