But... but... the interest rate is 1.99%. I can't pay it off 
The scores posted today are with all cards under 50%, so there's that. The ding for SPG was in September, that cleared up with the late October statement, now under 50%. Points drop was EX -12 to 808, EQ -10 to 809, TU -9 to 815.
As an alternative, what I have done is initate a balance transfer to my SDFCU Secured Card of $450. The limit on that card is $500 so will put me over 90% on that card with the statement of October 20. The intent here is to see what my score is with a maxed out card.
My intent with commenting on closed card utilization, is that it is important for folks involved in AA, Balance Chasing, and closing of accounts, to get a clear view of what really will go on with their score. I have gone through a lot of closed accounts with balances. In my opinion, there are a lot of misunderstanding out there, repeated by folks without direct understanding, and that misunderstanding leads to panic by people that get hit with AA. They think they have to rush to pay everything off now or their score will "tank", when that often is not the most relevant consideration. Cash flow is important to consider. Terms of the current card agreement matters. Not just FICO score, which in the situation of AA, score becomes less relevant because many doors get closed for new applications anyway. #endrant.
I'll update after my SDFCU guinea pig is gored.
The best test, of course, would be to hit the secured card with 90%, report that, close the card, keep it at 85% or so, let it report again as closed the next month and see what happens. (I mean besides having Barclays close all their accounts... which I have none.)
Hilton $2,232 of $5,000 CL last statement in October, may go over 50% on Nov stmt.
SPG $2,979 of $15,000 CL October statement. It was over $5k on $10k limit in Sept.
Those are the only two near 50%.
SPG $2,979 of $15,000 CL October statement. It was over $5k on $10k limit in Sept.
Those are the only two near 50%.
The Hilton card reported this week, specific card utilization went from 44% to 60%, now $3,013 of $5,000 limit reported.
EX goes 816 --> 810 6 point drop. So far that is the only one reported.
I have the BT to the SDFCU that completed, so that will report 90% soon.
I am not paying off the Closed card yet, only working with open balances going over 50% to see score changes. After I bring those below 50%, open cards, then I may consider paying off the Closed card.
SDFCU Secured card, with a $500 limit posted the statement balance of $454 today. Reports as 90% utilization on the MF Alert.
EX takes the score down by 21 points from 810 to 789.
If my Closed CITI card with $519 on a $5,690 displayed "credit limit" were already showing as 100% maxed out, I doubt I would have seen such a decline for a second maxed out card.
EQ dropped by 18 points
TU dropped by 14 points, both from the same SDFCU update to over 90%.
NRB: If you don't have other major balances (call it >70% revolving) look in the reason codes for the other scores.
EX FICO 2 for example you may well have complaints about high credit usage, and high account balances.
Strangely that high credit usage is higher on the reason code list than my 7 month old 30D late (missed payment and recent missed payment being #2 and #3 for me). The HELOC is at 73.9% revolving currently, and clearly the source of the reason codes as the rest of my utilization is minimal compared to somewhere around 200k revolving.
Presumably if the closed account is 100% utilized, that will show up somewhere in the reason codes.
FWIW there was some old data that I remember that suggested that it was counted like that, but I'm somewhat suspect of a lot of data that's reported on this forum now if it's not backed by explicit reason codes at this point.
I may have better data on reason codes for you too once the HELOC reports again at 98.9% utilization in another week or so which it'll do before I start aggressively paying it down.
So, related to the changes over the last month, I have looked at all the Alerts and score changes I got on MyFICO. In this, when a score changes on TU, they list up the then-current 4 Reason Codes on that day.
Some perspective around this:
Last HP is August 2018 for a co-signed loan. I am not sure if this affects my New Accounts list, it is not a credit card.
Last HP for Credit Cards are Jan 15 2018 for a CLI on PenFed (EQ), and Jan 9 2018 for CSP (EQ & EX).
HP for Altitude Reserve was TU in September 2017, so off the scoring.
No HP for Delta Reserve app in January 2018
That means new accounts=two at about January 2018, CSP and Delta Reserve depending on where they time them, one in September 2017.
During this time there is no significant change in the closed Citi account, that still reports $519 of a $5,690 limit at November 18, 2018, 9.12% utilization, and payments every month, so no "inactive" notices on that one. The Closed account will be addressed later after these open accounts noted below come back in line with more reasonable utilization.
Overall CC utilization reported on all bureaus, from my November MyFICO 3B report, is 4%.
In early November, all three bureaus are 816 - 821.
TU Reason Codes at this time are:
1 - Time Since most recent account opening is too short
2 - Too many accounts with balances
3 - Amount owed on revolving accounts is too high
4 - Proportion of balances to Credit Limits on bank/national revolving or other revolving accounts are too high
Starting November 20 Hilton card goes over 50%. EX -6 point decline. TU does a -1 decline. EQ did not get an alert for it, but reflects it when a Discover report comes in November 23, net of -8.
TU Reason code sequence remains exactly the same.
On Nov 23, SDFCU begins to report 90% utilization. -21 point decline on EX. TU picks up SDFCU and declines -14. EQ picks up SDFCU and declines -18.
TU Reason Code sequence changes to this:
1 - Proportion of balances to Credit Limits on bank/national revolving or other revolving accounts are too high
2 - Time Since most recent account opening is too short
3 - Too many accounts with balances
4 - Amount owed on revolving accounts is too high
On November 27, SPG Lux begins to report, balance change from $2,979 to $1,349 on $15k limit, 19% change to 8.99% displayed as 8% on the Alert. EX increases 5 points, TU increases 4 points, and EQ gets the news about SPG Lux on the same day as the news about SDFCU, so the -18 noted above is net SDFCU going to 90% and SPG Lux decrease in utilization.
TU Reason code list is the same as after SDFCU reported, with "Proportion of Balances" as number 1. There have been no further TU changes, so that is the last list of Reason Codes I have.
December 1 passes, and something aged off, either a HP or new account effect, I'm not sure which.
December 2, Chase Freedom reports an increase in utilization from 5% to 33% and EX score increases +3 points. This is most likely a mix of something aging and the increase in single card utilization.
In here, I see that taking an open card to 90% triggers "Proportion of Balances" to go to number 1.
If a closed card were counted as 100% utilization, it would seem that reason code would already be my number 1.
This also shows how cards making significant moves below 30%, the SPG going from 19% to 8%, triggers a score change.
Also in here, are cards that are "not the highest utilization" triggering score changes.
These are examples that make me skeptical of the statement "Individual Card Utilization changes, when it is not your highest utilization card, are non-events".
I also do not think the closed account is significantly impacting my score, certainly doesn't look like 100% Utilization to me, but that will be reviewed later.
More to come as this develops.
While I wait for my SDFCU to report a significant reduction in utilization in the next few days, the Hilton card has gone below 50%. Got a score boost as bureaus see that, and that is without the SDFCU coming down below 90%. So the idea that highest individual card boxes out any score changes as lower Utilization cards change, is bunk.
And just to refresh our memory, the purpose of this exercise is leading up to checking what happens when the Closed card is paid to zero. That has not happened yet, and Open cards with interesting Utilization levels are moving score.
There is some indication on MyFICO TU that SDFCU may have reported, since the Reasons codes have now dropped any mention of Proportion of Balances Too High and Amounts Owed. Only Number of Cards is related to card count/balances. The rest of the reason codes deal with time since newest card. Again, no influence from the closed card "reporting at 100%" because that is not how Closed cards report.
So anyway, CK / Vantage 3.0 is also only interested in the SDFCU Open card being over 90%. No interest at all in the Closed card at relatively low utilization.
