topic Trade account in limbo in Rebuilding Your Credit

Trade account in limbo

Smooth_J — Sat, 25 Jan 2025 14:50:07 GMT

As part of the payment agreement I had with the creditor, they said they would stop reporting and I can make payments. I said sure, and been doing this for over a year now without issues. However according my credit report, it was like the account was frozen in time. I thought they would at least update the balance, but nothing was updated since 2023, including the amount owed, until today. It finally updated to $0 balance but it wasn't an update from the creditor as it still said updated on 2023. The account is still open as well, and not closed according to the CRAs.

Do the CRAs make the account $0 balance when the creditor has not reported in after a period of time?

Re: Trade account in limbo

GZG — Sat, 25 Jan 2025 17:21:18 GMT

@Smooth_J wrote:
As part of the payment agreement I had with the creditor, they said they would stop reporting and I can make payments. I said sure, and been doing this for over a year now without issues. However according my credit report, it was like the account was frozen in time. I thought they would at least update the balance, but nothing was updated since 2023, including the amount owed, until today. It finally updated to $0 balance but it wasn't an update from the creditor as it still said updated on 2023. The account is still open as well, and not closed according to the CRAs.

Do the CRAs make the account $0 balance when the creditor has not reported in after a period of time?

no the CRA's don't make changes like that, the creditor did that

they just haven't updated a monthly payment status for the last however many months which is why I imagine it's saying that the tradeline was last updated in 2023.

this is the best possible situation, no further/any lates for your payment plan and they've fixed the balance down to $0, congrats!!

Re: Trade account in limbo

Smooth_J — Sat, 25 Jan 2025 17:54:18 GMT

@GZG wrote:
@Smooth_J wrote:
As part of the payment agreement I had with the creditor, they said they would stop reporting and I can make payments. I said sure, and been doing this for over a year now without issues. However according my credit report, it was like the account was frozen in time. I thought they would at least update the balance, but nothing was updated since 2023, including the amount owed, until today. It finally updated to $0 balance but it wasn't an update from the creditor as it still said updated on 2023. The account is still open as well, and not closed according to the CRAs.

Do the CRAs make the account $0 balance when the creditor has not reported in after a period of time?

no the CRA's don't make changes like that, the creditor did that

they just haven't updated a monthly payment status for the last however many months which is why I imagine it's saying that the tradeline was last updated in 2023.

this is the best possible situation, no further/any lates for your payment plan and they've fixed the balance down to $0, congrats!!

I checked directly with TU and pulled a report. So from what I can tell, nothing came from the creditor, but the balance is "blank". So I guess in the eyes of myFICO and others its $0. I am not complaining, however I was worried since I heard that showing a $0 balance means that it was sold off/collections. I just didn't understand why that would be since I was never 30, 60, 90, etc on this account. So I guess I was worried over nothing.

Re: Trade account in limbo

ptatohed — Sat, 25 Jan 2025 21:47:31 GMT

Did you, in fact, pay the balance down to $zero? Recently?

Re: Trade account in limbo

Smooth_J — Sat, 25 Jan 2025 22:17:40 GMT

@ptatohed wrote:
Did you, in fact, pay the balance down to $zero? Recently?

No, it still has a balance... a high one at that.

Re: Trade account in limbo

AndySoCal — Sun, 26 Jan 2025 04:12:35 GMT

@Smooth_J Is this a credit card or an installment loan?

Re: Trade account in limbo

Smooth_J — Sun, 26 Jan 2025 06:24:20 GMT

@AndySoCal wrote:
@Smooth_J Is this a credit card or an installment loan?

Credit card.

Re: Trade account in limbo

ptatohed — Sun, 26 Jan 2025 07:06:27 GMT

@Smooth_J wrote:
@ptatohed wrote:
Did you, in fact, pay the balance down to $zero? Recently?
No, it still has a balance... a high one at that.

Hmm, then it is either Merry Christmas, enjoy your reported $0 balance - or maybe it was sold to a collection agency?

Re: Trade account in limbo

Smooth_J — Sun, 26 Jan 2025 14:35:11 GMT

@ptatohed wrote:
@Smooth_J wrote:
@ptatohed wrote:
Did you, in fact, pay the balance down to $zero? Recently?
No, it still has a balance... a high one at that.

Hmm, then it is either Merry Christmas, enjoy your reported $0 balance - or maybe it was sold to a collection agency?

Yep... my thoughts exactly. I just don't know if I should celebrate or be worried.

Re: Trade account in limbo

AndySoCal — Sun, 26 Jan 2025 21:38:25 GMT

@Smooth_J Iwould call the credit card company and find out. You might want to consider a debt consolidation loan. The interest may be lower than what you currently paying.

Re: Trade account in limbo

Smooth_J — Sun, 26 Jan 2025 22:33:59 GMT

@AndySoCal wrote:
@Smooth_J Iwould call the credit card company and find out. You might want to consider a debt consolidation loan. The interest may be lower than what you currently paying.

I did, and they told me they don't report _anything_ unless I miss a payment, and then I am kicked off the plan. I am also in a 0% plan for several years, so this would be better than any loan at the moment.

Re: Trade account in limbo

pizzadude — Tue, 28 Jan 2025 17:16:10 GMT

Moved to Rebuilding Your Credit