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Closed account w/ balance effecting my utilization and score?

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Egaffne2
Regular Contributor

Closed account w/ balance effecting my utilization and score?

I had a revolving line of credit with a bank that was closed but never sold to collections. The account is still showing a balance on my report and being updated monthly. Previously when I logged into my profile on Experian it did not calculate this account into my utilization but just recently that changed and now it does. Is this account making my utilization high in terms of score calculation? Therefore if I pay it off or down will that help my score?
Current 2023 FICO 8 score - 760 (EX) 758 (TU) 762 (EQ) (FICO 9s seem to be significantly higher)
Starting score - 530
Discover it - $4,200
Citi Custom Cash - $6,600
CFNA Firestone - $3,200
Amex BCE - $2,500
Mission Lane - $1,100
Chase slate (AU) - $3,000
Chase Freedom Flex - $11,100
Lowes Advantage card - $10,000
PNC poop points- $4,500
2 student loans 93% paid off
AMEX loan only 7% paid off so far
Total current Utilization among all accounts- 20%


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3 REPLIES 3
FireMedic1
Community Leader
Mega Contributor

Re: Closed account w/ balance effecting my utilization and score?

Yes it will. It is factored into your single account util and your aggregate util also. Get it done fast before it does go to collections. Then that will be another blow to your credit. Jump on it quick.


Message 2 of 4
Egaffne2
Regular Contributor

Re: Closed account w/ balance effecting my utilization and score?

So basically even though the account is closed it is still having the same effect as if it were open? So it would be the same as paying down a high balance credit card. I will get on it, thanks.
Current 2023 FICO 8 score - 760 (EX) 758 (TU) 762 (EQ) (FICO 9s seem to be significantly higher)
Starting score - 530
Discover it - $4,200
Citi Custom Cash - $6,600
CFNA Firestone - $3,200
Amex BCE - $2,500
Mission Lane - $1,100
Chase slate (AU) - $3,000
Chase Freedom Flex - $11,100
Lowes Advantage card - $10,000
PNC poop points- $4,500
2 student loans 93% paid off
AMEX loan only 7% paid off so far
Total current Utilization among all accounts- 20%


Message 3 of 4
gdale6
Moderator Emeritus

Re: Closed account w/ balance effecting my utilization and score?


@Egaffne2 wrote:
So basically even though the account is closed it is still having the same effect as if it were open? So it would be the same as paying down a high balance credit card. I will get on it, thanks.

Well yes and no. Yes its affecting your utilization percentages and No its not like its open as the CO is being seen as new every month keeping your Fico score depressed. Settle it so it can stop affecting your util and being updated.

Message 4 of 4
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