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Basically I have an account which was chronically overlimit, so it got closed by issuer. It still reports monthly on my credit reports (balance/limit/payment history), but as a closed account. I make the minimum payments on it every month.
What I am wondering is this:
I am working on improving my credit score. Which of these 2 options is better for my score, with a given amount of money: 1) pay down enough of this closed account so that it is not OTL anymore or 2) pay down one of my open/active cards, so that I am using less % of its balance?
Basically, I know that anytime I go over-the-limit on one of my open cards, my score takes a 14-point hit for each of card over-the-limit. Wondering if I am still sustaining the same type of hit on the now-closed OTL account.
THANKS!!!
I'm pretty sure over the limit just counts as 100% utilization; was somewhat common with flexible spending accounts anyway so I doubt it's anything worse than that.
Utilization on closed accounts still factored, so I would assume that the answer to your question is yes., you still are taking that ding. 100% utilized closed accounts historically do, so this should behave similarly.