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Closed account part of utilization or not?

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nmjacobs
Contributor

Closed account part of utilization or not?

I have a closed account from Credit One. It has a balance of just under what the limit was. On my reports (Credit Check Total, Ck) it shows closed, the balance, and monthly payment. I'm trying to get my utilization down so my scores will finally get over that 600 mark. I'm assuming this closed card is still being factored in but can someone confirm? I've searched the threads and there are various answers to this. My understanding is this card is being counted in util since it is reporting a balance and monthly payment. I'm just confused because making payments on this one hasn't given me as much of a jump compared to my two open Cap One cards.
Message 1 of 8
7 REPLIES 7
Anonymous
Not applicable

Re: Closed account part of utilization or not?

Yes, being closed still factors utilization. Because it's closed it has no credit line thus it will always be at 100% utilization until you reach a ZERO balance.

Message 2 of 8
nmjacobs
Contributor

Re: Closed account part of utilization or not?

So even though Credit One updates the new balance (I'm making monthly payments still) it's still being counted as 100% util. since it's closed? If that's the case, I guess I should pay it off first before my two open ones? I'm at 30% on one and 75% on the other so this closed account is the highest.
Message 3 of 8
Anonymous
Not applicable

Re: Closed account part of utilization or not?

It's never a good idea to have a balance on a closed account. If your going to close an account, it's always a good idea to close with a zero balance.
Message 4 of 8
nmjacobs
Contributor

Re: Closed account part of utilization or not?

It was closer by the creditor about a year ago.
Message 5 of 8
nmjacobs
Contributor

Re: Closed account part of utilization or not?

And thank you!!!
Message 6 of 8
Anonymous
Not applicable

Re: Closed account part of utilization or not?

Why did the creditor close it?
Message 7 of 8
echoecho
Regular Contributor

Re: Closed account part of utilization or not?

Now looking back at it I think that was the reason I was in the low 700 for a long time. Around 2010-11 Citi and chase decided they were going to increase the apr on their card. Take it or close the cc. I chose Citi with higher rate to close. I paid monthly on it and never paid attention. 2015 I needed a new car when the other one finally died. Instant approval no problem. Year later I decided it was time to mirtgage refi and decided to close / paid down uti. Soon as I closed the Citi I've notice a 15-20 point spike up. I think the closing of 100% uti raised my score. Never really thought about it until I read this thread.
Message 8 of 8
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