Ok guys, sorry for another credit card utilization question. I have studied this board intensely on this topic and still find myself asking questions. I guess every person's situation is different with this stuff. With regard to my situation, I am just now discovering that closed credit card accounts with balances are included in the credit utilization calc. Does this sound right? I guess it makes sense....I mean I still owe on this account even though I no longer have access to the credit limit. Nonetheless, myfico and equifax are giving me a 54% utilization rate and the only way I can figure that % is when I figure in that credit card.
The story behind this credit card is that I went delinquent on it back in april/may so the creditor naturally closed the account. Well, when I finally got the money to start paying on the account, the creditor agreed to a payment plan to pay back the balance. So it shows a balance on my credit report and is reporting like a normal credit card now that I am back to paying current on it, but it is closed.
Now, my follow up question, if I bring down my 54% cc utilization to below 30% this month, how much should I expect my fico score to go up....10, 20 points? And what will happen when I finally pay off this closed credit card? Will the credit limit then be taken out of the denominator of the cc utilization calc?
Sorry for so many questions. I am trying to maximize my fico points so that I can buy a house in the next few months.
Thanks in advance!