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Posted: Fri May 30, 2008 1:11 pm Subject: old credit card question

My husband had an old credit card on his credit. It was through Sears and was paid off with no late days for the period he had it. It was back in 2000. It is showing positive on our credit, but wouldn't that still be detrimental to his credit if that card had a limit of 2000 and shows open? We called them and they said that he would have to reapply and that the account isn't open even though the credit report says otherwise. Any suggestions?

Guest · Posted: Fri May 30, 2008 1:27 pm Subject:

Try contacting the credit bureaus

Posted: Fri May 30, 2008 5:51 pm Subject:

This should be helping your score, because of positive payment history.

I deleted the thread you requested.

Posted: Sat May 31, 2008 8:54 am Subject:

I know that because it is positive it is helping the credit, but what about the status of open? How does that affect his credit when it shows open with a line of credit of 2000 dollars? Doesn't that affect his debit to income ratio? Or since it has a zero balance, does it show that he has the line of credit but hasn't used it? I am so confused...I'd just like the status changed to closed. Just to be safe.

Posted: Sat May 31, 2008 8:59 am Subject:

It is helping credit with both age of account & utilization of credit lines.Closing this account has a chance of dropping your credit.

Posted: Thu Jun 05, 2008 8:06 am Subject:

OK Thanks. We are just trying to clear up our credit so we can eventually get to a point where we can buy a house. We found a nice house with 2 and a half acres for $59500. That is an outstanding price for the location. It is a foreclosure so it is selling for what is left owed on it. We figure if we buy the house and land (it's a mobile but only 2 years old), we can have it paid off in 7 to 9 years. And then we won't have a house note. Doesn't that just sound heavenly? No house note??? no rent????

Guest · Posted: Thu Jun 05, 2008 10:20 am Subject:

Or better yet if you can, buy the house, divide the land and sell the house or land for a profit and pay it off sooner. OR buy it and turn around and sell it for a profit then buy something else. Very Happy

Posted: Wed Jun 18, 2008 8:00 am Subject: d2i

Your debt-to-income ratio is not part of your credit score calculation. However, your balance-to-limit (your debt balance compared to your account's credit limit) is calculated as part of your credit score. Having a $0 balance on a $2000 credit limit should reflect well and the age of the account should also reflect well (your B2L ratio is low and the age of the account shows that you've maintained an account for several years, which is a good sign for lenders).

The question of the account being open or not being open is strange. It appears that Sears has not reported your account as being closed. That actually may be good for you (longer credit history, lower B2L ratio).

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