topic Closed accounts count towards total credit? in General Credit Topics

Closed accounts count towards total credit?

itspaul — Wed, 06 Nov 2019 21:47:23 GMT

I have a 3 closed revolvers that are counting towards my total CL.
They have a zero balance, but it's helping in my favor to lower my utilization.
This is through Credit Karma so I'm not sure it's a specific to CK or TU?

Re: Closed accounts count towards total credit?

DaveInAZ — Wed, 06 Nov 2019 21:59:35 GMT

CK / Vantage 3 doesn't even show you closed accounts, so you must be misinterpreting something. And closed accounts don't count towards total CL on any credit reports from any CRA.

Re: Closed accounts count towards total credit?

FireMedic1 — Wed, 06 Nov 2019 22:10:02 GMT

Not to be right. CK does show closed accounts. Its under total accounts when you click on 1 of the CRA's and a little title "closed accounts". If these accounts are closed and 0 balance. They're not factured into your util OP like @DaveInAZ posted.

Re: Closed accounts count towards total credit?

itspaul — Wed, 06 Nov 2019 22:48:41 GMT

To better clarify:
On CK the TU is factoring in 2 terminated AU towards the total credit.
The EQ is not factoring those terminated AU in.

Neither one is factoring in the closed accounts

Re: Closed accounts count towards total credit?

DaveInAZ — Wed, 06 Nov 2019 23:29:25 GMT

@FireMedic1 wrote:
Not to be right. CK does show closed accounts. Its under total accounts when you click on 1 of the CRA's and a little title "closed accounts". If these accounts are closed and 0 balance. They're not factured into your util OP like @DaveInAZ posted.

Oh geez, I never noticed that little title "closed accounts", but I don't use or like CK much. And maybe I'm confusing that Vantage scoring doesn't include closed accounts in your Average Age of Accounts like Fico does.

And @itspaul CK's TU might be including those terminated AU accounts in your total CL because the CC issuer never reported them terminated to TU.

Re: Closed accounts count towards total credit?

FireMedic1 — Wed, 06 Nov 2019 23:33:36 GMT

@DaveInAZ wrote:
@FireMedic1 wrote:
Not to be right. CK does show closed accounts. Its under total accounts when you click on 1 of the CRA's and a little title "closed accounts". If these accounts are closed and 0 balance. They're not factured into your util OP like @DaveInAZ posted.
Oh geez, I never noticed that little title "closed accounts", but I don't use or like CK much. And maybe I'm confusing that Vantage scoring doesn't include closed accounts in your Average Age of Accounts like Fico does.

And @itspaul CK's TU might be including those terminated AU accounts in your total CL because the CC issuer never reported them terminated to TU.

Its all good bro. Only good for alerts and thats about it. Ha!

Re: Closed accounts count towards total credit?

iv — Wed, 06 Nov 2019 23:43:40 GMT

@DaveInAZ wrote:
Oh geez, I never noticed that little title "closed accounts", but I don't use or like CK much. And maybe I'm confusing that Vantage scoring doesn't include closed accounts in your Average Age of Accounts like Fico does.

Nope... Vantage does include closed accounts in AAoA, just like FICO does: https://your.vantagescore.com/resource/81/

CK doesn't include them in their fluff display calculations. CK is wrong.

Re: Closed accounts count towards total credit?

itspaul — Wed, 06 Nov 2019 23:44:16 GMT

I'm not able to upload a screen shot, but the 2 terminated AUs show as zero balance and their CL are counting towards my total CL.
When I expanded out the trade lines, they show terminated.

Re: Closed accounts count towards total credit?

iv — Wed, 06 Nov 2019 23:50:35 GMT

@itspaul wrote:
I'm not able to upload a screen shot, but the 2 terminated AUs show as zero balance and their CL are counting towards my total CL.
When I expanded out the trade lines, they show terminated.

It doesn't matter how CK decides to display data in their summary screens... none of that actually affects how scoring (Vantage, FICO, or other) is actually calculated.

And a former AU card reporting as "Terminated" does not count towards your total limits for utilization in any major scoring system. It will continue to count towards AAoA, unless and until it's deleted from your reports.

Re: Closed accounts count towards total credit?

SouthJamaica — Thu, 07 Nov 2019 02:41:57 GMT

@itspaul wrote:
I have a 3 closed revolvers that are counting towards my total CL.
They have a zero balance, but it's helping in my favor to lower my utilization.
This is through Credit Karma so I'm not sure it's a specific to CK or TU?

Closed accounts with zero balance do not count towards your total credit limits.

Re: Closed accounts count towards total credit?

RobertEG — Thu, 07 Nov 2019 15:47:12 GMT

A closed revolving credit account means that the account has been closed to the consumer making new purchases/charges.

Closing does not per se affect scoring; some other factor will determine scoring impact of various categories.

Under utilization scoring, the credit limit and balance, as well as the % util, continue to be scored as usual if the account continues to show a balance. Once a closed account reaches $0 balance, either by payment of the debt or by sale of the debt to another party, the credit limit and balance as well as the associated % util is no longer scored. However, if a balance remains, then % util continues to be scored.

Re: Closed accounts count towards total credit?

Anonymous — Thu, 07 Nov 2019 18:48:21 GMT

OP, I would consider going to Experian and sign up for their trial for $1. That will paint a clearer picture for you in terms of what's actually going one. While I like CK for alerts and snapshop of your CR, they're not that helpful with other factors. just my thought on the matter.

Re: Closed accounts count towards total credit?

Anonymous — Sat, 16 Nov 2019 03:54:48 GMT

I'm experiencing something similar - I just last month removed my hubby as Authorized User on one of my CCs, and today on his TransUnion report through CreditWise (Cap1) it shows as follows:

Category: Open Accounts

Responsibility: terminated

Age: 3 years, 3 months

Credit Limit: 3,000

Credit used: 0%

Available Credit: $3,000

etc.

Under "available credit" this $3,000 is definitely included in the total - his real available credit is only $4k, and the app is showing $7k. This account is still open, BUT it is maxed out. I took him off as an AU to reduce his utilization %, hoping it would help his score. Of course now since he has an extra $3k in "available credit" his TU score jumped 54 points! LOL! We'll see how long this lasts before they fully correct the record. Will be interesting to see how it goes.

Re: Closed accounts count towards total credit?

SouthJamaica — Sat, 16 Nov 2019 15:49:14 GMT

@itspaul wrote:
I have a 3 closed revolvers that are counting towards my total CL.
They have a zero balance, but it's helping in my favor to lower my utilization.
This is through Credit Karma so I'm not sure it's a specific to CK or TU?

In FICO they are not being counted towards your total credit limits.