Cancelling a card with balance

[dallas01]

If I cancel a card with a balance will my Fico score still react as if it was open as I’m making payments?

[Anonymous]

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@dallas01 wrote:

If I cancel a card with a balance will my Fico score still react as if it was open as I’m making payments?

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Yes

[SouthJamaica]

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@dallas01 wrote:

If I cancel a card with a balance will my Fico score still react as if it was open as I’m making payments?

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I would never close a card with a balance. Sometimes it will be reported as having a zero credit limit, and you will wind up being reported as over limit.

Don't risk it.

[Anonymous]

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@dallas01 wrote:

If I cancel a card with a balance will my Fico score still react as if it was open as I’m making payments?

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OP, I am curious as to why you want to do this. Are you being balance-chased? If so, I understand why you would want to—it keeps your limit intact.

[RobertEG]

A consumer does not "cancel" a credit card account.

The consumer can close the account, which thereafter prevents any further new purchases/charges on the account.

However, the terms of the account agreement remain in effect regarding any unpaid debt, and FICO continues to score the % uti of the revolving debt until it is paid.

If payments are late, they can still be reported to the CRA as monthly delinquencies, the account can be charged-off if the delinquency reaches the CO criteria, and a delinquent debt can be referred for collection.  Thus, it continues to be scored under payment history, and any derogs continue to be scored after account closure until they ultimately become excluded for the creditor voluntarily deletes.

Once the debt on a revolving account is paid, it is thereafter removed from scoring under % util, so you then lose the CL in the denominator.

[Anonymous]

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@RobertEG wrote:

A consumer does not "cancel" a credit card account.

The consumer can close the account, which thereafter prevents any further new purchases/charges on the account.

However, the terms of the account agreement remain in effect regarding any unpaid debt, and FICO continues to score the % uti of the revolving debt until it is paid.

If payments are late, they can still be reported to the CRA as monthly delinquencies, the account can be charged-off if the delinquency reaches the CO criteria, and a delinquent debt can be referred for collection.  Thus, it continues to be scored under payment history, and any derogs continue to be scored after account closure until they ultimately become excluded for the creditor voluntarily deletes.

Once the debt on a revolving account is paid, it is thereafter removed from scoring under % util, so you then lose the CL in the denominator.

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+1

[dallas01]

Yes my utilization went up to 34% overall but American Express lowered my limit from 6000 to 3900. I have another card that they haven’t messed with. 

And i I meant closed not cancelled.