09-23-2010 10:05 AM
I have a Cap 1 Auto account that I had for 6 months and it is closed and showing no lates, however the status is showing as 30 days past due. Can a closed account have a status of 30 days past due? this account shows up as a red flag so I'm assuming it is hurting me.
09-23-2010 09:25 PM - edited 09-23-2010 09:36 PM
Your credit file stores prior payment history and current account status separately.
When the account was closed, was it delinquent at the time? If so, has it been paid in full?
Current account status is a monthly reporting that reflects only current status, and not any prior status.
If the account is closed and paid, the prior 30-day late should not be reflected in current status.
However, if the account was closed and the debt still unpaid, the last reporting of status as 30-days late would properly continue. That status would be updated once you pay the account in full.
However, where it would still be reflected is in your prrior payment history profile. If you had a 30-day delinquency prior to account closing, this will be retained in your payment history profile reporting, even if current status is updated to closed and paid. The OC is not prevented from updating your credit file to show the prior 30-day late at any time, even after account closure. The issue is the legitimacy of the derog, and not when it was reported to the CRA.