Re: Does FICO factor "Current Status" on closed accounts?
01-08-2013 12:24 PM
Current status is a hybrid code. It is a snapshot only, and does not relate to prior history.
While an account has a current delinquency, the current status will reflect that level of delinquency. However, when some payment status occurs that places the account back into good standing, or the account is closed and satisfied, the current status switches over to then reflect current payment status.
All prior delinquencies are retained under separate reporting codes, which are retained. When scoring payment history, FICO looks at those codes, not the current status, which does not reflect prior history.
If the closed account is subsequently satisfied, its current status will switch to paid, and the prior lates will all be retained under their separate codes, and continue to be scored.