topic $0 balance, $0 available - should I close in Credit Cards

$0 balance, $0 available - should I close

Anonymous — Sat, 31 Jan 2009 02:28:23 GMT

Hello All,

First post here on the site. I first want to say I wish I would have know of this long time ago. The site is awesome.

As the subject indicates, I have a card issued from CFNA in which is being reported as $0 balance, $0 available. It appears this account is still considered to be opened when reviewing my report, however, I do not get an available balance. I spoke to a CSR and was informed the available credit was zeroed due to past due payments which have been paid for over a year now. She said I was up for a review and asked if I wanted it, I agreed, however, I was denied. Now, from my understanding, the account is still open and is being reported in good standings, just $0 balance, $0 available.

With this being said, I have two questions if I may...

1)Should I try to contact someone via a backdoor number as some of you have shown to have been successful on?

2)Would there be an adverse effect if I just closed the card now and let the card just be history in terms of reporting?

I hope I stated myself clear enough for a response. If not, please let me know where the confusion is because I could use the advice.

Thank you!

Re: $0 balance, $0 available - should I close

fused — Sat, 31 Jan 2009 02:53:02 GMT

Welcome to the forums!

1.) Yes, you should try. Unfortunately, I don't have a backdoor number for CFNA. Someone else might know one.

2.) Please read the closing credit cards in my sig line

Re: $0 balance, $0 available - should I close

Anonymous — Sat, 31 Jan 2009 03:00:42 GMT

Thank you fused. I actually did read that before I posted. Based on what I understood from reading that, this account is not helpin me by keeping it due to the fact it does not increase my overall available credit therefore not impact my UTIL (still learning all the abbreviations). Is my understanding incorrect?

Re: $0 balance, $0 available - should I close

fused — Sat, 31 Jan 2009 03:11:39 GMT

With the way this account is reporting, the only that might be hurting your scores are the lates. Who is CFNA? Now you know an abbreviation that I don't know. LOL!

Re: $0 balance, $0 available - should I close

Anonymous — Sat, 31 Jan 2009 03:13:58 GMT

CFNA = Credit First National Association

example : firestone

Re: $0 balance, $0 available - should I close

Anonymous — Sat, 31 Jan 2009 03:25:32 GMT

Is it reporting on your CR as a $0 CL? I've read that firestone/cfna doesn't report your actual CL but the highest balance you've ever carried as your CL instead. This is true for ours. We originally had a $1500 limit and used $1400 of it. We requested a CLI and was knocked back down to a $0 CL because of a baddie that showed up on my DH's report. It has now made it's way back up to $400 CL but on my DH's CR it still shows as a limit of $1400 which is the highest balance we carried.

Re: $0 balance, $0 available - should I close

Anonymous — Sat, 31 Jan 2009 03:40:18 GMT

Nailed it fender..Firestone is the one as well.

Fused...the lates are what they are - valid. So, should I just keep it and maybe go back a little later and ask to review since the account is open and is in good status?

mbrown75, you are right. my apologies. It does show my limit as my high balance as well. My apologies. With that correction, should I just let it stand as it. Maybe it is not so bad afterall.

Message Edited by ABETRMAN on 01-30-2009 07:40 PM

Re: $0 balance, $0 available - should I close

fused — Sat, 31 Jan 2009 03:36:37 GMT

ABETRMAN wrote:
Nailed it fender..Firestone is the one as well.

Fused...the lates are what they are - valid. So, should I just keep it and maybe go back a little later and ask to review since the account is open and is in good status?

Do you have any other open CCs in good standing. What are their reporting limits and balances?

Re: $0 balance, $0 available - should I close

Anonymous — Sat, 31 Jan 2009 03:50:24 GMT

yes...

