The 10 year draw period on my HELOC recently ended. BOA is now reporting to the CRA's that the account is closed since the draw period is over. Now my credit score took a pretty big hit as this was the oldest account on my report. Now my accounts have a much lower average age. Question is, does BOA's reporting of the account being closed seem right? I would think since I still make payments, that the account is still open and should be reported that way to the CRA's. Any ideas?? Thank you, George
I would think their reporting is right. Since you can no long draw on the account it is similar to a credit card that you close but still has a balance. You close the account and no new charges can be made, but you still have to pay it off. Its the same thing with your HELOC .
A HELOC is a revolving line of credit.
Closing by the creditor ends the ability of the consumer to make additional use of the line of credit, and thus increase the debt.
The fact that you still have debt on the account and are making payments is not related to the closing of the account to further increase in debt.