Credit Card Account History

[okay1515]

I recently enrolled myself in a debt management plan and as a result some accounts have been closed. This has not affected my score but my question is this; some of the closed accounts im still paying off and are not even 24 months old. Right now i have the opportunity to paid some of the closed accounts off but I wanted to keep carrying a balanced so that the lenght of the account increases. On the other hand i think the length of the account will not increase because the account has already been closed so what should I do?

[myjourney]

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@okay1515 wrote:

I recently enrolled myself in a debt management plan and as a result some accounts have been closed. This has not affected my score but my question is this; some of the closed accounts im still paying off and are not even 24 months old. Right now i have the opportunity to paid some of the closed accounts off but I wanted to keep carrying a balanced so that the lenght of the account increases. On the other hand i think the length of the account will not increase because the account has already been closed so what should I do?

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Welcome to the forum okay1515

You should pay what you can off....ASAP

One of the downsides to those companies is they have the lender close the account 

What this leads to in your case is a closed account with a balance showing......A no no

Fico scoring will see this as a negative and this will definitely affect your scores in a negative way (very soon)

The accounts although closed will stay on your CR's for up to 10 years but will not age going forward weather carrying a balance or not

[Anonymous]

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@myjourney wrote:

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@okay1515 wrote:

I recently enrolled myself in a debt management plan and as a result some accounts have been closed. This has not affected my score but my question is this; some of the closed accounts im still paying off and are not even 24 months old. Right now i have the opportunity to paid some of the closed accounts off but I wanted to keep carrying a balanced so that the lenght of the account increases. On the other hand i think the length of the account will not increase because the account has already been closed so what should I do?

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Welcome to the forum okay1515

You should pay what you can off....ASAP

One of the downsides to those companies is they have the lender close the account 

What this leads to in your case is a closed account with a balance showing......A no no

Fico scoring will see this as a negative and this will definitely affect your scores in a negative way (very soon)

The accounts although closed will stay on your CR's for up to 10 years but will not age going forward weather carrying a balance or not

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This is an excellent point. That said not 100% sure if you continue to pay by each month's post date that it will be coded negatively as far as your status of never missing a payment (assuming you haven't already). Definitely draw the balance down on the closed account as soon as you can.

[myjourney]

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@Anonymous wrote:

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@myjourney wrote:

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@okay1515 wrote:

I recently enrolled myself in a debt management plan and as a result some accounts have been closed. This has not affected my score but my question is this; some of the closed accounts im still paying off and are not even 24 months old. Right now i have the opportunity to paid some of the closed accounts off but I wanted to keep carrying a balanced so that the lenght of the account increases. On the other hand i think the length of the account will not increase because the account has already been closed so what should I do?

---

Welcome to the forum okay1515

You should pay what you can off....ASAP

One of the downsides to those companies is they have the lender close the account 

What this leads to in your case is a closed account with a balance showing......A no no

Fico scoring will see this as a negative and this will definitely affect your scores in a negative way (very soon)

The accounts although closed will stay on your CR's for up to 10 years but will not age going forward weather carrying a balance or not

---

This is an excellent point. That said not 100% sure if you continue to pay by each month's post date that it will be coded negatively as far as your status of never missing a payment (assuming you haven't already). Definitely draw the balance down on the closed account as soon as you can.

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Hey Jack 

It's not how the company/lender reports that will have a negative effect it's in Fico's algorithm that will pickup a closed account with a balance showing

Even tho in most cases when you enlist the help of a debt management company the account already has late payments and high debt

Not in all cases tho....

[okay1515]

Thank you for your responses and welcoming me to the community. A little background about myself: I am a soon to be college graduate and I have signed up for myFiCO ultimate. In August of 2015 I join a debt managment plan because I realized some of my monthly payments were being sabotaged by interest charges. I am 8k in debt but I have never missed a payment. And @myjourney you are correct I think my situation is unusual, even my debt counser told my that.. His words were "you are an extremly rare case according to the report you have never miss a payment which is very rare for someone like you to ask for counseling." And he is correct I have never missed a payment but I think i have more debt than the usual college graduate (not including student loans).  Now my debt management plan (DMP) closed 5 of my 7 revolving accounts. It is interesting to note that Experian reports these closed accounts as a negative sign BUT myfico report shows they are open and they say "Paying account as agree" but also says as a side note

"Payments managed by financial counseling program"

Although Experian finds the closed accounts as a negative sign and myFICO does not; both experian and myFICO report to me the same credit score. Since I join DMP the accounts have been closed but they show green months for payments and myFICO has not listed a single account as being closed, all it did is add a note that I am paying throught some counseling. Since myFICO is the score and system I trust the most I decided to not pay off some of the accounts for the purpose of increasing my credit history. 

Here is my goal:

  According to myFICO Simulator if I continue making regular payments and bring my balances down significantly for the next 18 months my current score of 650 will go to a score of 835. This is for all scores not just one. So I plan to achieve that.

But since we are animals and want everything now I want to join the 800 club asap(just for the bragging rights). So I want to know if keeping some balances for the purpose of increasing my credit history a good thing or a bad. Should I just paid them off  now? What do you guys(& ladies) think?