Most Meaningful Thresholds

[Anonymous]

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@Anonymous wrote:

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@Anonymous wrote:

@Anonymous 

Isn't a closed account w/ a balance, no matter what the original CL was, considered maxxed out/100% util?

So anything paid will be based off of the closing balance for figuring out util?

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@Anonymous no I don't believe that. I believe they're factored with their balance & credit limit. Read the thread linked in post 7 of the Primer by NRB525. You're thinking of the theories of chargeoffs affecting utilization and that bled over into closed accounts I think  in some of the threads. Jmo

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Any easy way to find out is have OP pull EQ CR from annual credit report. It lists the utilization under each account entry.

[Anonymous]

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@Anonymous wrote:

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@Anonymous wrote:

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@Anonymous wrote:

@Anonymous 

Isn't a closed account w/ a balance, no matter what the original CL was, considered maxxed out/100% util?

So anything paid will be based off of the closing balance for figuring out util?

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@Anonymous no I don't believe that. I believe they're factored with their balance & credit limit. Read the thread linked in post 7 of the Primer by NRB525. You're thinking of the theories of chargeoffs affecting utilization and that bled over into closed accounts I think  in some of the threads. Jmo

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Any easy way to find out is have OP pull EQ CR from annual credit report. It lists the utilization under each account entry.

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@Anonymous I'm sorry but that would not answer the question. That is the CRA calculating the utilization.

Whenever the fico score is generated raw data goes into the fico black box and it calculates utilization itself by its own methods on the accounts and in the ways that it chooses.

So the fact that the CRA says that the utilization on an account is it a certain level does not mean the algorithm treats it the same way, unfortunately.

[SouthJamaica]

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@credit8502020 wrote:

Hi All! 

I have a closed credit card with a balance that I am paying off. 

I recall hearing mention of different thresholds that will impact your scores the most. 

Can someone share with me the different thresholds for credit card utilization? I don't recall where I read it exactly. 

Ex. 30%, 10%, less than 9%, etc.

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30% is a major threshold in individual account utilization. Best to be at 28% or less. Since it's a closed account, pay it off as fast as you can.

[SouthJamaica]

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@Anonymous wrote:

@Anonymous 

Isn't a closed account w/ a balance, no matter what the original CL was, considered maxxed out/100% util?

So anything paid will be based off of the closing balance for figuring out util?

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There have been reports of that happening, but that's not the usual case. Usually the account is reported with the regular credit limit and the balance.  In computing aggregate utilization, the balance gets counted in utilization, and the limit does not.

[Anonymous]

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@SouthJamaica wrote:

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@Anonymous wrote:

@Anonymous 

Isn't a closed account w/ a balance, no matter what the original CL was, considered maxxed out/100% util?

So anything paid will be based off of the closing balance for figuring out util?

---

There have been reports of that happening, but that's not the usual case. Usually the account is reported with the regular credit limit and the balance.  In computing aggregate utilization, the balance gets counted in utilization, and the limit does not.

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Ok so then there is that, the aggregate is calculated differently. I knew it couldn't retain all the benefits of having an open card when calculating util.

[Anonymous]

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@SouthJamaica wrote:

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@Anonymous wrote:

@Anonymous 

Isn't a closed account w/ a balance, no matter what the original CL was, considered maxxed out/100% util?

So anything paid will be based off of the closing balance for figuring out util?

---

There have been reports of that happening, but that's not the usual case. Usually the account is reported with the regular credit limit and the balance.  In computing aggregate utilization, the balance gets counted in utilization, and the limit does not.

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@SouthJamaica what brings you to that conclusion?

[Anonymous]

https://ficoforums.myfico.com/t5/Credit-Cards/Does-it-hurt-to-have-a-balance-on-a-closed-card-Does-o...

[SouthJamaica]

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@Anonymous wrote:

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@SouthJamaica wrote:

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@Anonymous wrote:

@Anonymous 

Isn't a closed account w/ a balance, no matter what the original CL was, considered maxxed out/100% util?

So anything paid will be based off of the closing balance for figuring out util?

---

There have been reports of that happening, but that's not the usual case. Usually the account is reported with the regular credit limit and the balance.  In computing aggregate utilization, the balance gets counted in utilization, and the limit does not.

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@SouthJamaica what brings you to that conclusion?

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1.  Personal experience to that effect.

2.  Numerous posts on MyFICO, some from very knowledgeable members, to that effect.

3.  The statement by a FICO insider in FICO's Q&A thread that balances of closed accounts are taken into account in utilization (with no answer to whether the limits are also taken into account).

4.  Logic:  it is logical that a limit which is no longer available would not be considered in the available credit part of the computation of aggregate utilization, while the balance on a closed account is still a valid debt.

[SouthJamaica]

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@Anonymous wrote:
https://ficoforums.myfico.com/t5/Credit-Cards/Does-it-hurt-to-have-a-balance-on-a-closed-card-Does-owing-1-000/m-p/6095929/highlight/true#M1736023

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Yes I am aware of that thread. Please read what I wrote in this post in that thread:

https://ficoforums.myfico.com/t5/Credit-Cards/Does-it-hurt-to-have-a-balance-on-a-closed-card-Does-owing-1-000/m-p/6096277#M1736094

and in my subsequent posts in that thread.

[Anonymous]

SJ Interesting. Perhaps you’re correct.

Apparently the MF frontend may be considered more reliable than any of the other frontends, per what we learned from the experts and we also know how it’s rounded now.

So we know a little more now than we did at the time of that thread. I’ve also learned some weird things about how HELOCs are calculated at EQ. I need to go back and read that thread and apply the knowledge and see what I come up with.

Do you have any of those past posts handy that you’re speaking of? I haven’t researched it again lately. but I remember before it was conflicting.

But I can conclusively say that logic has nothing to do with it! 😉 but I do admit it is logical.