topic Re: "Account closed by creditor" -- good or bad? in General Credit Topics

"Account closed by creditor" -- good or bad?

Anonymous — Fri, 04 Mar 2011 03:37:19 GMT

I have a credit card account that was closed seven and a half years ago. I'd forgotten to pay the bill and the bank closed the account. Six months ago (ie after seven years) the negative went off my credit report (Yay!). So the status is now "Pays as agreed" with no blemishes, but the remarks say: "Account closed by credit grantor".

I've found that what's in the comments does matter, so I'm worried this will impact my score. The guy at TransUnion said that negatives go away after seven years but good accounts stay for ten but not to worry since this was a good account. I think it's never good when the creditor closes the account.

So, is it better to have:

- A "pays as agreed" account that was closed by the creditor,

- or to challenge it and hopefully get it removed?

Re: "Account closed by creditor" -- good or bad?

MarineVietVet — Fri, 04 Mar 2011 03:57:55 GMT

@Anonymous wrote:
I have a credit card account that was closed seven and a half years ago. I'd forgotten to pay the bill and the bank closed the account. Six months ago (ie after seven years) the negative went off my credit report (Yay!). So the status is now "Pays as agreed" with no blemishes, but the remarks say: "Account closed by credit grantor".

I've found that what's in the comments does matter, so I'm worried this will impact my score. The guy at TransUnion said that negatives go away after seven years but good accounts stay for ten but not to worry since this was a good account. I think it's never good when the creditor closes the account.

So, is it better to have:

- A "pays as agreed" account that was closed by the creditor,
- or to challenge it and hopefully get it removed?

Welcome to the forums.

It doesn't matter whether the account was closed by the customer or the creditor. The notation "Account closed by credit grantor" at one time was probably not a good thing but with all the craziness going on in the credit world the last few years and the many accounts closed by creditors it's not looked at as a bad thing anymore.

From a BK years ago to:
EX - 9/09 pulled by lender 802, EQ - 2/11-816, TU - 2/11-782

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

Re: "Account closed by creditor" -- good or bad?

RobertEG — Fri, 04 Mar 2011 09:38:29 GMT

A lot depends, in my opinion, on other status codes in your CR at the time the credtior closed the account. If the status of the account was, for example, 120-days late at the time they closed it, that has an obvious implication. However, if the account was in good standing, or only 30-days late, for example, the implications would probably be quite different. FICO doesnt care who closed the account. How another creditor might view the circumstances is totally up to them.

Re: "Account closed by creditor" -- good or bad?

Anonymous — Fri, 04 Mar 2011 13:32:36 GMT

another scenario is if you had a credit card with a 0 balance and good standing that u just didnt use, the creditor can close that too. it doesnt mean u where bad with the credit card it just means maybe u just didnt find any interest or use in actually spending it. you should not loose points for that

Re: "Account closed by creditor" -- good or bad?

llecs — Fri, 04 Mar 2011 14:19:24 GMT

OP, you are good to go. There's no harm per FICO whatsoever. Per manual review, I have a couple of TLs with that mention. We bought a new home last month and the lender didn't blink twice.

Re: "Account closed by creditor" -- good or bad?

marty56 — Sun, 06 Mar 2011 20:29:04 GMT

Most of my accounts that I had in DMP show up that way and all of those have a comment about being managed CCCS. Has had zro effect on my FICO score or ability to get new credit. You should be good to go.

Re: "Account closed by creditor" -- good or bad?

Imua — Tue, 08 Mar 2011 17:58:04 GMT

@Anonymous wrote:
another scenario is if you had a credit card with a 0 balance and good standing that u just didnt use, the creditor can close that too. it doesnt mean u where bad with the credit card it just means maybe u just didnt find any interest or use in actually spending it. you should not loose points for that

that happened to me when jc penney pulled out of hawaii, closing all of their stores here. ?iirc, it was in 2003

after a year of me not using my card, jc penney closed my account. my TL reads $0 balance, closed by creditor (no lates).

i currently have 2 FICO scores above 800 (803 and 811).