Moderator Emeritus
Posts: 32,865
Registered: ‎08-04-2007
Re: credit card closed

xcdad wrote:

We have several revolving credit cards that we intend to pay off in full soon, in the context of a divorce.  We considered letting them all become delinquent, to try to negotiate balance reductions in connection with paying off.   We decided that the costs of that strategy were too great.   Unfortunately, one card did go unpaid and was reported as follows:  Hist:  321111111111111111111111   CLSD  09-__ APP   Lates: 1x60:9-__; 1x30:8-__ CLOSED BY CREDITOR.  Will negotiating a deal with this creditor to pay less than full balance as settement further reduce credit rating, or is full extent of damage already done?  Conversely, will paying in full without any deal result in any credit repair?  No other cards show any lates.  Plan to pay all the other cards in full, with hopes of not only eliminating debt/interest but also improving credit rating.  any advice or insights would be appreciated.    

Welcome to the forums!

I'd suggest reading the following:

Common Abbreviations

Credit Scoring 101 - great for knowing what is in your credit score and to see how your score is impacted.

What Steps Do I Take - great for learning the repair process.

and Example letters - PFDs, GWs, DVs, etc.


The damage is already done if those lates are recent. Whether the account is paid, unpaid, current, or not current, the lates will still be there, though the damage will fade with time. However, whether good or bad, this card is likely still factoring into your CC util. So, paying it off might help or hurt your FICO score due to changes in CC utilization. Once the balance goes to $0, then it is forever removed from CC util. In other words, if this CC is hurting your CC util, then paying it off could very well result in a score increase. Conversely, if this CC has a low balance and is helping your overall CC util, then paying it off can hurt your FICO if your overall util increases as a result of this payoff.


Whether it helps or hurts, it needs to be paid off anyway. It'll hurt more to have a collection agency report or to be sued for the debt. You can also send a GW letter to this CC company and ask if they wouldn't mind deleting the lates. Some will. Most won't.