Question re: what to pay

[guiness56]

Since the cards are closed, there would be no CL.  But the 9K balance would definitely count in the utilization.

[mauve]

G, I've seen posters here with closed revolving accounts reporting both a CL and a balance and suffering from really high (over 100%) utilizations that were not accounted for by their open accounts.  The rule of thumb that I've been seeing of late is that if the CL is reported and the balance is 0 on a closed account, it is not counted towards utilization / if the CL is reported and there's a balance, it IS counted towards utilization / if neither the CL nor the balance is reported, it is not counted towards utilization  - all on closed revolving accounts.

[MarineVietVet]

In a thread written by one of the forum's most respected and knowledgeable members there are 4 possible scenarios for a closed CC account.

- If a closed CC account with a balance continues to report the original credit limit, then both the balance and the CL of the closed account will be used in the utilization calculations.

- If a closed CC account is reporting a zero CL, even if there is a balance on the CC, the card will not be included in the calculations.

- If a closed CC account is reporting a non-zero CL but has a zero balance, the card will not be included in the calculations.

- If a closed account reports a CL that is equal to the balance (balance chasing), then this will be included in the calculations.  This is the worst-case scenario with regard to utilization.

This can be found in Closing Credit Cards. Now I'm just a humble messenger. If anyone disagrees with those 4 possibilities please take it up with the author and not me. 

From a BK years ago to:
EX - 3/11 pulled by lender- 835, EQ - 2/11-816, TU - 2/11-782

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

[guiness56]

I don't agree nor disagree.

I just can't imagine that a Credit Grantor closes your account, which has a balance, and it isn't counted toward utilization. No matter if there is a CL reporting or not reporting.   

And, I did assume the CC was either COd or a collection account.  The OP didn't say one way or the other.

So are you saying that even if it is a collection or CO those balances don't count in your utilization? 

[mauve]

It's what I've read - and other posters have confirmed it.  I (un?)fortunately don't have an account on my reports to do the calculations with. 

[guiness56]

I do.  I have 2 and both of them count toward my utilization.

Anyway, I have always been told, even recently,  that a CO with an OC always counts toward your utilization. 

So, I am still confused.

[MBOhio2]

I have a CC that is closed, reports a $0 CL with a balance well above $0 and it is not counting toward my utilization %. Therefore, I would agree with the above statement that says:

- If a closed CC account is reporting a zero CL, even if there is a balance on the CC, the card will not be included in the calculations.

While it seems logical that there would be standard rules around this, it does seem like there are inconsistencies. To be 100% accurate, I would look at your CR and figure it out for yourself.

[guiness56]

I would agree if it is just closed with a balance.

If it is COd I have to disagree.  Mine is counting toward my utilization and it shows a 0 CL.

[MBOhio2]

Yes, mine was just closed with a balance, not a CO.

[MarineVietVet]

It could be that those 4 scenarios are what is supposed to happen but if the CRA's (or perhaps the creditors themselves) are not coding the information correctly then variations might occur. I don't know. I'm just throwing that out there.

It's along the same lines that collections are supposed to be scored from the date of assigmnent and not the date of last activity but the CA has to report correctly and the CRA needs to put the information into the correct data fields.

Seems like this is just another YMMV situation.

From a BK years ago to:
EX - 3/11 pulled by lender- 835, EQ - 2/11-816, TU - 2/11-782

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".