closed account with balance, how much does it hurt?

[Anonymous]

I have a Chase cc, which I closed (opted out) about a year ago. I have a 6500 balance, 11000 cl. The interest rate is about 8%. I'm paying it off. I do have a little bit of higher interest which I'm paying off first. After reading some threads, I believe that it is treated the same as an open account. Is that true?Once I pay it off, I guess I'll take a hit for the age and the cl. (higher util overall) Does a closed account with a balance hurt me on any type of review?

[Anonymous]

why did you close it out? I personally wouldn't have. you have a high cl with them and it seems like some history.

Message Edited by AlishaR on 07-03-2008 02:06 PM

[Creditaddict]

I would call RIGHT NOW and re-open that card.  6500 balance on $0 available credit is probably killing your util which will tank your scores in a big hurry.

[Anonymous]

Thanks for the reply. I closed it a few years ago because Chase was raising my rate. I had to opt out. With my 6500 balance and the 11000cl, I thought that the 11000 cl was used in the utilizations-that  the balance was not hurting me as much as not having the cl in the computation but just the balance.  Is that true?

[Anonymous]

Im not sure about how the util is calculated with closed accounts- you may want to call them and see if they will recon your decision to close and ask for a lower apr. (call the backdoor number)

[Anonymous]

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Fred2280 wrote:

Thanks for the reply. I closed it a few years ago because Chase was raising my rate. I had to opt out. With my 6500 balance and the 11000cl, I thought that the 11000 cl was used in the utilizations-that  the balance was not hurting me as much as not having the cl in the computation but just the balance.  Is that true?

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If the CL is still reported, it is still included in the calculation, even if the card is closed.

Once a closed card has a $0 balance, then the CL is excluded.

[Anonymous]

Thanks!!