understanding utilization

[Anonymous]

I am trying to figure out how utilization is calculated amongst closed and open/inactive credit accounts? I have 1 closed cc with a balance, a chargeoff with a balance, 1 open and inactive CC with no balance, a closed cc with no balance, and an open CC with a balance. ALL of the above accounts post a credit limit. I'm trying to figure out though if all of those credit limits are used in factoring my credit utilization or if some are excluded? I have heard that closed with a balance actually calculates with 100% on that account- but i wonder if that includes the scenario when the credit limit is posted? I have been debating whether or not i get any mileage out of paying off a closed account slowly -> due to its positive payment history.. i assume the tl isnt counted towards my account history since it is closed, but yet it does continue to grow as I pay on it monthly.. anyone have some light to shed on me?

[Anonymous]

Revolving UTL

A.
All revolving accounts open and closed that show a balance will mostly be negative.
You need to add up all these balances together.

B.
Total "open" credit lines. You do not count closed credit lines. Add up all your open revolving credit accounts to sum up total credit avl.

C.
Calculate.
A(total revolving debt open and closed) X [100] /by B(Total open credit lines)

Example.
7 credit cards.
1 closed with a balance of $500 and a credit line of $5,000.
3 closed with $0 bal and credit lines of $5,000 each.
3 open with $3,000 bal combined and a combined total of $10,000 credit line.

calculate.
Bal of $3,500 debt x 100 = 350,000.
Total open credit $10,000
Divide 350,000 by 10,000 = 35% UTL

[Anonymous]

You should "not" have any closed accounts showing balances. This is VERY bad for credit. Pay off fast! This history is not worth the possible 1/4 of a point you might get. Ask them to correct the charge off to PAID!

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Original message
I have been debating whether or not i get any mileage out of paying off a closed account slowly -> due to its positive payment history.. i assume the tl isnt counted towards my account history since it is closed,

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Message Edited by ilovepizza on 01-15-2008 10:57 AM

[Anonymous]

cool thanks. one addon question then: i do have an old account listed as "open" with a credit line reported- but the DOLA is like 2003 - as I never used the card. Does this affect my utilization as an open account or is it left out since i have not used it in so long?

[fused]

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sedric1 wrote:
cool thanks. one addon question then: i do have an old account listed as "open" with a credit line reported- but the DOLA is like 2003 - as I never used the card. Does this affect my utilization as an open account or is it left out since i have not used it in so long?

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Welcome! Please read the closing credit cards thread in my sig line.

[Anonymous]

Not sure. Thats long dormant if it stopped reporting. If it still reports monthly updates it is still counted I believe. You should use it every 6 months or so. Some creditors have closed accounts when they go dormant too long.

Message Edited by ilovepizza on 01-15-2008 09:42 PM

[Anonymous]

good thread fused -> just read through it all. Guess im stuck til i get rid of some of these closed accounts i own :/