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payments on closed accounts

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Anonymous
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payments on closed accounts

I have three closed accounts that I have been paying on for some time with the oc's trying to get them paid off. All are reported as closed by grantor but are showing like 3 to 4 years of on time payments after closure. I know that the bad marks drop off after 7 years of reporting. My question is does the good history stick around after the bads drop off for 7 years also or do these disappear 7 years from the date that they closed/restricted your credit account? I was wondering if paying on these dead accounts was actually doing me any good.
Message 1 of 6
5 REPLIES 5
Anonymous
Not applicable

Re: payments on closed accounts

I just, this month, paid off a chase card I closed in 2012. Last year when I apped for a Barclays card and was denied one of the reasons on the recon was that I am still paying on a closed account.

Anyways, paying on it after it is closed doesnt hurt, if you can PIF go for it otherwise keep paying until its done. After the lstes fall off the positive account info will stay for 10 years after it closed.

If you stop paying on it, that will hurt

Message 2 of 6
Anonymous
Not applicable

Re: payments on closed accounts

Oh yha, when I paid off that chase account I was wondering if I would get any sort of a score bump... I did not get any score change with myFico when it reported paid.

Message 3 of 6
StartingOver10
Moderator Emerita

Re: payments on closed accounts

It depends on your utilization. The balance on your closed accounts is counted against your utilization so when you pay off the closed accounts timly you will see a jump in score if your utilization is good. How much is your total utilization?

Message 4 of 6
Anonymous
Not applicable

Re: payments on closed accounts

About 45 percent now. Not good. Utilization will be paid to about half of what it is now in the next couple months. Nice to know at least I will get to milk that positive history for awhile though. I guess at least that's the one plus side to paying ungodly interest on a closed account.
Message 5 of 6
RobertEG
Legendary Contributor

Re: payments on closed accounts

The FCRA requires that the CRA (normally) exclude adverse items of information from credit reports they issue after certain periods of time.

For an OC account, once all derogatory information has become excluded, the account will remain.  Whether what remains is positive or negative is up to a party reviewing the account to determine.

 

For example, absence of monthly derogs and a CO does not mean the account is "positive."

If the account still shows a balance with no reporting of paid, that would clearly raise questions as to a possible unpaid, delinquent debt.

 

Getting the account updated to show paid is clearly an advantage.

Message 6 of 6
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