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Question about account status..

New Contributor

Question about account status..

Hello,

 

I have an installment account (car loan) paid off on July 2016. I just noticed on my creditkarma the account status says "closed" for TU and on EQ it doesn't even show up anymore, maybe the "closed" status triggered a removal? Should it say something like "paid off" instead? I'm guessing I should go though the company and have them report it right but they have been a pain, can I take care of this directly with the CRAs and my PIF letter?

 

Thanks.

FICO8 EQ 744 | EX 697 | TU 707
Discover it - $11,900
Amex 3x CLI (in progress)
8 REPLIES
Community Leader
Epic Contributor

Re: Question about account status..

There are numerous different status codes that apply to an account, such as Current Status, status as open or closed, or Payment Rating status.

 

The Current Status references whether or not the account is delinquent as of the date of reporting.  The last date of reporting overwrites any prior Current Status, and will report either the current level of delinquency, or paid if closed, or pays as agreed if still open.

 

The status of the account as open or closed has nothing to do with its current delinquency status.  It only references whether the account remains open to consumer use.

 

A paid installment loan will thus report BOTH as closed and as paid.

 

As for removal from one CRA, the most likely reason is that the creditor chose to simplify their reporting by removal of the account with one or more CRAs.

They thus only thereafter need be concerned with updating their reporting with one CRA, and they avoid any possiblity of dealing with any disputes that the consumer might file with the other CRAs. 

 

Closed status only triggers consideration for deletion by the CRA at approximately ten years after date of closure.

The CRA would not delete at less than a year from closure, as any reported derogs would still be well within their exclusion dates, and thus still of interest to others.

Deletion is only done as standard CRA policy for older accounts that have lost most or all of their reportable derogs.

New Contributor

Re: Question about account status..

 


RobertEG wrote:

There are numerous different status codes that apply to an account, such as Current Status, status as open or closed, or Payment Rating status.

 

The Current Status references whether or not the account is delinquent as of the date of reporting.  The last date of reporting overwrites any prior Current Status, and will report either the current level of delinquency, or paid if closed, or pays as agreed if still open.

 

The status of the account as open or closed has nothing to do with its current delinquency status.  It only references whether the account remains open to consumer use.

 

A paid installment loan will thus report BOTH as closed and as paid.

 

As for removal from one CRA, the most likely reason is that the creditor chose to simplify their reporting by removal of the account with one or more CRAs.

They thus only thereafter need be concerned with updating their reporting with one CRA, and they avoid any possiblity of dealing with any disputes that the consumer might file with the other CRAs. 

 

Closed status only triggers consideration for deletion by the CRA at approximately ten years after date of closure.

The CRA would not delete at less than a year from closure, as any reported derogs would still be well within their exclusion dates, and thus still of interest to others.

Deletion is only done as standard CRA policy for older accounts that have lost most or all of their reportable derogs.


 

Thanks for the reply. Here is a snapshot of the reporting on CK, by what you are saying the mistake is in the Payment Status showing "Current" instead of "Paid Off".

 

This also means that the creditor has chosen to only report to TU, so the next question would be, can I and should I pursue adding this account with the other 2 CRAs, and in this specific case, does the benefit of having a paid off installment account outweigh the 2 lates that come with it?

 

 photo myfico_zpstmhzzhdn.jpg

FICO8 EQ 744 | EX 697 | TU 707
Discover it - $11,900
Amex 3x CLI (in progress)
Valued Contributor

Re: Question about account status..


sgonz261 wrote:

 


RobertEG wrote:

There are numerous different status codes that apply to an account, such as Current Status, status as open or closed, or Payment Rating status.

 

The Current Status references whether or not the account is delinquent as of the date of reporting.  The last date of reporting overwrites any prior Current Status, and will report either the current level of delinquency, or paid if closed, or pays as agreed if still open.

 

The status of the account as open or closed has nothing to do with its current delinquency status.  It only references whether the account remains open to consumer use.

 

A paid installment loan will thus report BOTH as closed and as paid.

