Accounts Closed By Grantors

[kingsings13]

Hello all,

Newbie here, who is determined to take responsibility for, and turn my credit woes around!  Early last year, I fell seriously behind on 3 accounts due to circumstances out of my control.  The accounts were subsequently closed by the grantors, all with balances still owed.  The status of each account, as shown on my credit reports are "Accounts Closed by Grantors".  When my finances improved, I took the initiative to set up automatic bi-weekly payments of $75 per pay check to go to each account, and now all balances are as follows:

Bank of America: $559

Chase: $420

Home Depot (CitiBank NA): $640

I will have these accounts paid off within the next few months, but from what I've read on the forum, simply paying them off may not improve my credit score much (TU:643, EQ: 579, EX:590).  What types of GW letters might be useful in this situation?  Or would a pay for delete work here?  I anticipate that I'll be able to pay at least two of these off in full with my tax refund if a PFD is even an option for me.

Thanks in advance for any and all assistance!

[Jutz]

It sounds like they were closed, but not charged off.  Once they have a $0 balance the only negative aspect would be via manual review, as you may have to answer questions as to why they were closed.  But otherwise, your score should not be impacted by the reason for closing.  People have their cards closed for inactivity all the time.  As for their effect right now, they are killing your UTIL, because the balance factors, but not the credit limit.

[Shogun]

Although a PFD is always a great choice to start with.  I really don't see you having much luck with one on those 3.  I think the GW process when they are paid would be more beneficial.

[Jutz]

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@Shogun wrote:

Although a PFD is always a great choice to start with.  I really don't see you having much luck with one on those 3.  I think the GW process when they are paid would be more beneficial.

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If they are not charged off, which it doesn't sound like, would there be any reason to want them removed, other than a spotless manual review file?  I have a 6 year old BOA card that I had closed but not C/O, and I had wanted it completely removed because I had a 60 and 90 day late, but they removed those, so now I'm pretty content with it helping my AAoA.