Closed Cedit Card Question

ayuaxl1 · ‎06-03-2014

Hi! I have a question regarding 1 of the credit cards listed on my account. It was opened in 1999 and is now currently closed but I still owe $2500 on it and I'm currently paying on it. It is listed as closed by credit grantor on my credit report. I plan to have this account paid off in Sept. My question is since this account is closed will paying it to $0 balance negatively effect my fico score in any way. I was thinking it should help since utilization will be lowered. Just wasn't sure if it is being accounted for in my Age of credit and when paid off will reduce my age of credit. Any insight anyone can provide would be greatly appreciated. Thanks!

Shogun · ‎06-03-2014

Is it showing an available balance?

Starting Score: 504
July 2013 score: EQ FICO 819, TU08 778, EX "806 lender pull 07/26/2013
Goal Score: All Scores 760+, Newest goal 800+
Take the myFICO Fitness Challenge
Current scores after adding $81K in CLs and 2 new cars since July 2013
EQ:809 TU 777 EX 790 Now it's just garden time!

June 2017 update: All scores over 820, just pure gardening now.

GooseGirl · ‎06-03-2014

I'm no expert, just an avid reader of these boards, but I think you are correct and that it will only help with the improvement to your utilization. Since it is still showing on your credit report I'm assuming it was closed in the last 7 - 10 years?

Hopefully one of the real experts will come along and chime in.

Starting Score: EQ 541 (lender pull July 2012)
Current Score: EQ FICO 673, TU08 648, EX FICO 654
Next Goal Score: 680

ayuaxl1 · ‎06-03-2014

Credit line available is $0 when I look at account online. It has been that way for some time now.

Shogun · ‎06-03-2014

@ayuaxl1 wrote:
Credit line available is $0 when I look at account online. It has been that way for some time now.

So right now it's killing your util, I'd say maybe a bump when paid.

Starting Score: 504
July 2013 score: EQ FICO 819, TU08 778, EX "806 lender pull 07/26/2013
Goal Score: All Scores 760+, Newest goal 800+
Take the myFICO Fitness Challenge
Current scores after adding $81K in CLs and 2 new cars since July 2013
EQ:809 TU 777 EX 790 Now it's just garden time!

June 2017 update: All scores over 820, just pure gardening now.

ayuaxl1 · ‎06-03-2014

Thanks Shogun & Goose Girl. I'm hoping paying off does give me a boost in points. I just wasn't sure how an account like this effects my credit score since it is closed. It's weird because when I calculate my utilization it matches what is listed on my credit report and looks like the closed accounts credit limit is included. Wasn't sure if paying it off could have any negative effect.