Would an extra payment "help"? What is the next % range

[Anonymous]

Afternoon,

I have a closed Barclays credit card that is posting tomorrow and while I can't pay it off completely, I could potentially make an additional payment if it helps me score more points on my Fico (most important mortgage scores).  All of my card details are below. I think Fico Mortgage factors in closed accounts in the util. Any and all advice appreciated!

Open Cards:

• Bank Amex- $600/$25,000
• Bank Visa- $0/$20,000
• Ashley Furniture Store Card (Synchrony)- $0/$1500
• Capital One- $0/$500
• Capital One- $0/$3500
• Discover- $0/$2000

Closed Card:

• Barclays: $2,799/$4,100

[Anonymous]

Are you planning on a mortgage right away?

 I'm not an expert but methinks mortgage lenders don't like unpaid closed accounts

[Anonymous]

Was thinking around 7/1 applying. 

to be clear the closed account is because I closed it. Zero missed payments on the card. I just really do not like Barclays. No negative marks related to it

[Trudy]

Doesn't appear there's a % threshold to cross as you're already under 9% AGG UTL and practicing AZEO.  Not sure there's much you can do with scores without paying off the closed account.

Note that your closed account has no CL since it's closed. $4100 is not a part of your available credit.  So you're essentially at 100% UTL on that card until paid to $0.  

[SouthJamaica]

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@Anonymous wrote:

Afternoon,

I have a closed Barclays credit card that is posting tomorrow and while I can't pay it off completely, I could potentially make an additional payment if it helps me score more points on my Fico (most important mortgage scores).  All of my card details are below. I think Fico Mortgage factors in closed accounts in the util. Any and all advice appreciated!

Open Cards:

• Bank Amex- $600/$25,000
• Bank Visa- $0/$20,000
• Ashley Furniture Store Card (Synchrony)- $0/$1500
• Capital One- $0/$500
• Capital One- $0/$3500
• Discover- $0/$2000

Closed Card:

• Barclays: $2,799/$4,100

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It's important to your scores to get the Barclays balance down to $1148 (28%) or less.

[Anonymous]

So this is a little different than Trudy reply. Does paying the closed account to 28% help or is it 100% util regardless of balance 

[Anonymous]

I was under the impression that any balance on a closed card is considered 100% UT.  While I can certainly understand disinterest in a Lender for whatever reasons, leading to simply closing the account. It's not suggested to do so before any balances are paid to zero.

Obviously if it was AA on their part you haev no control, but to actively close it yourself while having a balance doesn't make sense to me. 

[Anonymous]

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@Anonymous wrote:

I was under the impression that any balance on a closed card is considered 100% UT.  While I can certainly understand disinterest in a Lender for whatever reasons, leading to simply closing the account. It's not suggested to do so before any balances are paid to zero.

Obviously if it was AA on their part you haev no control, but to actively close it yourself while having a balance doesn't make sense to me. 

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This isn't the case if they are reporting the limit still but from my understanding Barclays is one of the ones that actually changes the reported limit so that you end up maxed out. 

[Anonymous]

When I look at experian, it shows my credit limit as $4100 even though account is closed. 

it basically sounds like either 1) pay it off in full 2) pay down to 28% or $4100 3) just leave as is and continue to pay down because regardless card appears maxed out. 

hopefully a mortgage lender would see my other cards and not be so bothered by this stupid JetBlue Barclays card. 

[SouthJamaica]

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@Anonymous wrote:

So this is a little different than Trudy reply. Does paying the closed account to 28% help or is it 100% util regardless of balance 

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There are 2 kinds of revolving utilization: (a) aggregate and (b) individual card.

Even if your aggregate utilization is good (which for simplicity I will define as 8.9% or less), you will get penalized if you have even one card with bad individual card utilization (which for simplicity I will define as 30% or higher).

Yes Trudy was wrong on that point and on other points as well.

E.g., it is not necessarily true that for individual utilization purposes you are deemed to have 100% individual card utilization because the Barclays Bank account is closed. That has happened to some unfortunate folks, but more often than not the closed account credit limit stays the same as it was before the account was closed. Yes it's true that the limit no longer factors into your aggregate utilization number.  But as far as individual utilization, most lenders will report the limit as the same as it was prior to the closure.