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Valued Member
clarrkkent
Posts: 34
Registered: ‎04-26-2007
0

closed accounts used in util?

Anyone know, definitively, whether closed accounts with balances are used in calculating utilization?
 
I have one closed account with a balance, but since the card is closed there is no CL being reported. Just wondering if my utilization is being inflated because of this closed card.
2012 - EQ 785

2010 - EQ 680
2007 - EQ 630
2006 - EQ 600
Moderator Emeritus
Tuscani
Posts: 6,182
Registered: ‎03-29-2007
0

Re: closed accounts used in util?

Yes, however, certain calculations apply to each. For example, revolving utilization is not calculated for closed accounts with zero balances.
Regular Contributor
Physicist
Posts: 164
Registered: ‎07-14-2008
0

Re: closed accounts used in util?



Tuscani wrote:
Yes, however, certain calculations apply to each. For example, revolving utilization is not calculated for closed accounts with zero balances.



As far as I can say (well, for certain) I have a closed zero balance CC in my calculation.
Moderator Emeritus
fused
Posts: 16,373
Registered: ‎03-12-2007
0

Re: closed accounts used in util?



Physicist wrote:


Tuscani wrote:
Yes, however, certain calculations apply to each. For example, revolving utilization is not calculated for closed accounts with zero balances.



As far as I can say (well, for certain) I have a closed zero balance CC in my calculation.

This is not suppose to happen, are you sure of this?
Credit Profile -
FICO 08 Scores (11-08-2014): EQ 818, EX 817, TU 822
All three scores were 850. Lost points for not having an open installment TL. So, BE WARNED!!!!!
Credit History: 26+ years ~ AAoA: 12 years ~ Util: 1% ~ Inqs: EX 1

New Visitor
HAYESRACING
Posts: 1
Registered: ‎10-24-2011
0

Re: closed accounts used in util?

I HAVE 2 CREDIT CARD ACCOUNTS THAT I CLOSED IN 2009 BECAUSE THE CREDIT CARD COMPANIES WANTED TO RAISE MY FIXED RATE FROM 7.99 TO 16.99%.  I COULD OPT. OUT AND THEY WOULD CLOSE MY ACCOUNTS, BUT THE INTEREST RATE WOULD REMAIN AT 7.99% ON MY PREVIOS PURCHASES..MY QUESTION IS: WILL IT MAKE A DIFFERENCE ON MY CREDIT REPORTS AND SCORES IF I PAY THESE BALANCES OFF? AND IF SO WOULD IT BE A POSSITIVE OR NEGATIVE CHANGE?

Moderator Emeritus
llecs
Posts: 32,869
Registered: ‎08-04-2007
0

Re: closed accounts used in util?


HAYESRACING wrote:

I HAVE 2 CREDIT CARD ACCOUNTS THAT I CLOSED IN 2009 BECAUSE THE CREDIT CARD COMPANIES WANTED TO RAISE MY FIXED RATE FROM 7.99 TO 16.99%.  I COULD OPT. OUT AND THEY WOULD CLOSE MY ACCOUNTS, BUT THE INTEREST RATE WOULD REMAIN AT 7.99% ON MY PREVIOS PURCHASES..MY QUESTION IS: WILL IT MAKE A DIFFERENCE ON MY CREDIT REPORTS AND SCORES IF I PAY THESE BALANCES OFF? AND IF SO WOULD IT BE A POSSITIVE OR NEGATIVE CHANGE?



It depends. Are these non-charge cards or non-WorldPoints or non-signature cards? If so, and if they clearly show a CL within your CR, then they still factor into utilization assuming they are still updating. Once the balance shows $0, then they are forever removed from utilization calculations. You'd have to do some math to see  your change in utilization before and after. If your utilization is higher on average on your other cards, then conceivably your overall utilization could go up and your score could drop...but that's if you are carrying balances on your other cards aside from these two. Conversely, if your overall utilization is high now due to these two cards and paying them off would result in a low overall util (assuming you are paying a big chunk of debt off), then you could see some decent gains.

 

Score aside, it is always good to get out of debt and even if I thought it might hurt me, I'd PIF ASAP...you'd save on interest and that's two less cards to worry about.

New Visitor
Sapientia
Posts: 1
Registered: ‎06-20-2012
0

Re: closed accounts used in util?

If I close an account with a balance and the limit is now reporting as zero, however the balance is say 10 dollars, would this account show up with a utilization ratio of 100% or would the utilization ratio for the account display based on the last reported credit limit?

Moderator Emeritus
llecs
Posts: 32,869
Registered: ‎08-04-2007
0

Re: closed accounts used in util?


Sapientia wrote:

If I close an account with a balance and the limit is now reporting as zero, however the balance is say 10 dollars, would this account show up with a utilization ratio of 100% or would the utilization ratio for the account display based on the last reported credit limit?


If the limit shows as $0 on your CR, then FICO doesn't factor it into CC util.

Established Contributor
compassion101
Posts: 642
Registered: ‎06-06-2012
0

Re: closed accounts used in util?


llecs wrote:

Sapientia wrote:

If I close an account with a balance and the limit is now reporting as zero, however the balance is say 10 dollars, would this account show up with a utilization ratio of 100% or would the utilization ratio for the account display based on the last reported credit limit?


If the limit shows as $0 on your CR, then FICO doesn't factor it into CC util.


Are you certain they don't report the highest balance as the credit limit? I actually had a closed account with a balance and assumed they did. But I guess they were all fako scores that said what my utilization was, so can't be sure what FICO felt my utilization was and I don't think it says util anywhere on the CR does it?

 

 

 

 

Moderator Emeritus
llecs
Posts: 32,869
Registered: ‎08-04-2007
0

Re: closed accounts used in util?


compassion101 wrote:

llecs wrote:

Sapientia wrote:

If I close an account with a balance and the limit is now reporting as zero, however the balance is say 10 dollars, would this account show up with a utilization ratio of 100% or would the utilization ratio for the account display based on the last reported credit limit?


If the limit shows as $0 on your CR, then FICO doesn't factor it into CC util.


Are you certain they don't report the highest balance as the credit limit? I actually had a closed account with a balance and assumed they did. But I guess they were all fako scores that said what my utilization was, so can't be sure what FICO felt my utilization was and I don't think it says util anywhere on the CR does it?

 



High balance can be factored into util in some situations. In Sapientia's case, the CL field read $0 which excludes it from util. Now if it were blank, my answer could be different, depending on FICO version and card.

 

If util is a pos or neg item on pages 2 or 3 of your FICO report, then the util will show. Otherwise, it's time to break out the spreadsheet. 99% of the cards out there are simple to calculate. It becomes tricky when you have NPSL-like cards when balancing them util. You'd also have to count in some LOCs and HELOCs, including some CC COs, depending on how they report.


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