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Utilization and closed credit card accounts ?

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gilbertlok
Member

Utilization and closed credit card accounts ?

Have a question. So out of the blues citi decided to lower my limit from 15k to nearly 3k and I say nearly because It seems they wanted to match my balance. Never use it much and never been late period with any of my other cards and them.

 

Now more score drop tremendously because it shows 98% utilization on my credit report over that one silly card. If I lose the account would the utilization go back to normal. I am done with citi. I understand I owe them money regardless which is fine. 

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GatoradeZeroGuy
Valued Contributor

Re: Utilization and closed credit card accounts ?


@gilbertlok wrote:

Have a question. So out of the blues citi decided to lower my limit from 15k to nearly 3k and I say nearly because It seems they wanted to match my balance. Never use it much and never been late period with any of my other cards and them.

 

Now more score drop tremendously because it shows 98% utilization on my credit report over that one silly card. If I lose the account would the utilization go back to normal. I am done with citi. I understand I owe them money regardless which is fine. 


no, closing the account won't help with the utilization, you should pay them off as soon as you can, or perhaps ask for a CLI to bring the CL back up. 

 

do you have high balances on other cards? Citi seems to think you're in trouble if they've CLD balanced chanced you all the way from 15k to 3k. 

Starting FICO 8:

Current FICO 8:

1/6, 5/12, 12/24




Message 2 of 4
gilbertlok
Member

Re: Utilization and closed credit card accounts ?

No do not have high balances. Unless for some reason they can see my amex which has no set limit. I use 20k a month but I pay it ever 60 days. Yes I know that sounds odd. But the plum card only gives you 1.5 cash back if you pay 10 days before the 60th day. 

As for the next thing, Oh I was under the assumption that utilization is only on active credit cards and me closing it will just be considered stating on the tradeline the the account was closed with a balance then I pay it off after. I've been with them 6 years and I ask for a reversal and explain how they ruined my score for something unjustifiable and they say it's nothing they can do but to call equifax lol. 

Message 3 of 4
SouthJamaica
Mega Contributor

Re: Utilization and closed credit card accounts ?


@gilbertlok wrote:

Have a question. So out of the blues citi decided to lower my limit from 15k to nearly 3k and I say nearly because It seems they wanted to match my balance. Never use it much and never been late period with any of my other cards and them.

 

Now more score drop tremendously because it shows 98% utilization on my credit report over that one silly card. If I lose the account would the utilization go back to normal. I am done with citi. I understand I owe them money regardless which is fine. 


If the account is closed, it will still show up as 98% utilization.


Total revolving limits 741200 (620700 reporting) FICO 8: EQ 701 TU 704 EX 685

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