Credit Reporting- Closed or C/O?

[Anonymous]

Hello All,

   So I think I know the answer based on a common-sense approach but then again I am talking about a credit bureau.  I have an account both on Equifax and Experian. On Equifax, it shows as a "closed" installment account. The account is 8 years and 4 months old. When you look at the details the 'status' says "charge-off". So what I'm asking is can they be both? Since closed accounts stay on 10 years and charge-offs are 7 years. Shouldn't it just be a charge-off? My thinking is that's mixing apples with oranges and I would think what is more beneficial to the consumer should be the ruling classification. 

On an extra note, I got a notification that this company (800loanmart) added to my Equifax recently it was already on my Experian same situation but isn't that illegal to knowingly add something if the statute of limitations has passed (if I'm correct about the above)?

[dragontears]

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@Anonymous wrote:

Hello All,

   So I think I know the answer based on a common-sense approach but then again I am talking about a credit bureau.  I have an account both on Equifax and Experian. On Equifax, it shows as a "closed" installment account. The account is 8 years and 4 months old. When you look at the details the 'status' says "charge-off". So what I'm asking is can they be both? Since closed accounts stay on 10 years and charge-offs are 7 years. Shouldn't it just be a charge-off? My thinking is that's mixing apples with oranges and I would think what is more beneficial to the consumer should be the ruling classification. 

On an extra note, I got a notification that this company (800loanmart) added to my Equifax recently it was already on my Experian same situation but isn't that illegal to knowingly add something if the statute of limitations has passed (if I'm correct about the above)?

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Yes an account can be both closed and CO.

negative information is removed from your reports after 7 years, doesn't matter if it is on an account that is closed or open. 

positive accounts are removed generally after 10 years from closing date

It is possible to have an account be negative and turn positive, such as having late payments fall off an account closed in good standing ( I have personally experienced this).

SOL is the time frame in which you can be sued for a debt and has nothing to with reporting time frames. 

[RobertEG]

They are entirely different types of information reported for entirely different purposes.

Open vs closed refers to whether or not the account remains available for new transactions by the consumer.

It does not relate to whether or not the account was or remains delinquent.

Closed revolving accounts mean that the consumer cannot make new transactions that continue to increase the debt balance.

Either the consumer or creditor can choose to close an existinf revolving account, but the account can be either current under the account agreement or it can be or become delinquent.

Installment accounts, in distinction, are not per se subject to new transactions that can increase the principal debt balance, and thus only become "closed" when the contracted debt has been discharged. There is no meaning to, and the CRA Metro 2 reporting format makes no provision for closing an installment account that has not been paid or discharged

Reporting of a charge-off is not a statement of whether the account is open or closed, it is a statement of whether or not the account is or was delinquent and additionally subjected to a charge to profit and loss in the creditor's accounting ledger.

Exclusion of information at 7 years applies only to adverse items of information, and a CO can be excluded at 7 years with or without additional and separate deletion of the account.

Deletion of accounts after approx ten years from closure is not mandated by the FCRA, but rather is a housecleaning measure subjectively taken by a CRA for internal business purposes. Since ten years is longer than the normal 7 year exclusion period for delinquencies that were previously reported, account removal at 10 years almost invariably removes only positive information