What happens to credit history if lender shuts down?

[Anonymous]

What will happen if I have good credit history with Washington Mutual or Wachovia for example and they are bought out or shut down completely?   When the bank no longer updates the bureaus,  will these accounts fall off the report ?   Just worried because I have long history and zero  balances with both banks and if these are not reported, will my FICO be impacted?:

[Anonymous]

Very good question!
I don't know the answer for sure, but the "WAMU web page" states something like "no changes for business things NOW". In general, I assume that a TL stays in your report, even if it doesn't get updated by somebody.

[haulingthescoreup]

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@Anonymous wrote:

What will happen if I have good credit history with Washington Mutual or Wachovia for example and they are bought out or shut down completely?   When the bank no longer updates the bureaus,  will these accounts fall off the report ?   Just worried because I have long history and zero  balances with both banks and if these are not reported, will my FICO be impacted?:

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One of the few things of value WaMu had left was its credit card portfolio. It's a valuable asset, because it represents accounts receivable.

Whoever wound up winds up with the CC's from a failed/ absorbed bank will happily continue to maintain the CC's (and their records), because that's income for them.

[Miner]

Since the Great Depression, banks are never shut down completely, the fed makes sure they are eventually merged into another institution.  So all your existing accounts will end up at some other bank.  Though in a case of a complete failure, you'd loose anything above the FDIC limit of $100k (this has never happened since they created it).

If you have an open account, whoever ends up owning the account will continue to update your credit file.  After all, whoever the new owner is, they want you to continue your payments since they want to make money and will ding you like always when you are late.

[Anonymous]

  Wonderful !  

Thanks so much!