Account Reportign Status Error (Need Advice)

Anonymous · ‎07-03-2017

I currently have a auto loan through US BANK which has one late from 10/2015. The account is reporting open and current on two of three bureaus however on one it is reporting "CLOSED" and all payments up to date as I am making them on time monthly. How is this impacting my score since its really open and not a closed account? I am in the process of purchasing a home and I did not want to dispute it to have the account status update however if I can get extra point for having it switched from closed to open I do want to do that. What are your advices? If its reopen will my score be affected because of the late from 10/2015?

Anonymous · ‎07-03-2017

@Anonymous wrote:
I currently have a auto loan through US BANk which has one late from 10/2015. The account is reporting open and current on two of three bureaus however on one it is reporting "CLOSED" and all payments up to date as I am making them on time monthly. How is this impacting my score since its really open and not a closed account? I am in the process of purchasing a money and I did not want to dispute it to have the account status update however if I can get extra point for having it switched from closed to open I do want to do that. What are your advices? If its reopen will my score be affected because of the late from 10/2015?

Can you explain further what you mean by saying "I am in the process of purchasing a money"? Not sure what that means.

It sounds like the bureau in question has two errors on it related to this account:

(1) It should say that you were late in Oct 2015, but instead it says that you have never been late on any payments.

(2) It should say that the loan is open, but instead it says it is closed.

Is that right?

And what you are worried about is, if you try to fix #2, it might end up causing #1 to get fixed too.

If so that makes sense. What I would do if I were you is find a way to fix the scoring problem resulting from having no open loans, and leave the account alone. That way you will get the best of both worlds.

Happily there is a way to fix the problem of having no open loan without changing that auto loan account. You do it by using something called the Share Secure Loan Technique. Basically you add a new loan, pay almost all of it off, and keep it open for five years. If you want to read about how it works, you can find out all about it here. Just read the first 2-3 posts in this thread:

http://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/Adding-an-installment-loan-the-Share-Secu...

Anonymous · ‎07-04-2017

Thank you for your response. I meant to say I am in the process of purchaasing a home not money. Sorry.
The late payment was reported but the account is just reporting closed when it shuold be active and current. Its reporting closed and current.
So if I call them and ask them to update my account status will this hurt me, again the late payment was in 10/2015.

Anonymous · ‎07-04-2017

Which of the three three bureaus is misreporting the loan as closed? And can you confirm that this is your only open loan?

Anonymous · ‎07-04-2017

This is on my Equifax report.

Only open loans are students loans, one for 20k and the other for 2K but in defferment.

No other loans besides this only CC accounts

Anonymous · ‎07-04-2017

The way that this can affect your credit scores depends a lot of the specific scoring model being used. I'll compare two models to give you an idea of how it works.

FICO 8 is a family of models that was released in 2008/2009. Except for mortgage loans, FICO 8 is main thing lenders and CC issuers use today. FICO 8 looks at your open loans and checks to see whether (a) you still owe most of the original amount or (b) you have paid most of it off. FICO 8 gives you a bunch of extra scoring points if you have paid it off. Thus, if you have paid off most of that car loan, it could help your FICO 8 score.

FICO 04 is an older model (released in 2004). It is used by Equifax for mortgage loans. FICO 04 does not care at all whether your loans are mostly paid off or not. Thus, whether that auto loan appears on your EQ report or not as open doesn't matter if we are talking about a mortgage loan -- and that is what you are talking about. THis is because you already have open loans on your EQ report.

Hope that answers your question.