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Closed account w/ balance effecting my utilization and score?

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 2021 FICO 8 score - 686 (EX)
Starting score - 530
Goal score - 700s across the board this year
Discover it - $2,000
CFNA Firestone - $2,400
Amex BCE - $1,000
Mission Lane - $1,100
Chase card (AU) - $3,000
Capital One Quicksilverone - $600
Lowes Advantage card - $3,000
BBVA clearpoints - $1,200
2 student loans 93% paid off
Current Utilization - 13%


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3 REPLIES 3
FireMedic1
Super 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.





My posts are JMHO. My siggy is not to brag at all. Just sharing my experiences after learning here from rebuild to recovery after BK DC 540's. And to show fellow members what can be accomplished when you do it right and play the FICO Credit Game.
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 2021 FICO 8 score - 686 (EX)
Starting score - 530
Goal score - 700s across the board this year
Discover it - $2,000
CFNA Firestone - $2,400
Amex BCE - $1,000
Mission Lane - $1,100
Chase card (AU) - $3,000
Capital One Quicksilverone - $600
Lowes Advantage card - $3,000
BBVA clearpoints - $1,200
2 student loans 93% paid off
Current Utilization - 13%


Message 3 of 4
gdale6
Moderator

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.

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