Moderator Emeritus
llecs
Posts: 32,880
Registered: ‎08-04-2007
Re: Does FICO factor "Current Status" on closed accounts?

tacoblade wrote:

Ok, got it. So FICO does not factor "Current Status" when scoring, only account history. I'm betting FICO does not discount late marks reported after the date a given account was closed (wrong as it may be), and that my credit score is getting screwed sideways due to the servicer's reporting error.

 

Thanks to you both for weighing in on my situation.


It certainly does. It doesn't matter when an account was marked closed, any late showing will impact the FICO score. For example, let's say you have a CC and for whatever reason the lender closes the account. Maybe they went out of business. Maybe there was some derogs reporting which influenced their decision, or whatever. Anyway, they close it and you're on-time up to that point but there's a balance remaining you're paying on. Let's say you pay it late going forward a year after it's closed. If you're late 30 days, FICO will score that 30-day late even though the date of closure was a year prior. The status will update to something like "Was 30 days late" or something like that after bringing the account current again. The worst delinquency is 30 days and FICO will score accordingly.