Rebuilding Your Credit

[eduardofabian1]

I have two revolving accounts. One is a credit card and the other is a line of credit. Both accounts have been closed, and I made special agreements to pay them in a fixed amount monthly. Both accounts get reported on the credit bureaus as revolving. Is there any chance to ask the creditor to report those as installments since they are being paid in fixed payments each month and the credit lines have been closed? If so, will I see improvements in my credit score and report? Thanks.

[llecs]

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eduardofabian1 wrote:

I have two revolving accounts. One is a credit card and the other is a line of credit. Both accounts have been closed, and I made special agreements to pay them in a fixed amount monthly. Both accounts get reported on the credit bureaus as revolving. Is there any chance to ask the creditor to report those as installments since they are being paid in fixed payments each month and the credit lines have been closed? If so, will I see improvements in my credit score and report? Thanks.

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You can try but it's not likely they'll entertain that. If these are your only two TLs, then you'd likely see a significant FICO score drop anyway due to the loss in util and loss of mix.

[eduardofabian1]

The accounts are colsed and they do not have available credit. They are paid exactly as regular loans, fixed payment every month. I do think it will help since I have another revolving accounts in good standing.

[cascade159]

If the account is CLOSED I'm not sure how they would show any future reporting.

[llecs]

Closed revolving accounts, even if they carry a balance, still factor into your mix of credit. So, your revolving CC, despite being closed, still factors as a revolving. Once the balance reaches $0, then it is removed from your mix. So, if this is your only CC, and if switched to an installment (which I don't think is possible) you would lose quite a few points. Why? Your util takes a hit from being scored as x% to no percentage and since revolving are favored over installment TLs per FICO, you'd take a hit due to the missing mix.

[eduardofabian1]

I just called and the answer was no. They say that the nature of the credit line is revolving so it will keep informing that way. How can the big banks that recently got the little push from the government so they can help the consumer be so uptight?

[O6]

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eduardofabian1 wrote:

I have two revolving accounts. One is a credit card and the other is a line of credit. Both accounts have been closed, and I made special agreements to pay them in a fixed amount monthly. Both accounts get reported on the credit bureaus as revolving. Is there any chance to ask the creditor to report those as installments since they are being paid in fixed payments each month and the credit lines have been closed? If so, will I see improvements in my credit score and report? Thanks.

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I probably wouldn't push my luck.  They could come back and report that the accounts are being paid under a payment plan and that is a derogatory on your credit report.