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Established Member
Snakeophelia
Posts: 21
Registered: ‎04-16-2008

Can I expect a boost from paying off closed account in full?

Last  year I closed a long-standing BOA MC that still had a balance on it. Obviously, I was not well-informed about the impact this would have and had not yet been reading the forums here!  Anyway, the damage from closing the account was done and my FICO has been steadily increasing since then. As of this week, that account will be paid in full.  Can I expect any boost to my score from that account going to zero, even though it's been closed for a year?
Moderator Emeritus
Posts: 11,562
Registered: ‎08-29-2007

Re: Can I expect a boost from paying off closed account in full?



Snakeophelia wrote:
Last  year I closed a long-standing BOA MC that still had a balance on it. Obviously, I was not well-informed about the impact this would have and had not yet been reading the forums here!  Anyway, the damage from closing the account was done and my FICO has been steadily increasing since then. As of this week, that account will be paid in full.  Can I expect any boost to my score from that account going to zero, even though it's been closed for a year?


You may or may not.
 
What other revolving accounts do you have and what is your util on them?
 
Closed accounts, with a balance, that are reported by the OC are normally included in util. When the closed account reaches a 0 balance, it is no longer included in util, no part of it-- including CL.
 
Figure your util with this account as it is now and without this account at all.
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cobra19
Posts: 1,426
Registered: ‎07-24-2007

Re: Can I expect a boost from paying off closed account in full?

I believe I might want to contact BoA and ask about possibly re-opening that account - get that history back.
 
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Established Member
Snakeophelia
Posts: 21
Registered: ‎04-16-2008

Re: Can I expect a boost from paying off closed account in full?



sidewinder wrote:


Snakeophelia wrote:
Last  year I closed a long-standing BOA MC that still had a balance on it. Obviously, I was not well-informed about the impact this would have and had not yet been reading the forums here!  Anyway, the damage from closing the account was done and my FICO has been steadily increasing since then. As of this week, that account will be paid in full.  Can I expect any boost to my score from that account going to zero, even though it's been closed for a year?


You may or may not.
 
What other revolving accounts do you have and what is your util on them?
 
Closed accounts, with a balance, that are reported by the OC are normally included in util. When the closed account reaches a 0 balance, it is no longer included in util, no part of it-- including CL.
 
Figure your util with this account as it is now and without this account at all.


My other accounts are my mortgage, car loan, AmEx (which does have a balance, probably about 80% of max), Sears (no balance, $1500 limit) and I just applied for the Nordstrom Visa (before I paid off this card).  What I just paid off was about 31% of the max for the MC.  My scores last week (before paying off the card or applying for the new one) were 693 EQ, 735 EX. 
 
Even if my score drops a bit due to this closed account coming off, I'm hoping it'll bounce back up if the Visa comes through.  We're not applying for a new mortgage until next summer - and besides it just feels SO GOOD to have that debt GONE.  I'm not a big fan of BOA! :smileyhappy:

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