I have a DMB card that I had closed at my request. I still owe $350.00 on it with no late payments since I got it. Will this hurt my FICO score since the account is closed with a balance? It shows as a good tradeline on my account. Experts? Thanks! MikeB
Only F.I.C.O. know for sure...but I don't think it hurts you to have a closed account with a balance...when the credit card companies GET GREEDY, (JACK UP INTEREST RATE) they will close your account, and you can pay off at the OLD TERMS...
It hurts the total balance to limit ratio, since the limit of this card is now zero but the balance is not. It might not hurt the FICO score in general in YOUR case, though, if you had too many open accounts before you closed it, and if you improved the average age of your accounts by closing it (in other words, if it was a relatively new account). I cannot think of any other ways your FICO is affected.
YOUR LIMIT IS NOT $0 IT IS STILL WHAT IT WAS IF IT WAS $5,000 AND YOU OWE $800 ON AN OPEN ACCOUNT... YOU WOULD STILL HAVE A CREDIT LINE OF $5,000 AND OWE $800...
Yes but even though your limit is still shown, the account is closed so you don't have access to your limit and I am sure FICO does not include that when determining ratios. I have several accounts closed which still how what my limits were, but I know these can't possibly be used in ratios, his is the same case, but believe me his balance will still be included in his debts. Mom
