Are closed accounts reported for 10 years?

[GatorGuy]

Would you mind me asking what is bumpage?

[FocusedAndDetermined]

I have 1 or 2 accts (depending on CBR) that are over 10 yrs closed and still appear, even though they have not been updated in ages.

[guiness56]

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@HiLine wrote:

So many people have said that closed accounts are reported for 10 years that this has been taken for granted. But like many other rumors such as the Amex Green being easier to be approved for than the Amex PRG, this needs to be revisited some time since the accuracy of this little piece of info is very important for making credit decisions.

As far as I know, creditors are under no obligation to report tradelines that are closed; they do this voluntarily. If you close an account that has a $0 balance, you are at the mercy of the bank for how long the positive history of the tradeline will stay on your credit history. There is no guarantee they will keep reporting at all. It is my understanding that most banks report positvely closed accounts for several years, but the length of the period seems to fluctuate arbitrarily.

It has been brought to my attention that even a very influential sticky thread: http://ficoforums.myfico.com/t5/Credit-Cards/Closing-Credit-Cards/td-p/347190 quotes the 10 years length of time, and that has provided the basis for some posters on this board to close tradelines. I'm hoping to clear up this myth so we can make more informed decisions as well as advice in the future.

Any thoughts?

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It doesn't matter whether the creditor reports the TL or not.  Once an account is closed and in positive standing, it can stay for up to 10 years at the descretion of the individual CRAs.  As a matter of fact, the Credit Reporting Resource Guide states that once an account is paid in full and closed that it shoud not be reported for more than 3 months.  That does not mean it will be removed.

Creditors are under no obligation to report ANY tradeline, open, closed, good or bad.  The only thing they are obligated to do is report accurate information.

Where are you getting information to call it a myth?

[guiness56]

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@fittiger wrote:

I thought once the accounts were closed and paid off, the creditor no longer reports to the CRA's on that account.  What would be the need to report on a closed out account, it won't change at that point?

I think it just remains for 10 years until the CRA's remove it at that point.   (speculative)

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You are correct.

[HiLine]

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@guiness56 wrote:

It doesn't matter whether the creditor reports the TL or not.  Once an account is closed and in positive standing, it can stay for up to 10 years at the descretion of the individual CRAs.  As a matter of fact, the Credit Reporting Resource Guide states that once an account is paid in full and closed that it shoud not be reported for more than 3 months.  That does not mean it will be removed.

Creditors are under no obligation to report ANY tradeline, open, closed, good or bad.  The only thing they are obligated to do is report accurate information.

Where are you getting information to call it a myth?

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 The bolded part is very interesting ... Would you mind sharing the source so I can peruse a little?

Enough people have reported their accounts being dropped in less than 10 years to make the rumor that closed accounts are reported for 10 years a myth.

[enharu]

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@w20031424 wrote:

B*  is just not as easy as it was several years ago, it still works for the overwhelming majority of people as far as I know.

Yes, some may bounce back on TU, while other inquiries don't, and still, according to what I see, a relatively small portion of people see these things.  As of the lender see different CR with you? I havn't heard of any news about this. I will just ask them how many inquiries they see next time I recon for something. 

I do see about ten inquireis fall off from my TU since I started the exercise last month. Not on EQ yet, because it will take about 60 days to effect.

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Um, so you're saying you just somehow coincidentally managed to know a lot of people who got it to work?

With regards to the part I highlighted red, this is another post made by you:

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@w20031424 wrote:

Yeah, there used to be 26 and 25 on EQ and TU, respectively. But now all got B* by me. 

For EX, there are about six inquiries on March, five on April, eight on June, five on Oct. of 2012.  So that's about 29 inquiries on EX, 1 within six months, when I started my app spree in April, 2013, still no problem for getting approved.

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So you had 26 on EQ, 25 on TU.

And then you also said this:

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@w20031424 wrote:

Yep.. But 1-2 inquiry on EQ and TU, respectivly.

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So......

I'm very confused.

26 - 2 = 24 inquiries bummed off (for EQ)

25 - 2 = 23 inquiries bummed off (for TU)

And may I ask where did you read about the "60 day to take effect" rule? This is the first time I'm reading about this.

