will this affect my scoring?

[mt2va]

I have 2 closed CC that are nearly maxed out.  They were closed by the credit issuer due to 2 30 day lates about 1 1/2 years ago.  Is this hurting my utilization portion of my FICO scores since they are closed?  I know utilization is 35% of my score, but wasn't clear if that only applied to open accounts or if these closed accounts are factored in as well?  I've been successful to get the issuer to lower my interest rate to 6% for one year and plan to aggressively pay down/off these accounts during that time.  But just wondered how much it was hurting my score.  I have 3 open CC reporting.  One at 0% utilization, one at about 20%, and one at about 50%.  (these will be paid for by early July) 

[ReaLiLJ]

Yes Closed accounts if considered negative accounts will affect your fico score up until 7 years from when your card's DOFD : (the last time you got behind and didn't try to catch up.) So say they closed you a year and 1 month ago (11/2011), and you brought it to good standing a year ago snd never touched it since (12/2011), 7 years from that occurence is when the negative account will fall off, and it will not be factored into your fico scoring. For now it will continue to be factored into your fico scoring until that closed account has fallen off, or until you pay it off in full and ask for a GW for the paid account and after awhile of being in that paid off status it will shortly have little to no affect at all.

[mt2va]

I think I understand what you're saying but let me clarify because based on your answer I think I may not have explained correctly. I have Visa & MC with NFCU.  They are not charged off accounts.  They simply chose to close them January 2012 because I had 2 30 day late payments end of 2011.  Weird thing is sometimes they still report open on CR.  For awhile they were over the limit but I have both of them below the credit limit now.  I was able to successfully request them to lower my interest rate to 6% for one year so that when I do make a payment at least I'm making a bigger dent in the balance.  So in the time since the late payments the end of 2011 I have always paid on time and at least the minimum if not a little bit more.  I was just wondering if the fact that they are close to the limit (closed but not charged off) is hurting my utilization portion of my score? 

[llecs]

Revolving utilization includes all open and reporting accounts like CCs, LOCs, and HELOCs (up to a certain limit). It also includes all closed CCs, LOCs, and HELOCs that have updated within the past year and show a CL and a balance other than $0. And revolving utilization also includes any CO'd CCs that have updated within the past year and show a balance. In other words, your closed CCs are factoring in. ETA...once the closed accounts are paid off, then they are forever removed from util. That's why you see posters complain every now and then that their FICO dropped after paying off a large chunk of closed CC debt.

[ReaLiLJ]

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Mt2va wrote: "I was just wondering if the fact that they are close to the limit (closed but not charged off) is hurting my utilization portion of my score"

In that case refer to llecs post, as I stand corrected, + I was confused and thought your account was charged off. (My apologies for not asking for clarification) -LJ

@llecs wrote:

"ETA...once the closed accounts are paid off, then they are forever removed from util. That's why you see posters complain every now and then that their FICO dropped after paying off a large chunk of closed CC debt. "

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Thanks for the justification  question: when the closed account (even when paid off) it still affects the fico score, even though it doesn't affect Revol util correct? 

[Anonymous]

That is correct.

[llecs]

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@ReaLiLJ wrote:

Thanks for the justification  question: when the closed account (even when paid off) it still affects the fico score, even though it doesn't affect Revol util correct? 

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Paid off closed accounts will still impact your FICO via impact to your length of history, impact to AAoA, contribution to your mix of credit, impacts payment history if there are any lates or neg. comments, plays a part in your scoring bucket, among others.

[ReaLiLJ]

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@llecs wrote:

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@ReaLiLJ wrote:

Thanks for the justification  question: when the closed account (even when paid off) it still affects the fico score, even though it doesn't affect Revol util correct? 

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Paid off closed accounts will still impact your FICO via impact to your length of history, impact to AAoA, contribution to your mix of credit, impacts payment history if there are any lates or neg. comments, plays a part in your scoring bucket, among others. +1

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Thanks for the new found knowledge! -LJ