topic Closed Credit Card Accounts with Balances- How does this affect my score? in General Credit Topics

Closed Credit Card Accounts with Balances- How does this affect my score?

AdPray123 — Sun, 02 Nov 2008 04:58:30 GMT

Hi All,

Before understanding what credit scores meant, I went through a debt counseling program in which many accounts were closed. I now see that was a HUGE mistake but I am confident I will rebound. Anyhow, I still have balances on these that I pay monthly but want to know...

1. Does this debt count in my debt ratio towards my credit score since it is a closed account?

2. Once I pay them off, will my score drop because the account is closed or will my score increase since the debt ratio has been reduced?

Thank you all for your help!

Re: Closed Credit Card Accounts with Balances- How does this affect my score?

Anonymous — Sun, 02 Nov 2008 07:16:45 GMT

Those reporting a Bal is killing your scores. When an account is closed you get no credit for what the CL was BUT the amount that is owed is used against you!!!

After they are PIF they will report a good TL for 10 years from the date that they were closed.

After they are PIF yes you will see an increase in your scores.

What you need are CCs that that report a CL to lower you UTIL.

Re: Closed Credit Card Accounts with Balances- How does this affect my score?

AdPray123 — Sun, 02 Nov 2008 20:39:48 GMT

Thanks Happy Days,

What is CL, TL, and UTIL? Im new to a lot of this language. You have been very helpful

Re: Closed Credit Card Accounts with Balances- How does this affect my score?

GFer — Wed, 26 Nov 2008 20:32:00 GMT

@AdPray123 wrote:
Thanks Happy Days,
What is CL, TL, and UTIL? Im new to a lot of this language. You have been very helpful

This will help!

http://ficoforums.myfico.com/fico/board/message?board.id=Welcome&thread.id=23

Then check out Tuscani's Credit Scoring 101:

http://ficoforums.myfico.com/fico/board/message?board.id=ficoscoring&thread.id=29793

Message Edited by llecs on 11-26-2008 03:32 PM

Re: Closed Credit Card Accounts with Balances- How does this affect my score?

AdPray123 — Mon, 03 Nov 2008 02:56:27 GMT

Great! Thanks Thank Helped Alot!!!!!