Closing Account vs Being Maxed out by the Creditor

[Impacted]

Because creditors are tightening lending parameters, I have been the victim of creditors reducing my lines of credit.  This in effect is maxing out my lines which is known to be a major factor in reducing ones FICO score.

Oddly my payment patterns are excellent, and I have been steadily reducing my balances by not charging but simply paying down consistently for years. I know I do owe too much, and am working hard to change that.

What is better for ones FICO Score? Taking a stand and asking the creditor close the account as I continue to paydown, or keeping the account open but being maxed out by the actions of the creditor.

I have noticed that as I continue to paydown, the creditor does another round of credit line reduction to reel in the line.

This practice seem highly manipulative of the creditor and negates ones ability to work to improve scores.

[Anonymous]

Keep them open. If you close the Account you lose the "available" credit limit....which in turns increases you utility and hurts more.

If you were to keep balances on cards and close the available credit you could be looking at utility over 100% which would kill your score.

[Anonymous]

I personally would keep them open. I've heard credit card companies are a little easier to work with when the account is still open. Plus, maybe a year from now or something when your balances are lower, you could call back and ask for a higher limit? Yay for working on reducing your balances! Keep on keeping on

[Anonymous]

Keep  them open-

FICO wise- the UTL will count (good or bad) on a closed acount until the balance is zero.

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1111mel wrote:
Keep them open. If you close the Account you lose the "available" credit limit....which in turns increases you utility and hurts more.

If you were to keep balances on cards and close the available credit you could be looking at utility over 100% which would kill your score.

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