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Credit Utilization? - Another Question

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Anonymous
Not applicable

Re: Credit Utilization?

I didn't realize you were current on the account and not delinquent at all. This is why I asked about SOL.

 

It sounds like they decreased your CL before closing the account, so they may in fact be reporting correctly.

 


JBoswell wrote:

... and now I'm confused. lol. does the credit limit factor in or no? 

 

 Yes, I began this by saying no and had thought for a while that the answer was no. I recently learned that the answer is yes, the CL is factored in. I confirmed this by pulling a new report here from myFICO and looking at the closed account on there. When I calculate the spouse's utilization it matches 100% to the utilization % showing on the reports, as long as I included that CL on the closed account.

 

 As far as my own stuff I was really just trying to understand HOW the credit limit is being factored in and why the hell it dropped and what I can do about it and etc. It seems like you get a lot of different opinions on this. People have said the credit limit still counts, or it doen't or it's the high balance or it's 0 and my head popped and I now have no idea lol. If the credit limit DOES factor in, then I should obviously try to get it to report accurately, if it doesn't or if it reports as 0 or the high balance, then there probably isn't much of anything I can do besides continue to pay the monthly amount and keep the account in the "paid/pays as agreed" status until I can pay the whole thing off.

 

Anytime there is no CL, whether the account is closed or open, the score is going to use "H/C" or "largest past balance" for the CL when calculating utilization.

 

If the CL is reported at $100, it will use that.

 

If not reported, it will use largest past balance/HC.

 

 


 

 

Message 21 of 37
Anonymous
Not applicable

Re: Credit Utilization?


@Anonymous wrote:

@Anonymous wrote:
Credit limit on a closed account does not factor into utilization. The balance still does.

Credit limit DOES factor into utilization on closed accounts. It is happening with my spouse's closed account.

Message Edited by sidewinder on 04-20-2009 06:20 AM

If you do a search here on closed accounts you'll see it mentioned over and over again by everyone, including other moderators that credit limits on closed accounts do not factor into your score. Even Fused's sticky on closed accounts mentions this.

Message Edited by VEEnVEGAS on 04-20-2009 01:25 PM
Message 22 of 37
llecs
Moderator Emeritus

Re: Credit Utilization?


VEEnVEGAS wrote:

@Anonymous wrote:

@Anonymous wrote:
Credit limit on a closed account does not factor into utilization. The balance still does.

Credit limit DOES factor into utilization on closed accounts. It is happening with my spouse's closed account.

Message Edited by sidewinder on 04-20-2009 06:20 AM

If you do a search here on closed accounts you'll see it mentioned over and over again by everyone, including other moderators that credit limits on closed accounts do not factor into your score. Even Fused's sticky on closed accounts mentions this.

Message Edited by VEEnVEGAS on 04-20-2009 01:25 PM



I can give a personal testimony and say that closed accounts, with a balance, do continue to factor into utilization. DW had a CapOne CO that read as 250% and 300% utilized, depending on the CRA, before CapOne sold it and reported $0.

There's always gonna be a little confusion as nobody, that we know of anyway, has a copy of the FICO formula. I think the operative words are "closed with a balance". CCs closed without a balance do NOT factor into utilization, as you pointed out.
Message 23 of 37
Anonymous
Not applicable

Re: Credit Utilization?

I think you misunderstand what the discussion is. . We both agree that credit balances are factored into utilization. I say credit limits aren't, which is exactly why your utilization on a closed carld could be 250%. Sidewinder says the limits as well as balances are used to determine UTil.
Message 24 of 37
llecs
Moderator Emeritus

Re: Credit Utilization?


VEEnVEGAS wrote:
I think you misunderstand what the discussion is. . We both agree that credit balances are factored into utilization. I say credit limits aren't, which is exactly why your utilization on a closed carld could be 250%. Sidewinder says the limits as well as balances are used to determine UTil.


In my DW's case, the CapOne CO was her only CC reporting at that time (open or closed). The balance was $750 with a limit of $250. It was reporting as a closed CO with 300% util. On another report, her "high balance" was reported as $300ish with a util on that report of 250%.
Message 25 of 37
Anonymous
Not applicable

Re: Credit Utilization?


VEEnVEGAS wrote:

If you do a search here on closed accounts you'll see it mentioned over and over again by everyone, including other moderators that credit limits on closed accounts do not factor into your score. Even Fused's sticky on closed accounts mentions this.

Message Edited by VEEnVEGAS on 04-20-2009 01:25 PM

If the account has a $0 balance....this is true.

 

But, we are talking about closed accounts with balances.

Message 26 of 37
Anonymous
Not applicable

Re: Credit Utilization?




@Anonymous wrote:

If you do a search here on closed accounts you'll see it mentioned over and over again by everyone, including other moderators that credit limits on closed accounts do not factor into your score. Even Fused's sticky on closed accounts mentions this.


 

@Anonymous wrote:

 

 

If the account has a $0 balance....this is true.

         But, we are talking about closed accounts with balances.


I'm not sure how that makes any sense at all. If there is no balance on the card then the point is moot. No balance, no hit to utilization.

 

According to anything I've ever read the balance on a closed account counts in utilization while the credit limit doesn't.

 

I can not see the OP having any luck at all on having this changed on her credit reports. She is at 14000% utilization on that card.

 

Guess we'll agree to disagree on this. 

Message 27 of 37
Junejer
Moderator Emeritus

Re: Credit Utilization?

One thing (a good thing) about this forum is that it is ever evolving in knowledge. As we learn new things, we can humbly acknowledge that we were lacking knowledge in that area, but here is the real deal. I have it on good authority that what Sidewinder and Llecs is stating is absolutely correct. I didn't used to think that way, but I know better now.






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Message 28 of 37
Anonymous
Not applicable

Re: Credit Utilization?


@Junejer wrote:
One thing (a good thing) about this forum is that it is ever evolving in knowledge. As we learn new things, we can humbly acknowledge that we were lacking knowledge in that area, but here is the real deal. I have it on good authority that what Sidewinder and Llecs is stating is absolutely correct. I didn't used to think that way, but I know better now.

Then someone needs to erase hundreds of posts here on this forum...and delete Fused's sticky on closed cards and their effect on our credit.

 

I could do a quick search here and copy and paste dozens of quotes from moderators here saying exactly what I've said.

 

I'm still betting OP will never be able to have this changed on her credit report because it's right.

Message Edited by VEEnVEGAS on 04-21-2009 10:11 PM
Message 29 of 37
Junejer
Moderator Emeritus

Re: Credit Utilization?

If we changed every post where there is an error, that would be all that we did around here.

I agree that the TL is being reported correctly. Account is closed and the CL has been reduced to what they wanted it to be reduced to. OP is at 14000% util, and that's being reported correctly.






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Current Score: 846
Goal Score: 850

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Message 30 of 37
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