Bill Me Later then PayPal Synchrony closed my account

[ficomember]

I saw a hit on my report today that one of my accounts is closed. It appears to be Paypal credit card which I don't recall having one. So I called the paypal card's line and inquired about this. It turns out to be the bill me later service that I had way back in 2012, then it was converted to Paypal by Synchrony bank. It was opened by me (bill me later) back in 2012 and I didn't use that service since then. So now the account was closed due to inactivity. I had no idea it was a credit to use that bill me later service.  

I don't want it to reopen but question is whe account is closed by the issuer and not me, does that negative impact my credit report? If yes, what can I do to get this resolved? It's so crazy that I never heard from paypal, synchrony or bill me later until now 2019!!!

[FinStar]

No impact whatsoever with regard to scoring with "Closed by Credit Grantor" notation.

The account will still factor into your AAoA for up to 10 years from the date of closing.

[DaveInAZ]

Yes, it was Bill Me Later which became PayPal Credit issued by Comenity Bank. Under Comenity it was a "hidden trade line", they never reported the account to the credit bureaus, which is why you never saw it before on your credit report. Synchrony took it over earlier this year and recently started reporting it to the credit bureaus, so that's your sudden "hit".

The closed account will have a note "Closed by credit grantor" which is a minor negative as opposed to "Closed by consumer" when you close account. But the open date in 2012 will be a positive on your credit report, increasing your average age of accounts.

[FinStar]

I would just clarify that a simple closure of an account by a lender for inactivity represents no "minor negative" impacts when it comes to scoring or automated algorithms or even manual review.

On these forums, a variety of folks tend to see the notation as a negative stigma and "prefer" to close an account on their own terms vs the lender. But, at the end of the day, no minor negative.

[Anonymous]

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@DaveInAZ wrote:

The closed account will have a note "Closed by credit grantor" which is a minor negative as opposed to "Closed by consumer" when you close account. 

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I think it is very situation dependent whether it is a minor negative at all.   Certainly it doesn't impact score so we are talking about impressions on a manual review.    Closed by credit grantor can happen in several different types of situations, including lack of use, and my guess is it is on;ly negative if the reviewer sees several accounts closed in a short period of time, rather than individual cases among a thicker file.

ETA: finstar beat me to clarification!

[Meanmchine]

You're fine. The only time this note comes into play is if a lender does a manual review of your file, and only then it would be a subjective decision