Closed Revolving Account with large balances

[creditpete]

I've already pulled my own CRs.  All balances and CLs are correct in the trimerge. 

The FAKO scores are much, much higher on my CRs but I guess that's not uncommon.

[09Lexie]

To answer your question about what they should use:

They should use all outstanding debt -closed or open. To be sure, your LO or UW will be able to give you that figure now.

[creditpete]

yes, but did FICO use the credit limits of the closed revolving accounts with outstanding balances in its calculation of my util?

[09Lexie]

Yes, as long as there is a balance showing on a closed account.

Edit: and the original CL is showing

[creditpete]

So then theoretically, when thes balances of these closed accounts update on my CRs as 0, the credit limits will no longer be used in the utilization calculation and my utilization won't change at all, hence, no score change.

This is my fear.

[09Lexie]

If the closed accounts show anything other than a zero CL but a zero balance -it will not be used in utilization.

[creditpete]

I understand that.

So from what you're telling me it was pointless to pay off these 3 accounts as it will have no effect on my credit score.

[09Lexie]

I didn't say that at all. If they are closed with zero balances then the debt won't count against your util but keeping them with a balance could affect your dti ratio.

[creditpete]

From my calculations, even though I paid off $25k worth of debt my utilization will not change and therefore the scoring (most important to me right now) will not change.  This is what I am taking away from this thread.  Is that safe to assume?

[09Lexie]

I would hate to assume anything. If you do not wish to contact your LO and ask them if paying off the closed accounts was helpful then maybe a post in the mortgage section will give you some assistance.

Meanwhile, I will keep looking for answers for you.