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Utilization Question - On Closed Account Now Looks Like Been Reopened

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Frequent Contributor

Utilization Question - On Closed Account Now Looks Like Been Reopened

Hello All!

 

I have two accounts that were closed in 2012 and reported as closed with $0 CL that I noticed on my recent 2015 report that it is now reported as opened with a credit limit that is way less than the balanced owed. Is this now effecting my FICO score uitlization? Is it normal for cc companies to do this and had it in fact been reopened? As I haven't seen any documentation that the cards have been reopened all I have been doing is just paying paying paying...thanks in advanced for your responses Smiley Happy

 

Victoria Secrets - Balance $990 CL listed as $150

New York and Co - Balance $574 CL listed as $150


Starting Score: EQ 615 (MyFICO) TU 588 (Walmart) EX 576 (EX Website) Started this journey 06/26/2014
Current Score: EQ 710 (MyFICO) TU 673 (Walmart) TU 726 (MyFICO) EX 706 (MyFICO) As of Sep 2015
Goal Score: 750 or higher across the board

Take the myFICO Fitness Challenge
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Super Contributor

Re: Utilization Question - On Closed Account Now Looks Like Been Reopened

I've got (and have had additional) closed accounts, but the CCCs left the CL higher than the open balance. They were just not open to new charges.

I didn't think the CCC were allowed to lower the CL below the outstanding balance on a closed account, but I don't know for certain on that.

My understanding is that closed accounts are handled a little differently in the FICO scoring. Having said that, my Citi closed account reported as a MyFICO alert on EQ on Feb 16 that the balance decreased from $2,032 to $1,981 and EQ went up 4 points, so there's some slight influence on the score apparently. The last score change on EQ was 12 days before and there were a lot of other score decreases, so saying the closed account was anything other than a late trigger, it is difficult. to get past that

 

I would just keep paying them down, although the interest rate is probably not fun, so faster payments will save you interest in the long run, disreagarding any FICO issues (that's cash, the interest expense is). If you've been paying them down for the better part of 3 years, there's probably a lot of interest expense you've already paid on these, no?

High Bal Jan 2009 $116k on $146k limits 80% Util.
Oct 2014 $46k on $127k 36% util EQ 722 TU 727 EX 727
April 2018 $18k on $344k 5% util EQ 806 TU 810 EX 812
Jan 2019 $7.6k on $360k EQ 832 TU 839 EX 831
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Frequent Contributor

Re: Utilization Question - On Closed Account Now Looks Like Been Reopened


@NRB525 wrote:

I've got (and have had additional) closed accounts, but the CCCs left the CL higher than the open balance. They were just not open to new charges.

I didn't think the CCC were allowed to lower the CL below the outstanding balance on a closed account, but I don't know for certain on that.

My understanding is that closed accounts are handled a little differently in the FICO scoring. Having said that, my Citi closed account reported as a MyFICO alert on EQ on Feb 16 that the balance decreased from $2,032 to $1,981 and EQ went up 4 points, so there's some slight influence on the score apparently. The last score change on EQ was 12 days before and there were a lot of other score decreases, so saying the closed account was anything other than a late trigger, it is difficult. to get past that

 

I would just keep paying them down, although the interest rate is probably not fun, so faster payments will save you interest in the long run, disreagarding any FICO issues (that's cash, the interest expense is). If you've been paying them down for the better part of 3 years, there's probably a lot of interest expense you've already paid on these, no?


Thanks for your input, i was enrolled in a hardship program and my interest rate was knocked down to 10% from 24%. i am hoping to have these paid off this year. I was just concered that now it looks like I am 100+% uti on these accounts. Thanks again!!!


Starting Score: EQ 615 (MyFICO) TU 588 (Walmart) EX 576 (EX Website) Started this journey 06/26/2014
Current Score: EQ 710 (MyFICO) TU 673 (Walmart) TU 726 (MyFICO) EX 706 (MyFICO) As of Sep 2015
Goal Score: 750 or higher across the board

Take the myFICO Fitness Challenge
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