@credit8502020 wrote:
@Slabenstein wrote:With regards to your main question, I'm not sure how balances on closed revolvers are handled on the mortgage FICO versions. I would guess that the balance on a closed revolver does count towards your aggregate utilization, though I'm unsure about whether it still has a scorable individual util. With regards to agg util, if my guess is correct the score impact should be whatever the % util reduction from decreasing your total revolving balances by $2800 provides. Hopefully someone with more knowledge can give you a more complete answer, both to how it would be handled generally on mortgage versions and any differences among the separate versions used by the three bureaus.
With regards to mortgage scores, you say that you can see the paydown "factored into" EX8 on their site. Is this because you have already paid off the balance, but only EX has updated? Or are you looking at the score simulator? If the latter, score simulators are generally not very accurate and so aren't a good way to judge the potential score impacts of changes to your profile. Also be aware, if you aren't already, that EX8 is not a mortgage score; the Experian version used in a trimerge is EX2.
@Slabenstein Thank you for your reply.
With regards to mortgage scores, you say that you can see the paydown "factored into" EX8 on their site. Is this because you have already paid off the balance, but only EX has updated?
No, I'm just referring to the summary that they give that shows the overall credit usage. It is factoring in the Discover credit balance in as "credit used" and it is not factoring it in the credit limit. So I can see it definitely being factored in on EX8, although not sure of all of the differences, if any, between how they factor in the balance on a closed account vs. open account.
And thanks. Yes, I'm aware of the differences in the scores. I just only have EX8 right now since I'm not currently using MyFico to monitor my mortgage scores. I'm looking to get a new credit card within the next couple of months first. The mortgage will not be right away, but I'm still working now on the best things to do to improve mortgage scores and all scores.
Ah, I misunderstood. You mean that the card's balance is included in your total revolving balances on Experian's front-end stuff. On score 8, yeah, I would expect the card to count towards utilization that way on all three bureaus: 2800 as part of total revolving balances, but the card's former limit not being included in TCL. As you can see above, there are still some things that we don't know about how balances on closed accounts affect scores, but I expect you will see a positive change across the three bureaus on FICO 8 and the mortgage scores if you pay off this balance. How impactful of a change will depend on your profile, e.g. what your util % is before and after payoff, the total number of accounts you have with balances, etc. Having a balance on a closed revolver can also look bad on manual review, which is another reason to address it, imo.
@Anonymous wrote:
@credit8502020 wrote:Hi All!
I'm preparing to pay down a closed Discover account.
CL: $10,600
Current Balance: $2800
Does anyone have data points on how this closed account balance being removed impacts mortgage scores and also Equifax and TU? I can see how it is factored into Experian (FICO 8 on their site), but I'm not sure how it may impact the Equifax and Transunion scores. Are there data points that support CRAs weighing aggregate utilization differently?
Thank you!
@credit8502020 Hey how are you doing? Helping another client? I hope you're doing well.
Great advice all above. I agree that EQ5 is the most likely to show an increase. The reason is, it is the most sensitive to number of accounts with a balance as far as the mortgage scores go, I believe, so it could show an increase even if an aggregate utilization threshold or balance threshold is not crossed.
I personally don't I think the fact that the account is closed has much significance, that simply means it's not open to new charges and the credit line outstanding is not available.
as stated above, the balance should still count towards aggregate Revolving Balances and utilization. I don't know whether the credit limits are counted in the denominator or not, but I somehow doubt it. I also don't know whether closed accounts are accounted for by individual revolving utilization.I am considering doing some testing on those fronts at the urging of my friend @SouthJamaica though.
@Anonymous Thank you for your feedback! I'm great! Thanks for asking. How are you?
Still helping clients, but this one is for me. 
Yes, I can't tell if it's factored into the denominator on EQ and TU. It wasn't factored into EX, so I'm not expecting it to be factored in, but I'm not sure.
How about for FICO 8? You anticipate that it will still increase those scores as well, right? I'll be going from a 13% utilization rate to under 1%.
@credit8502020 wrote:
@Anonymous wrote:
@credit8502020 wrote:Hi All!
I'm preparing to pay down a closed Discover account.
CL: $10,600
Current Balance: $2800
Does anyone have data points on how this closed account balance being removed impacts mortgage scores and also Equifax and TU? I can see how it is factored into Experian (FICO 8 on their site), but I'm not sure how it may impact the Equifax and Transunion scores. Are there data points that support CRAs weighing aggregate utilization differently?
