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usmc58555
Posts: 1,668
Registered: ‎02-18-2009
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How much does closed by consumer credit line with a balance hurt?

I am Happy with my current credit lines. I am not seeking new credit anytime soon

 

Am in the process of pruning and allowing time to restore credit score due to past high usage.


But canceled Orchard when I realised I had no reason for it, the annual fee and it's $300 limit anymore.

Am still making payments owe about $95.00 on it.

I am in no hurry to pay it, like I said I do not need credit anytime soon, but am curious at how much more negative owing a balance on a closed account looks.

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haulingthescoreup
Posts: 28,098
Registered: ‎04-01-2007
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Re: How much does closed by consumer credit line with a balance hurt?

I guess that's going to vary a lot by the lender. Sorry, I know that doesn't help. It's just that it gets into mind-reading territory.

No effect on scoring, other than losing the CL in the denominator and having the balance remain in the numerator. Depending on your current util and the new one, there might not be any score change from this at all.
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
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cobaltnv
Posts: 640
Registered: ‎09-02-2008
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Re: How much does closed by consumer credit line with a balance hurt?

No sure how often this happens or if the ccc would bother about $95, but there have been posts stating that closed accounts with a balance have been sent to collections or charged off. 

If you only owe $95 I would suggest paying it off and being done with it. 

TU 810: EQ 813: EX 814 (9/16/09--Loan officer pull)

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RobertEG
Posts: 18,211
Registered: ‎03-19-2007
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Re: How much does closed by consumer credit line with a balance hurt?

cobalt hit my nail on the head,  If you close an acount, pay it and be rid of it.

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