Account Closed - Revolve Util Lower - Score Crushed

[800goal800]

I have had an “ open “ Cap One card for years with a 29k credit line. No balance.  That said, I was never able to use it for as long as I remember. It had been use but at some point it was closed but still reporting as open with that credit.  I know it sounds confusing.  Whenever I called they said we can’t issue a new card to use but it is still open.  So....after all this time, the credit available is gone.  I only have a $20 balance on one card. The other card had been the above.  So in theory, the % util hasn’t changed.  However, I have multiple chargoff, etc.  How did the $29k credit line impact the reported balances of the chargefoffs ? I know there is util of a card and util of all a tradelines - is that open tradelines or open and collections/ chargeeoff. 

Lost 28 and 30 points from Exp and TU. Equifax not updated yet.   

Thanks. 

[800goal800]

Bump

[Anonymous]

Closed credit cards are considered by FICO to have a $0 credit limit. 

If the closed card has a positive balance, then its balance is exceeding its credit limit.  When a card's balance exceeds its credit limit, it has an individual utilization of > 101%, for which there is a stiff penalty.

FICO calculates total utilization by adding up total revolving debt (including that on closed cards) and dividing it by total credit limit.

You now have a low credit limit (it was much higher when the 29k limit card was reporting) but still have a large debt (which includes the balances on the closed cards).

In short you have over 101% individual utilization on multiple cards and a high total utilization as well.  You can solve that problem by paying down your debt.  Alternatively, if some of the charge offs will fall off your reports soon, you can simply wait or focus your paydown efforts on open cards.