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Contributor
Posts: 85
Registered: ‎04-23-2012
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Closed account still reporting balance almost paid off. With this hurt my score?

I've improved my credit score big time these past 11 months, but I have had an account closed due to inactivity I'm guessing. It was closed over 12 months ago, but every month I pay a little more than the minimum payment, and each month the statement updates and report the account was closed the prior month.

 

Anyways, the high balance on the account is $1900+ I've been paying the minimum and a little more every month for 5 years now (December 8th) the remaining balance is  $229.05.  Now I'm afraid once it's paid off it will drop my credit scores, so do anyone know if this will hurt me or help me?


Starting Score: TU527 EQ517 April 2012
Current Score: TU535 EQ540 May 2012
Current Score: TU631 EQ620 October 2012
Goal Score: 675


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Established Contributor
Posts: 529
Registered: ‎10-25-2012
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Re: Closed account still reporting balance almost paid off. With this hurt my score?

Normally closed positive accounts will remain for 10 years, I'm guessing it will actually help you once it's paid off because your utilization will be lowered.

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Contributor
Posts: 85
Registered: ‎04-23-2012
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Re: Closed account still reporting balance almost paid off. With this hurt my score?

Thanks a lot Tattoo!!!!!


Starting Score: TU527 EQ517 April 2012
Current Score: TU535 EQ540 May 2012
Current Score: TU631 EQ620 October 2012
Goal Score: 675


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Moderator Emeritus
Posts: 32,865
Registered: ‎08-04-2007
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Re: Closed account still reporting balance almost paid off. With this hurt my score?

Is there a reported CL? Util would have been unchanged if there's no CL reporting. If there is a CL reporting, then paying it off means that it is forever removed from CC util. If your util on your remaining CCs is higher without the util from this closed CC you are paying off, then you could possibly see a drop. Closed CCs still factor into util if a balance  and CL report.

Contributor
Posts: 85
Registered: ‎04-23-2012
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Re: Closed account still reporting balance almost paid off. With this hurt my score?

No, I don't believe it's reporting a credit limit. Everything now says $0.00, is this a good or bad thing?


Starting Score: TU527 EQ517 April 2012
Current Score: TU535 EQ540 May 2012
Current Score: TU631 EQ620 October 2012
Goal Score: 675


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Moderator Emeritus
Posts: 32,865
Registered: ‎08-04-2007
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Re: Closed account still reporting balance almost paid off. With this hurt my score?


mwmiller82 wrote:

No, I don't believe it's reporting a credit limit. Everything now says $0.00, is this a good or bad thing?


If for sure the CL is missing or at $0, then paying it off won't have much of an impact, other than a chance for a slight bump with an added $0 balance.

Valued Contributor
Posts: 1,900
Registered: ‎01-05-2010
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Re: Closed account still reporting balance almost paid off. With this hurt my score?

I have a card, which is used for util by no less than all three credit agencies, even though the credit limit is not reported. Would that change if the card is closed? We assume of course that the balance hasn't been zeroed.

 

Moderator Emeritus
Posts: 32,865
Registered: ‎08-04-2007
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Re: Closed account still reporting balance almost paid off. With this hurt my score?

If the card is marked closed, it can still factor into util. If the card is marked closed and $0, then it's forever removed.

Contributor
Posts: 85
Registered: ‎04-23-2012
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Re: Closed account still reporting balance almost paid off. With this hurt my score?

UPDATE.

 

ok, so the account is a revolving account, on all of my billing statements thwhenever showed the CL. I had to go to my credit report to see, and what I found was 2 things, it was showing two different CL in two different sections, which is confusing me. One section is "derogatory accounts" which it showes a CL of $1950REV and under "closed accounts" it showes $1500REV. Now both accounts say "account closed due to grantors request, and the one which is under "derogatory account" seems to be the more recent reporting because it showes a 10/2012 reported date where as account"closed account" showes a "3/2010" reported date.

 

I was down to a total balance of $115 this month ($230 last month) so this month I got the bill and I paid my last minimum payment of $115. The due date was 12/12/2012 and now it showes the balance on the website at $0.00

 

I hope my new reporting helps with my original question since I I have better info now.


Starting Score: TU527 EQ517 April 2012
Current Score: TU535 EQ540 May 2012
Current Score: TU631 EQ620 October 2012
Goal Score: 675


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Contributor
Posts: 85
Registered: ‎04-23-2012
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Re: Closed account still reporting balance almost paid off. Will this hurt my score?

Help llecs! Smiley Sad


Starting Score: TU527 EQ517 April 2012
Current Score: TU535 EQ540 May 2012
Current Score: TU631 EQ620 October 2012
Goal Score: 675


Take the FICO Fitness Challenge

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