Utilization Rate (W/Closed Account)

[tschaet]

I currently have two open credit cards that I am paying down on.  I am hoping to get the utilization low on those.  Currently it's in the 90s %-wise.  I do, however, have a third card that was closed (not by me) when it was just beyond its limit.  I am currently making payments on it, but it's a large amount ($14K) and will take me quite some time to pay down.  Will that credit card continue to affect my utilization rate even though it has been closed?  

Credit utilization seems to be the main thing tanking my scores...

[NRB525]

Yes, utilization that high will affect your scores. You can't close a high-utilization card to avoid that effect. 

[SouthJamaica]

---

@tschaet wrote:

I currently have two open credit cards that I am paying down on.  I am hoping to get the utilization low on those.  Currently it's in the 90s %-wise.  I do, however, have a third card that was closed (not by me) when it was just beyond its limit.  I am currently making payments on it, but it's a large amount ($14K) and will take me quite some time to pay down.  Will that credit card continue to affect my utilization rate even though it has been closed?  

Credit utilization seems to be the main thing tanking my scores...

---

Yes it will continue to affect your score until it's paid off.

[tschaet]

Thanks.  I figured so.  

Is utilization something that you have to show a pattern of low utilization for it to really increase your score, or once it drops and reflects on your reports, then that's when it increases?

[SouthJamaica]

---

@tschaet wrote:

Thanks.  I figured so.  

Is utilization something that you have to show a pattern of low utilization for it to really increase your score, or once it drops and reflects on your reports, then that's when it increases?

---

No, utilization 'has no memory'.  It's based totally on your current reading as of the day they pull your report.

[collics]

Is it possible to settle the balance for a lower amount?

Not sure how it works if the card wasn't Charged Off.

Good luck OP.

[FinStar]

---

@collics wrote:

Is it possible to settle the balance for a lower amount?

Not sure how it works if the card wasn't Charged Off.

Good luck OP.

---

@collics - not unless the lender agrees to lower the APR substantially (doubtful), the OP qualifies for some sort of hardship with the lender or is enrolled in some sort of DMP.

[CreditInspired]

---

@tschaet wrote:

I currently have two open credit cards that I am paying down on.  I am hoping to get the utilization low on those.  Currently it's in the 90s %-wise.  I do, however, have a third card that was closed (not by me) when it was just beyond its limit.  I am currently making payments on it, but it's a large amount ($14K) and will take me quite some time to pay down.  Will that credit card continue to affect my utilization rate even though it has been closed?  

Credit utilization seems to be the main thing tanking my scores...

---

Hi OP

If you don't mind, provide us the CC name, CLs, APR, min pymt, and outstanding balance on those 3 cards, and also amount of disposable income you can throw at them. We'll be able to guide you on how to lower balances strategically. 

[tschaet]

---

@CreditInspired wrote:

---

@tschaet wrote:

I currently have two open credit cards that I am paying down on.  I am hoping to get the utilization low on those.  Currently it's in the 90s %-wise.  I do, however, have a third card that was closed (not by me) when it was just beyond its limit.  I am currently making payments on it, but it's a large amount ($14K) and will take me quite some time to pay down.  Will that credit card continue to affect my utilization rate even though it has been closed?  

Credit utilization seems to be the main thing tanking my scores...

---

Hi OP

If you don't mind, provide us the CC name, CLs, APR, min pymt, and outstanding balance on those 3 cards, and also amount of disposable income you can throw at them. We'll be able to guide you on how to lower balances strategically. 

---

I have three cards:

•  Discover It
  • CL: $1250
  • Balance: $1246.01
  • APR: 18.24%
  • Minimum payment: $36.27
• Capital One Quicksilver
  • CL: $2000
  • Balance: $1987.94
  • APR: 24.74%
  • Minimum payment: $45.00 
• Navy Federal Credit Union (Closed)
  • CL: $13,500.00
  • Balance: $14,123.16
  • APR: 6% (temporarily due to payment agreement)
  • Minimum payment: $143 (due to payment agreement) 

[EAJuggalo]

---

@tschaet wrote:

---

@CreditInspired wrote:

---

@tschaet wrote:

I currently have two open credit cards that I am paying down on.  I am hoping to get the utilization low on those.  Currently it's in the 90s %-wise.  I do, however, have a third card that was closed (not by me) when it was just beyond its limit.  I am currently making payments on it, but it's a large amount ($14K) and will take me quite some time to pay down.  Will that credit card continue to affect my utilization rate even though it has been closed?  

Credit utilization seems to be the main thing tanking my scores...

---

Hi OP

If you don't mind, provide us the CC name, CLs, APR, min pymt, and outstanding balance on those 3 cards, and also amount of disposable income you can throw at them. We'll be able to guide you on how to lower balances strategically. 

---

I have three cards:

•  Discover It
  • CL: $1250
  • Balance: $1246.01
  • APR: 18.24%
  • Minimum payment: $36.27
• Capital One Quicksilver
  • CL: $2000
  • Balance: $1987.94
  • APR: 24.74%
  • Minimum payment: $45.00 
• Navy Federal Credit Union (Closed)
  • CL: $13,500.00
  • Balance: $14,123.16
  • APR: 6% (temporarily due to payment agreement)
  • Minimum payment: $143 (due to payment agreement) 

---

It's actually even worse than you think.  Utilization is figured as revolving debt as a percentage of open credit lines.  So right now you're showing of $17,600 with an open credit lines of $3,500.  You're not going to see much of a change until you get the total amount you owe below $3,150.

The best thing you can do right now is pay the minimums on the Navy and Discover and pay as much as you can on the CapOne.  Once the CapOne is paid off go to the Discover, then pay off Navy last.