Open Derogatory vs. Closed Derogatory?

[Anonymous]

I use Credit Karma just for acct viewing only I don't follow the Vantage scores too closely. So today my CK updates and a repo that was listed as "open-derogatory" (as well as charged off) has been update on my transunion report and now shows "closed-derogatory". What are the differences between open and closed? My CK equifax went up 25pts. while the transunion went down 2 points with the closed-derogatory being the only difference on the 2 reports. 

[Anonymous]

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@Anonymous wrote:

I use Credit Karma just for acct viewing only I don't follow the Vantage scores too closely. So today my CK updates and a repo that was listed as "open-derogatory" (as well as charged off) has been update on my transunion report and now shows "closed-derogatory". What are the differences between open and closed? My CK equifax went up 25pts. while the transunion went down 2 points with the closed-derogatory being the only difference on the 2 reports. 

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CK (Vantage) does not factor paid collection accounts. FICO does.

[Anonymous]

I see. even though I did not pay yet and they have closed the account I was planning on trying to settle this with Wells Fargo Dealer services. Will they still be able to accept a payment under the closed status?

[RobertEG]

Any extension of credit has two continuing factors that can be viewed as "open" or "closed."

One is whether the consumer continues to have repayment obligations, and two is whether the consumer has the discretion to obtain more credit.

Item 2 applies only to revolving credit, not installment.  The consumer has the authority, until revoked, to use more, discretionary credit, up to the approved credit limit, on a revolving line of credit.  Once a consumer becomes seriously delinquent, the creditor will normally terminate that authority, thus controlling further potential losses.

That is the significant "Closed" that is the distinction. 

There is no need for a creditor to "close" an installment loan, as the consumer cannot obtain additional, discretionary $, and the credtior does not close an account as to its repayment obligations.  Thus, the distinction between Open and Closed really only applies to revolving accounts, and is termination of the ability of the consumer to further increase an already delinquent debt.