topic Re: Change in the way a closed account is reporting--any implications on this? in Understanding FICO® Scoring

Change in the way a closed account is reporting--any implications on this?

haulingthescoreup — Sun, 11 May 2008 00:09:33 GMT

Just got a ScoreWatch alert! Once I recovered from the excitement, it took twenty minutes to figure out what had changed. At first it said that the status had changed from N/A to N/A, which wasn't very enlightening, but finally I found the real thing. Here's the alert details:

XXXXXXXXXX BANK PRIVATE LA - # XXXXXXXXXXXX5382

Account opened: 2/2003

Previously reported

Description: Account closed by consumer - Credit card

Newly reported

Description: Account closed at consumer's request - Closed or Paid Account/Zero Balance

This was an old bank account that pretended to be a CC but was actually the billing for a gym membership. As you can see, the previous description said "Credit card", but it now says "Closed or Paid Account/Zero Balance." They also tweaked the jargon stating that I'm the one who closed it.

I pulled a full EQ report (yay for EQ Credit Watch Gold), and the changes do not show on today's report, even though they also sent me an alert last night. Huh?

Any scoring implication on this for the future, or something that might impress or dismay other lenders on manual review?

There was no score change with this, just the slight change in wording on the report.

Re: Change in the way a closed account is reporting--any implications on this?

smallfry — Sun, 11 May 2008 00:15:32 GMT

Well I guess for 6 bucks a month they need to show you something. Much ado.

Re: Change in the way a closed account is reporting--any implications on this?

marty56 — Sun, 11 May 2008 00:28:12 GMT

I suppose the new wording is more accurate.

I was so confused by TL like that I went to the Experiian site to get my CR the other and it just said my account was closed.

Funny thing was it also said that nothing was helping my Plus score and in the next paragraph it said nothing was hurting it. Reminds me of a scene in an old Woody Allen movie.

I am waiting for BofA close close my final DMP account in which case the TL would say:

Account closed since Marty is a worthless worm. Sucks to be him.

Go ahead BofA make my day. By the time they figure out the account is still helping my util, my total util, I will only be reporting $471 total util.

Re: Change in the way a closed account is reporting--any implications on this?

Anonymous — Sun, 11 May 2008 02:00:16 GMT

Hauling check this out, kind of opposite of yours. This just happened today!

Previously reported $0
Past due: Not Reported
Status: Pays account as agreed
Last activity: 1/1/2007
Description: Account closed at consumer's request Closed or Paid Account/Zero Balance Charge Account

Newly reported Balance: $0
Past due: Not Reported
Status: Pays account as agreed
Last activity: 1/1/2007
Description: Account closed at consumer's request Charge

Weird I have the opposite!!!

Message Edited by miahmarie on 05-10-2008 07:00 PM

Re: Change in the way a closed account is reporting--any implications on this?

haulingthescoreup — Sun, 11 May 2008 03:28:20 GMT

Did we trade???

I don't know why they feel obliged to start playing around with terminology. I suppose I don't particularly care how they report it, as long as something doesn't blow up as a result.

I mean, there must be some reason why they swap things out. It's actually more accurate on mine, in that it was never a CC, but it's odd that they also changed the phrasing on closed by consumer.

Are they that bored over at EQ?

Re: Change in the way a closed account is reporting--any implications on this?

Anonymous — Sun, 11 May 2008 16:05:58 GMT

I don't know. The first one reported on April 24th. I have been closing the small department store cards that I know I will not use. Then on the 9th of May this shows up.

It makes no sense to me. Does it hurt me for the new one not to say-paid account zero balance? There was absolutely no score change associated. So I guess not. But there is a difference. So I wonder if the words actually matter or not.

Closing the accounts did not hurt my score. But I figured that would be the case as I have low utilization and had gotten a few balance increases on some of my major cards.

I am with you. I just hope this doesn't blow up later.

I do think it is odd.

Re: Change in the way a closed account is reporting--any implications on this?

Anonymous — Wed, 14 May 2008 02:36:03 GMT

new alert today, it reverted back to the original reporting data. Very strange!

Oh well, as long as it stays closed and zero balance they can report with whatever words they choose!

Re: Change in the way a closed account is reporting--any implications on this?

Anonymous — Wed, 14 May 2008 04:17:29 GMT

marty, I love your status change ... "is a worthless worm.." LOL

Re: Change in the way a closed account is reporting--any implications on this?

RobertEG — Fri, 30 May 2008 01:53:55 GMT

For FICO scoring, who closed an account has absolutely no bearomg upon scoring. FICO only looks at wheter the account is open or closed. That does not mean to say that all closed accounts are treated the same, for accounts that are not in good standing when closed can still have their upaid balances included in %util, and also dont trigger the running of the FCRA 7 year period blocking future reporting of derogs against the account util it is placed in good standing.