What is the appropriat
e status for a paid/close d installmen t account?
08-30-2012 10:13 AM
When you pay off an installment loan, is it common practice for them to change your account status to your worst delinquency. I spoke with the CRA's and they said it is up to the crditor. They can leave it as the status as of the time that you closed it, or they can make it the worst delinquency over the course of your account history. For example, if you had a 30 day late 5 years ago, but they have been reportting you as current since then, when you pay/close the account, they can use that field to report the "entire account status" and put your account status back to 30 days past due, because you had once been 30 days past due. It seems like the field "worst delinquency" is the place for this information and your account status should be where your status was at the time of closure. Or they can leave it as paid as agreed because that was your status as of the last month reported.
Which was is the FICO scoring model expecting them to characterize this account?
Starting Score: EQ 740, EX 792 (lender pull), TU 751 (lender pull)
Current Score: EQ 740, EX 792 (lender pull), TU 751 (lender pull)
Goal Score: 2 over 760 and one over 800
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