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Does a closed account with negative payment history still affect your credit score?

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Jagajaga
New Contributor

Does a closed account with negative payment history still affect your credit score?

I have a few closed accounts with multiple late payments. Although these accounts are closed with zero balances, are there still holding my credit score back?

Filed BK7: 2/2014 (start score EQ 450) Discharge 5/2014
666 EQ FICO 12/2015
$18k NFCU cashRewards |NFCU LOC 15k | $1.5k Barclay Rewards| $4.5k Cap1 Quicksilver| $1.5k Cap1.
Message 1 of 7
6 REPLIES 6
Anonymous
Not applicable

Re: Does a closed account with negative payment history still affect your credit score?


@Jagajaga wrote:

I have a few closed accounts with multiple late payments. Although these accounts are closed with zero balances, are there still holding my credit score back?


Sadly they are affecting your score just the same if they were open.

Message 2 of 7
Anonymous
Not applicable

Re: Does a closed account with negative payment history still affect your credit score?

Yes.  Those late payments still affect your score.  Closing the account does not affect the late.

 

If you join the Rebuilding forum, they may be able to help you develop a long range strategy for eventually getting lates or other derogs removed.  Creditors never have to remove anything that is factually true, but there are strategies for increasing the chance that they might agree to do that.  The Rebuilding folks may be able to help.

Message 3 of 7
RobertEG
Legendary Contributor

Re: Does a closed account with negative payment history still affect your credit score?

Update of the balance to $0 additionally does not negate the fact that the delinquencies occured.

They are still scored.

 

Is the balance now $0 because the debt was paid, or because the creditor sold the debt?

If the later, then their remains the possibility of further score damage should the new owner report a collection.

Message 4 of 7
takeshi74
Senior Contributor

Re: Does a closed account with negative payment history still affect your credit score?


@Jagajaga wrote:

I have a few closed accounts with multiple late payments. Although these accounts are closed with zero balances, are there still holding my credit score back?


Yup.  Rebuilders would love it if addressing derogs was as simple as closing an account with a zero balance.  The current/latest balance and the payment history are two entirely different matters.

Message 5 of 7
Anonymous
Not applicable

Re: Does a closed account with negative payment history still affect your credit score?


@Jagajaga wrote:

I have a few closed accounts with multiple late payments. Although these accounts are closed with zero balances, are there still holding my credit score back?


How recent are the lates? and how late are they?

Message 6 of 7
willwar14
Valued Contributor

Re: Does a closed account with negative payment history still affect your credit score?

DM has a 817 TU with a 6 year old 30d late on an account. I think they don't affect you much after years 2 years.

CH7 FILED: 08/18/2022, DC: 01/23/2023
Message 7 of 7
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