topic Re: Do closed accounts count towards utilization? in General Credit Topics

Do closed accounts count towards utilization?

Anonymous — Mon, 12 Mar 2012 17:59:42 GMT

I made mistake of closing accounts a year ago and now I am still paying them down. Do the balances count as utilization? Or is it only open accounts?

Thanks!!!

Re: Do closed accounts count towards utilization?

Anonymous — Mon, 12 Mar 2012 18:00:02 GMT

No they do not.

Re: Do closed accounts count towards utilization?

Anonymous — Mon, 12 Mar 2012 18:02:05 GMT

Thanks for the quick response!! That was awesome and it was the answer I wanted!

That would explain a 50+ point jump in my score by paying down the active accounts I have!!

Re: Do closed accounts count towards utilization?

Anonymous — Mon, 12 Mar 2012 18:02:31 GMT

@Anonymous wrote:
I made mistake of closing accounts a year ago and now I am still paying them down. Do the balances count as utilization? Or is it only open accounts?

Thanks!!!

Welcome to the forums.

Closed revolving accounts will factor into utilization if both the credit limit and balance are reporting. If either of these is missing then the account is excluded from utilization.

Re: Do closed accounts count towards utilization?

llecs — Mon, 12 Mar 2012 18:06:32 GMT

@Anonymous wrote:
@Anonymous wrote:
I made mistake of closing accounts a year ago and now I am still paying them down. Do the balances count as utilization? Or is it only open accounts?

Thanks!!!
Welcome to the forums.

Closed revolving accounts will factor into utilization if both the credit limit and balance are reporting. If either of these is missing then the account is excluded from utilization.

+1.

Closed accounts can still factor into util with regards to FICO scoring. Bad accounts like charge-offs, can also factor in too.

Re: Do closed accounts count towards utilization?

Anonymous — Mon, 12 Mar 2012 18:08:44 GMT

@Anonymous wrote:
@Anonymous wrote:
I made mistake of closing accounts a year ago and now I am still paying them down. Do the balances count as utilization? Or is it only open accounts?

Thanks!!!
Welcome to the forums.

Closed revolving accounts will factor into utilization if both the credit limit and balance are reporting. If either of these is missing then the account is excluded from utilization.

Good clarification. I forgot that one could still have balances on a closed account. I have multiple close revolvers (all Paid off), non of the show CL on them. Does anyone have a closed and paif off account showing CL?

Re: Do closed accounts count towards utilization?

llecs — Mon, 12 Mar 2012 18:18:27 GMT

pakman92 wrote:
Does anyone have a closed and paif off account showing CL?

I have a couple reporting. They report a CL, but they are excluded because it shows $0 with paid/closed as a comment.

Re: Do closed accounts count towards utilization?

LS2982 — Mon, 12 Mar 2012 18:26:57 GMT

Closed accounts do not count as long as there is a $0 Balance reporting. Its always important to make sure the card is PIF before closing so there is no nonsense from the creditor in the future!

Re: Do closed accounts count towards utilization?

boomhower — Mon, 12 Mar 2012 19:20:11 GMT

If there is a balance it certainly counts.

Re: Do closed accounts count towards utilization?

Anonymous — Mon, 12 Mar 2012 19:29:44 GMT

@boomhower wrote:
If there is a balance it certainly counts.

Not if only a balance is reporting. Or if only the CL is reporting. Both items have to be reported before the account is counted in utilization. You can read more about this here: Closing Credit Cards.