Paying off Closed Credit Card? Usage % Stll Reporting?

[TheCity]

Hi everyone,

I'm recovering from a really rough 2017. One that saw me fall behind on a BoA CC to the point where they closed it. So now that I'm in a much better place in 2018, I'm trying to repair my credit.

The card still has a substantial balance on it, which I've been paying down qite feverously over the past couple of months. My question though, is, does that close card still report the balance as Credit Card Usage %? I'm seeing conflicting information on my credit reports, so I'm really not sure. Also, with the account being closed, does paying it off completely even help my score at this point?

Thanks!

Jerrell L. Dawkins

[cyrusvalentino]

There’s quite a few factors that go into this, but clearly the best answer is make right on what you owe as your working to do. The only case where I would advise against paying it would be if it wasn’t reporting a balance and hasn’t been updated in quite a few years.

But based on what you’ve provided so far they are reporting monthly, and they are reporting a balance. Paying the balance will lower your utilization to some extent, but ultimately may not improve your score. Whether it will, will depend on if the account is marked closed and charged off or just closed. There’s a huge difference between the two, and each affects your credit differently. So if you could give a little more info, I’m sure myself or other could advise better.

[GodivaD]

I waa In the same situation a few months ago. BoA updated my account every month with a balance on a closed account. So I finally paid it. Once it was paid in full my score jumped 40+ points. Unfortunately the payment history is ugly because they reported until I paid. So I do Believe it helps your score to pay it.

[TheCity]

Ah, gotcha!! Did you have late payments being reported from them also?

[TheCity]

Thanks for replying! I just checked the report and it shows as "Canceled by credit grantor", and closed. Not a charge off. The card itself also still shows as an account when I log into BoA.

-Jerrell