 

As for removal from one CRA, the most likely reason is that the creditor chose to simplify their reporting by removal of the account with one or more CRAs.

They thus only thereafter need be concerned with updating their reporting with one CRA, and they avoid any possiblity of dealing with any disputes that the consumer might file with the other CRAs. 

 

Closed status only triggers consideration for deletion by the CRA at approximately ten years after date of closure.

The CRA would not delete at less than a year from closure, as any reported derogs would still be well within their exclusion dates, and thus still of interest to others.

Deletion is only done as standard CRA policy for older accounts that have lost most or all of their reportable derogs.


 

Thanks for the reply. Here is a snapshot of the reporting on CK, by what you are saying the mistake is in the Payment Status showing "Current" instead of "Paid Off".

 

This also means that the creditor has chosen to only report to TU, so the next question would be, can I and should I pursue adding this account with the other 2 CRAs, and in this specific case, does the benefit of having a paid off installment account outweigh the 2 lates that come with it?

 

 photo myfico_zpstmhzzhdn.jpg


My closed and paid loans all say the exact same thing. Payment status - Current; Account status - Closed.

 

I highly doubt that is a mistake. I checked CK and here and on direct pulls, they all say the same thing. 

 

What was it you were disputing?


EX08 659 EQ08 660 TU08 695 Starting: mid 300'sGoal: 700
Frequent Contributor

Re: Question about account status..

That is also how my paid off loan reports.  It is closed with the latest status current and a balance of $0.  Some creditors only report to time or two reporting agencies.  There was a post on the board recently where someone contacted a creditor about posting to the others and they said they didn't have a relationship with the others.  I don't know if yours is that way, but apparently some are.

Regular Contributor

Re: Question about account status..

What website is that screen shot from?

 

I would check with TransUnion direct to see how its listed on their report with TransUnion.

 

Different credit bureaus have different ways of how everything is coded into their system.  On their reports they can interpet what the codes mean when you view them at their website.

 

For anexample, Experian pcisk up Experian and Transunion reports, experian may use 01 for Closed where TransUnion may use 01 for Paid/Closed.  When Experian reads that 01 code, its going to display what their interpetation of code 01 is, where in my example it would show Closed.

 

The same could go for Payment Status.  Experian could use 01 for Current but Transunion could use 01 for Paid As Agreed.

 

When I viewed my Experian 3 bureau report it listed one of my paid charged off accounts as "Bad debt & placed for collection & skip" for Equifax. 

 

 

 

 

Starting Score: May 23, 2016 EQ 537 TU 518 EX 548
Recent Score: November1 2017 EQ 710 TU 677 EX 706
Goal Score: 720
Current Vantage 3.0: 706
Mortgage Scores August 18 2017: EQ5 684 TU4 692 EX2 690
New Contributor

Re: Question about account status..

Oh good to know this is standard, will I be able to if I try to update the other 2 reports by pointing them to TU, I think I have done this before with deleted accounts, and is it worth it with the 2 lates? That's what I was disputing by the way.

FICO8 EQ 744 | EX 697 | TU 707
Discover it - $11,900
Amex 3x CLI (in progress)
Valued Contributor

Re: Question about account status..


sgonz261 wrote:

Oh good to know this is standard, will I be able to if I try to update the other 2 reports by pointing them to TU, I think I have done this before with deleted accounts, and is it worth it with the 2 lates? That's what I was disputing by the way.


I think you're throwing darts in the dark.

 

Maybe a goodwill strategy could be effective?


EX08 659 EQ08 660 TU08 695 Starting: mid 300'sGoal: 700
Highlighted
Community Leader
Epic Contributor

Re: Question about account status..

The report uses the term "Payment Status" to reflect the Current Status, which is correct.

 

The CRA credit reporting code of Payment Rating status reflects the prior level of delinquency.

 

It appears correct.

A dispute would only result in clarification of the use in the commercial credit report of the term "Payment Status" as synonymous with Current Status, and not Payment Rating.

I would leave it be......