Anyhow, now you're saying 10 inquiries fell off TU, none fell off on EQ?

So what's the story exactly.............

[Dubious]

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@guiness56 wrote:

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@HiLine wrote:

So many people have said that closed accounts are reported for 10 years that this has been taken for granted. But like many other rumors such as the Amex Green being easier to be approved for than the Amex PRG, this needs to be revisited some time since the accuracy of this little piece of info is very important for making credit decisions.

As far as I know, creditors are under no obligation to report tradelines that are closed; they do this voluntarily. If you close an account that has a $0 balance, you are at the mercy of the bank for how long the positive history of the tradeline will stay on your credit history. There is no guarantee they will keep reporting at all. It is my understanding that most banks report positvely closed accounts for several years, but the length of the period seems to fluctuate arbitrarily.

It has been brought to my attention that even a very influential sticky thread: http://ficoforums.myfico.com/t5/Credit-Cards/Closing-Credit-Cards/td-p/347190 quotes the 10 years length of time, and that has provided the basis for some posters on this board to close tradelines. I'm hoping to clear up this myth so we can make more informed decisions as well as advice in the future.

Any thoughts?

---

It doesn't matter whether the creditor reports the TL or not.  Once an account is closed and in positive standing, it can stay for up to 10 years at the descretion of the individual CRAs.  As a matter of fact, the Credit Reporting Resource Guide states that once an account is paid in full and closed that it shoud not be reported for more than 3 months.  That does not mean it will be removed.

Creditors are under no obligation to report ANY tradeline, open, closed, good or bad.  The only thing they are obligated to do is report accurate information.

Where are you getting information to call it a myth?

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I think HiLine's idea with this thread is to gather data points to see how often, or if, tradelines stay the full 10 years. They can stay "up to" 10 years but on average do they usually stay 10 years, or less? 

I personally don't have any closed accounts to draw conclusions from. 

[guiness56]

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@HiLine wrote:

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@guiness56 wrote:

It doesn't matter whether the creditor reports the TL or not.  Once an account is closed and in positive standing, it can stay for up to 10 years at the descretion of the individual CRAs.  As a matter of fact, the Credit Reporting Resource Guide states that once an account is paid in full and closed that it shoud not be reported for more than 3 months.  That does not mean it will be removed.

Creditors are under no obligation to report ANY tradeline, open, closed, good or bad.  The only thing they are obligated to do is report accurate information.

Where are you getting information to call it a myth?

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 The bolded part is very interesting ... Would you mind sharing the source so I can peruse a little?

Enough people have reported their accounts being dropped in less than 10 years to make the rumor that closed accounts are reported for 10 years a myth.

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I stated the source.

There is no hard and fast 10 year rule.  It is UP TO 10 years.  I have an account that has been reporting for well over 10 years and has not been updated/reported by the creditor for just as long.

[HiLine]

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@guiness56 wrote:

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@HiLine wrote:

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@guiness56 wrote:

It doesn't matter whether the creditor reports the TL or not.  Once an account is closed and in positive standing, it can stay for up to 10 years at the descretion of the individual CRAs.  As a matter of fact, the Credit Reporting Resource Guide states that once an account is paid in full and closed that it shoud not be reported for more than 3 months.  That does not mean it will be removed.

Creditors are under no obligation to report ANY tradeline, open, closed, good or bad.  The only thing they are obligated to do is report accurate information.

Where are you getting information to call it a myth?

---

 The bolded part is very interesting ... Would you mind sharing the source so I can peruse a little?

Enough people have reported their accounts being dropped in less than 10 years to make the rumor that closed accounts are reported for 10 years a myth.

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I stated the source.

There is no hard and fast 10 year rule.  It is UP TO 10 years.  I have an account that has been reporting for well over 10 years and has not been updated/reported by the creditor for just as long.

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Cool. And I don't dispute the "up to 10 years" part. If you have the impression I did, feel free to refer to my unedited original post.

[Bluedog23]

Isn't it a good thing if a CRA leaves an account on for way more than 10 years? Assuming it reports positively. That would help AAoA. Right?