cancel
Showing results for 
Search instead for 
Did you mean: 

Do overlimit cards which got closed by issuer still produce over-the-limit score hit?

tag
Anonymous
Not applicable

Do overlimit cards which got closed by issuer still produce over-the-limit score hit?

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!!!

Message 1 of 3
2 REPLIES 2
Anonymous
Not applicable

Re: Do overlimit cards which got closed by issuer still produce over-the-limit score hit?

As you may know, utilization is an important part of various credit scoring models so you really need to pay down your debt. Which option works best I will leave to others on this forum who have more experience with your situation.
Message 2 of 3
Revelate
Moderator Emeritus

Re: Do overlimit cards which got closed by issuer still produce over-the-limit score hit?

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.




        
Message 3 of 3
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.