895/2000

1693/1800

2950/3000

2433/5500

I also have one that has been closed (due to late payments), but is still carrying a balance of 3264/5295..been debating if i should bite the bullet and pay it completely off or pay down the others while making the mins on this one...that was going to be my next post topic:-)

I think I am getting the UTIL% thing which is why I have put a focus on trying to lower the others in good standings. Other than those, I just have my car note and house note both of which are in pretty good standings. Student loans which are in deferment right now.

Message Edited by ABETRMAN on 01-30-2009 07:50 PM

Re: $0 balance, $0 available - should I close

fused — Sat, 31 Jan 2009 04:25:14 GMT

You can try to go backdoor, but if it was me, I wouldn't bother. Your util is too high on your cards, and it's unlikely they will give enough of a CL to offset your high util. You might also waste a hard inquiry on your report.

Re: $0 balance, $0 available - should I close

oracles — Sat, 31 Jan 2009 04:55:41 GMT

Hi Abetrman and welcome to the forums

First-

Weather you close the account or not, the lates are going to exist for 7 - 7.5 years.

I would not close the account because it is helping your Average Age of Accounts. If you close it, you will feel the effect not now but after 10 years. The account will come off of your report and you will take a hit. Now I would say that if you were able to get more credit cards, in 10 years the cards will be 10 years old and therefore it will not matter too much. However seeing the predicament you are currently in, I don't think you will be able to get additional cards at this moment. When you are in a better position to get better cards in the future, you want this account open to dilute the new credit cards. The new credit cards will bring down your average age of accounts and with having this card continuing to gain history, it will offset the new cards somewhat.

Keep it open, it is only helping you.

Second-

The card that is close and have a balance of $3264, is killing your score. Because it is closed, the credit limit is not being included in your total credit limit overall, therefore you have a tremendously high util%.

From doing the math with what you have given us

total credit limits = 10,300

total balance = 11,235

util is over 100%, this is because the $5295 limit on the closed card is not included in your util%

You need to decide what is more important to you. Is your fico score getting better soon a priority or is saving money the priority.

If it is to save money, than pay off the card with the highest apr first. Make the minimums on all the other cards and pay off the card with the highest apr first, and then repeat.

If it is to get a better score, you need to first pay off the card that closed. It is killing your overall util% and individual credit card util%.

hope this helped and keep us posted

Re: $0 balance, $0 available - should I close

Anonymous — Sat, 31 Jan 2009 05:53:13 GMT

oracles,

My current FCR by EXP says I have 34.5% available. Not sure how that is calculated, but either way it is not what it needs to be. This is probably where I will focus and try to pay down on the others as I can. This is my only non-store CC (if that makes sense). I would like to get things back in order so I can get one that I can use in the cases of emergency, not just to buy carpet:-)

As far as the CFNA goes, I let it be and hope they don't close it for whatever reason.

I thank you all for your responses..In a few short conversations, my understanding has increased. I am sure you all will see me around. Posting updates as they may.

Re: $0 balance, $0 available - should I close

oracles — Sat, 31 Jan 2009 06:14:15 GMT

As far as the 34.5% available, do you have any other credit cards?

What else is on your report? With the info you gave, as i stated before, your util would be over 100%.

Is the closed credit card reporting on EX?

If you would like to give us more info regarding your reports, maybe we can help you some more.

Definitely keep us posted and continue to ask any questions you may have.

Re: $0 balance, $0 available - should I close

Anonymous — Tue, 03 Feb 2009 06:25:46 GMT

Hey Oracles...sorry for the late response...each of the amounts from the previous post were my remaing credit cards. the cards are consumer cards not visa or anything like that. home depot, rooms to go, best buy, and a couple others like that.

the closed card is reporting..it reads like this:

Account Type Credit Card - Revolving Terms

Balance $3,254.00

Date Opened 7/1/2004

Account Status Closed

Mo. Payment $82.00

Past Due Payment Status Current, was past due 30 days five times

High Balance $5,937.00

Limit $5,295.00

Terms Revolving

Comments Credit line closed-grantor request-reported by subscriber