Close Barclays Apple for CLD. How would Util Impact score?

[Anonymous]

I assume this is the beginning of Barclay’s balance chasing me on my Apple rewards card.  I have received the first CLD bringing my utilization to 96%.  This brought my score down significantly due to me already having a thin file.

I knew Barclay’s would do it.  I’m not going to cry over it.  I need to decide my next move.  I intend to close the account.  Once it is closed I have to choose to pay it off or carry a balance at 0%.

How does utilization factor if an account is closed and I bring down the balance to something less scary or pay it off? Do I lose the 0% promo rate on current balance if I close it and carry that balance?

They are are more than likely going to close my account after balance chasing me ( death by a thousand CLDs).  What to do, what to do?

[FinStar]

What is your current balance OP? What other credit cards do you have since you mentioned a thin file? Were you only making minimum payments? Is this the only card carrying such a large balance?

If you decide to close the account, it will have a considerable effect (single CC utilization factors), depending on the CL and balance at closure.

[Anonymous]

Here are my stats:

Overall utilization varies from 10% to 15% (13% when Barclay’s checked)

Barclay’s was at 67% utilization at the time of CLD, now 96%

1 card at 57% due to promo 0% (Citi and it’s a card that is 6mos old)

FICO score on the letter from Barclay’s was 720

No more than 10 inquiries in the last 24mos on any of the 3 bureaus

32 new accounts in the last 24mos, 25+ in the last 12 (mostly bank cards)

I was making payments that equaled the balance divided by the 0% term.  This was significantly more than the minimum

They have reported 14mos of history

The reason from Barclay’s is too many accounts with a balance and too many new accounts.

I can and will fix the first reason, but it will take some time to get it done and reflected on the credit bureaus.  I started on it yesterday.  The second problem I can’t fix.  I can keep it from getting worse.

The result of Barclay’s doing the CLD is a drop in my score of nearly 30 points (693).  

As I type I am realizing I need to pay them off.  They are the wrong creditor for 0% promos.  Totally my fault. As this kind of info is on these boards.  I knew better, but rolled the dice anyway.

They will likely lower my limit some more and probably close my account once I pay it off and another statement cycles. At that time my FICO will regain some of what it lost, but Barclay’s won’t see it before seeing the 30 point drop in my score.  This will spook them even more.  So, will closing it freeze the last reporting at the current limit with a $0 balance?

Edit: Spelling

[NRB525]

Why the rush to close?

Can you list out your cards, their limits and current balances?

Barclays has not closed the account, so a CLD is only limiting their near term risk. As you pay down the balance, there may be other balance chasing, but you still get the 0% promo rate. Eventually the balance chasing will stop, and the card will still be open. Longer term, as Barclays gets more familiar with you, I would expect reduced risk of CLD on other purchases.

If you do close the card, the terms are frozen, you would still have the 0% promo term. Whether it further impacts your score, any different than today I would doubt. If there are no near term apps planned, then score may not be more important than the promo rate.

People often rush to close balance chased cards, but having been through many balance chasing situations I think deciding too fast, without thinking through all the factors, is a mistake.

[AverageJoesCredit]

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@Anonymous wrote:

Here are my stats:

Overall utilization varies from 10% to 15% (13% when Barclay’s checked)

Barclay’s was at 67% utilization at the time of CLD, now 96%

1 card at 57% due to promo 0% (Citi and it’s a card that is 6mos old)

FICO score on the letter from Barclay’s was 720

No more than 10 inquiries in the last 24mos on any of the 3 bureaus

32 new accounts in the last 24mos, 25+ in the last 12 (mostly bank cards)

I was making payments that equaled the balance divided by the 0% term.  This was significantly more than the minimum

They have reported 14mos of history

The reason from Barclay’s is too many accounts with a balance and too many new accounts.

I can and will fix the first reason, but it will take some time to get it done and reflected on the credit bureaus.  I started on it yesterday.  The second problem I can’t fix.  I can keep it from getting worse.

The result of Barclay’s doing the CLD is a drop in my score of nearly 30 points (693).  

As I type I am realizing I need to pay them off.  They are the wrong creditor for 0% promos.  Totally my fault. As this kind of info is on these boards.  I knew better, but rolled the dice anyway.

They will likely lower my limit some more and probably close my account once I pay it off and another statement cycles. At that time my FICO will regain some of what it lost, but Barclay’s won’t see it before seeing the 30 point drop in my score.  This will spook them even more.  So, will closing it freeze the last reporting at the current limit with a $0 balance?

Edit: Spelling

Wow, did i read this right? You say no more than 10 inqs on any of your bureaus  and 25+ new accounts in 12 months? Thats alot of accounts on a thin file. I would love to read what cards you got and your fico scores along the way. Not only is that a tremendous amount of new accounts, even for someone who has a thick file,  carrying high balance would compound the risk factor for any lender.. it would scream credit seeking and risk of default. Not saying thats what they would say, but quite possible by just looking at your stats. Thanks for sharing though, wish you luck on your decision.

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[Anonymous]

@AverageJoes, I rarely carry a balance that is noteworthy for more than 2 mos.  My FICO 8 scores usually hover around 720 to 745.  They’ll recover when Barclay’s is paid off and updates the bureaus plus time passing.

It’s 15ish not 25....just pulled a fresh report.

I have an excellent DTI based solely on my earnings not combined with my spouse.

I’m not the worst offender on these boards.  And regarding the inquiries in the last 12mos my only defense for the bureau with 10 is I became a Navy Federal customer.

If it’s any consolation I am in the garden until it’s time to turn in my lease in 2021.  It won’t look like credit seeking in the rear view mirror...

EDIT: My file may not be as thin as I thought.  I consolidated 10 student loans into one 2 years ago.  Those 10 accounts were reporting positive history for 11 years.  I have positive history going back 13 years with Wells Fargo and then a student loan servicer.  It was enough to support a new mortgage 2yrs ago with Wells Fargo.  The student loan history will be a part of my file for several more years,  I have no derogatory info on my credit.

[Anonymous]

Paid in full the Apple Rewards Barclay’s card.  I kept it open.  We’ll see if Barclay’s leaves it alone. TUC increased 22pts (FICO 8) and EXP increased 30pts (FICO 8) both within 48 hours of reporting.  EFX will update sometime in 2025 and the increase will be meager if anything at all.  I’m not a fan of EFX.