Credit Cards or Auto Loan

[Junejer]

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RobertEG wrote:

Yup.  Closed accounts with a balance have no CL and all balance owed still count into revolving  util, which is the most highly scored in FICO.

Forget paying off the installment loan, and concentrate on the unpaid revolv accounts.  This is expecially critical because you dont want them to go into CO, and then into CA, by the OC, which will raise a whole new dimension of scoring woes for you.  Clear them doggies off the prairie! 

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What does that mean?

[Anonymous]

I think he's saying that for utilitization ratio purposes, closed accounts carrying a balance have a credit limit of 0. Hence, they kill your total utilization, and if they count for individual utilization, are automatically maxed out.

Message Edited by JESMONT on 02-18-2009 09:49 AM

[Junejer]

I understand how it works from a math standpoint, but it is incorrect to state that it is most highly scored in the FICO scoring system. This language could confuse the mess out of a newbie.

[Anonymous]

When I look at my credit report, it show a credit limit, but the account is closed.

[Junejer]

If it is truly showing both a CL and a balance on a closed account, then count your blessings, because those days are numbered. It won't be like that forever. Pay them off as quickly as possible.