PAYING OFF CLOSED ACCOUNT WITH A BALANCE AND EFFECT ON CREDIT SCORE

[Prosper777]

Like I've mentioned in my original post, I'm trying to help my friend who is trying to INCREASE his credit score! Thank you!

[AverageJoesCredit]

Welcome to the forum Prosper! Im no expert at this credit world we live in as i myself am rebuilding and learning everyday. If it is a debt that he has to continue to pay, as id imagine it is if its not a charge off, id just recommend to just try and pay it off as fast as possible for your friend. That way itll be one less thing your friend has to worry about and in the end he'll know at least he fulfilled his obligation to pay. I understand what its like to lose a job as we live in crazy times and it could happen to most of us. Good luck in helping your friend and there really is some great help and advise to be found here. Hope you stick around.Cheers

[Prosper777]

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@AverageJoesCredit wrote:
Welcome to the forum Prosper! Im no expert at this credit world we live in as i myself am rebuilding and learning everyday. If it is a debt that he has to continue to pay, as id imagine it is if its not a charge off, id just recommend to just try and pay it off as fast as possible for your friend. That way itll be one less thing your friend has to worry about and in the end he'll know at least he fulfilled his obligation to pay. I understand what its like to lose a job as we live in crazy times and it could happen to most of us. Good luck in helping your friend and there really is some great help and advise to be found here. Hope you stick around.Cheers

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Thank you so very much for trying to help! I've been reading this forum for ages and learned quite a lot of useful information but I'm not sure I've ever come across this type of problem my friend is trying to solve. He wants to know if by paying off his only closed account with a balance (it's NOT a charge off, it was closed by the creditor Citibank during those crazy balance chasing times!) his credit score would actually increase or decrease since he fears that the account wouldn't be reporting the credit limit anymore thus affecting the credit utilization. Would love to hear from long time contributors as well. Cheers!

[Anonymous]

Hi Prosper!
I may be wrong but I don't believe having that balance on a closed account is helping him at all, in fact I think the balance is affecting his overall UTI but because it's closed isn't helping his available credit. Once paid I believe his score may see a slight increase. Closed accounts only stay on for I believe up to 10 years. I would tell him to pay it off. The account should probably vanish from his account soon altogether once that threshold is passed and once that happens his score will decrease a bit if this is his oldest account or its removal affects his AaoA. But it's time to make room for the new!

[Prosper777]

Thank you very much to all that took the time to reply, I truly appreciate it!