Credit Advice

Have a question? Have advice to share? The combined knowledge and experience of everyone in the Credit Karma community can help you. Enter your question or help others below to get started!

Question

Posted in Credit Scores
Profile Image

Question By
mslater7

0 Contributions
0 People Helped
Credit cards with no balance being closed by creditors killing my credit score
About a year ago my credit score was was in the mid 700's. Around that time I purchased a classic car, and the best rate was through my credit union on a fixed rate credit card. I ended up putting almost $30k on a credit card with only a $30k limit. A few months later i get a letter from a credit card company telling me that they are closing my account, and the reason they list is credit utilization on a card is too high. Month after month, I continue to get letters informing me that other creditors are doing the same thing. At the time of purchasing the vehicle, I had a significant amount of available revolving credit, today my credit report is showing 77% utilization which is true, however is only true because of these other creditors closing or significantly reducing my available credit. As a result my available credit utilization went from under 20% to almost 80%, and the average age of my open lines of credit is now only 3 years. The average age of my credit is a result of some of the credit cards I've had open since I was 18 years old being closed. Here is my problem I have a perfect payment history, only 1 inquiry in the last 24 months, everything else looks great on my credit report except for the credit utilization, but my score went from mid 700's to somewhere around 600. My wife and I want to purchase a new house, but with a score that low, we will never be able to get a loan. Looking for advice, I don't know what to do.

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW
All Responses

Result 1-1 of 1Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next
Top Contributor
7816 Contributions
1444 People Helped

Start by checking your FICO scores, you will need to purchase them, but it is worth it to know where you actually stand. FICO does factor in closed accounts to the "average age of accounts".

Result 1-1 of 1Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW

Reply to this Question

Write your response:
Enter Your Comments

The Credit Advice pages of the Site may contain messages submitted by users over whom Credit Karma has no control. Credit Karma cannot guarantee the accuracy, integrity or quality of any such messages. Some users may post messages that are misleading, untrue or offensive. You must bear all risk associated with your use of the Credit Advice pages and should not rely on messages in making (or refraining from making) any specific financial or other decisions.