Hi all- New to the fight. Had a quick question. I had an account that i opened expressly for one purchase. I made the purchase and then just paid on the account. The creditor (GE Money Bank) closed the account and it shows "Closed by Grantor" on my CR. My EXP FICO is 620 today. My questions are as follows: 1. If the account is closed like this, does it still affect my debt to avail credit ratio? 2. Should i call them back up and have them reopen the account? my balance is 4600(out of 6500), with my "Overall Utilization" at about 78%. Is there a benefit? This may be the first in a string of questions... Thanks all and I hope to become a testimonial soon Dan
1) If it's closed, it's not showing as available credit. However, you should be aware that when you go for something important like a mortgage or car loan, an actual person will review your credit report. When they see "closed by grantor", they won't be happy. That usually means the account was charged off. 2) I'm not clear on this. Is there still a balance on the account? Or is 4600 your "average" or "high" balance?
Hi sparq - The account is in good standing. When all of the bank stuff started is when they closed it. I had only 3 late payments nearly 1.5 years ago. The grantor closed the account, but it reports as "Paid as agreed"... They closed the account without my consent, as I heard they did with many peoples accounts. Im guessing that they used the "late payments" as an excuse, but im not really sure. The high balance/limit was 6500, and I have paid it down to 4600, so there is still a balance. Thanks for your input. Dan
Closed credit card accounts with balances and credit limits that are still reported to the credit bureaus will be considered by FICO in the calculation of credit utilization ratios. So, yes, it sounds like this card would still be affecting your overall credit utilization and thus your FICO scores. Once a closed account has reached a zero balance or the creditor no longer reports your credit limit to the credit bureaus, you can then expect the card to completely drop out of your credit utilization ratio. I highly doubt they will reopen your account, so your best option is probably to just pay this down as fast as possible.
The solution to the problem is discussed in detail and sure you have idea how to open or close the account.Being a business and banking student i have learnt a lesson today.there are many complexities as the banking c=become more and more advanced today.
Sorry Marquise, but your comment doesn't make any sense to me. I'm curious- what business school do you attend?