Thank you!
@credit8502020 Hey how are you doing? Helping another client? I hope you're doing well.
Great advice all above. I agree that EQ5 is the most likely to show an increase. The reason is, it is the most sensitive to number of accounts with a balance as far as the mortgage scores go, I believe, so it could show an increase even if an aggregate utilization threshold or balance threshold is not crossed.
I personally don't I think the fact that the account is closed has much significance, that simply means it's not open to new charges and the credit line outstanding is not available.
as stated above, the balance should still count towards aggregate Revolving Balances and utilization. I don't know whether the credit limits are counted in the denominator or not, but I somehow doubt it. I also don't know whether closed accounts are accounted for by individual revolving utilization.I am considering doing some testing on those fronts at the urging of my friend @SouthJamaica though.
@Anonymous Thank you for your feedback! I'm great! Thanks for asking. How are you?
Still helping clients, but this one is for me.
How about for FICO 8? You anticipate that it will still increase those scores as well, right? I'll be going from a 13% utilization rate to under 1%.
@credit8502020 hanging in there thank you for asking. I think as you cross the 10% aggregate threshold you'll see some points most likely. That applies to most likely all versions. But I would caution you from making conclusions based on the Experian front end, we don't know that it reflects what the algorithm is doing behind the scenes.
@Anonymous wrote:
@credit8502020 wrote:
@Anonymous wrote:
@credit8502020 wrote:Hi All!
I'm preparing to pay down a closed Discover account.
CL: $10,600
Current Balance: $2800
Does anyone have data points on how this closed account balance being removed impacts mortgage scores and also Equifax and TU? I can see how it is factored into Experian (FICO 8 on their site), but I'm not sure how it may impact the Equifax and Transunion scores. Are there data points that support CRAs weighing aggregate utilization differently?
Thank you!
@credit8502020 Hey how are you doing? Helping another client? I hope you're doing well.
Great advice all above. I agree that EQ5 is the most likely to show an increase. The reason is, it is the most sensitive to number of accounts with a balance as far as the mortgage scores go, I believe, so it could show an increase even if an aggregate utilization threshold or balance threshold is not crossed.
I personally don't I think the fact that the account is closed has much significance, that simply means it's not open to new charges and the credit line outstanding is not available.
as stated above, the balance should still count towards aggregate Revolving Balances and utilization. I don't know whether the credit limits are counted in the denominator or not, but I somehow doubt it. I also don't know whether closed accounts are accounted for by individual revolving utilization.I am considering doing some testing on those fronts at the urging of my friend @SouthJamaica though.
@Anonymous Thank you for your feedback! I'm great! Thanks for asking. How are you?
Still helping clients, but this one is for me.
How about for FICO 8? You anticipate that it will still increase those scores as well, right? I'll be going from a 13% utilization rate to under 1%.
@credit8502020 hanging in there thank you for asking. I think as you cross the 10% aggregate threshold you'll see some points most likely. That applies to most likely all versions. But I would caution you from making conclusions based on the Experian front end, we don't know that it reflects what the algorithm is doing behind the scenes.
@Anonymous Keep hanging in there! 
Ok. Gotcha. Duly noted. The day when the front end reflects the behind the scenes will be an exciting day. LOL!
@credit8502020 wrote:@Anonymous @Slabenstein @Anonymous @SouthJamaica
I want to check my scores before and after paying off this card. Do you know if Credit Check Total will update my FICO 8 as it changes within the month or does it just give you one score similar to how the free Experian score is generated each month? I've used MyFico, but I noticed how it has been delayed. I just want to use the best service that I can see how my scores improved.
Also I know AZEO is the best for mortgage scores, is that the best way to optimize your scores when preparing to apply for credit cards as well (For Fico 8)? Thanks!
I use CCT free trials to check my scores. I can't say how it compares to other services, but I can check all three FICO8's plus EX2 once every ten day period. I wait for the change I'm wanting to score to show on EX, which updates there daily, and then give it maybe three days for any posting delay and then pull the three bureau. If you're getting your free EX8 from Experian as opposed to Discover I don't know whether this would work, since Experian and CCT use the same account.
AZEO also works for making sure you're maximizing your profile for score 8. (It just has an extra wrinkle if you have any AU cards.)
@credit8502020 I forgot your AZEO question but @Slabenstein correctly answered it.
@credit8502020 sorry dictation error Edited & corrected 