Closed account w. balance helping?

nycfico · ‎10-08-2014

About four years back, Barclays closed my account after many 20, 60 90 and 120 days late. For about two years, I've been making payments every month on time and the balance is down to about $6,000 from a high of about $12,000. They recently goodwilled me (after I called and plead my case) and deleted all late payments....obviously I was really happy over that as I know have a completely clean tradeline that goes back to the early 00's.

But I am wondering...how is this current situation effecting my scores? On the one hand, it's a clean tradeline that gets longer each month. On the other hand, it's a closed account (not charged off, closed).

Am I being helped every so slightly each month as I make on-time payments? Or is it simply aging now since it was closed out and not getting older?

Revelate · ‎10-09-2014

Not entirely certain on that count.

Technically it'll count against your revolving utilization without the benefit of having the full (old) CL available so it'll be 6K/6K or whatever as I understand it though we've had some awkward discussions around that lately.

Payment history, we know FICO doesn't count the tradeline as open date to closed date for negatives, so it's entirely possible that this is having a beneficial effect on your payment history but it's an unusual circumstance and it's hard to say. Realistically it should: the lender has extended you credit and you're making on time payments for it... that should be a straight plus and if I had to wager that's the way it's implemented, I'm just not 100% confident of it.

Serious congrats on getting the lates GW'd off, that's a tremendous win regardless.

nycfico · ‎10-09-2014

@Revelate wrote:
Not entirely certain on that count.

Technically it'll count against your revolving utilization without the benefit of having the full (old) CL available so it'll be 6K/6K or whatever as I understand it though we've had some awkward discussions around that lately.

Payment history, we know FICO doesn't count the tradeline as open date to closed date for negatives, so it's entirely possible that this is having a beneficial effect on your payment history but it's an unusual circumstance and it's hard to say. Realistically it should: the lender has extended you credit and you're making on time payments for it... that should be a straight plus and if I had to wager that's the way it's implemented, I'm just not 100% confident of it.

Serious congrats on getting the lates GW'd off, that's a tremendous win regardless.

Thanks....I was on the phone for about an hour with them one day and explained the really tough times I was having three to five years ago and how ever since 2012 to now I've been on time every single payment and would they consider deleting them...I had to talk to a number of people, but they were very reasonable and I was somewhat shocked but they did it...

I'm now in the 630's pretty much across the board after being in the 520 to 550 range or so in January. My major problem is an IRS lien that i''m paying off each month, but the rest of my book is starting to look respectable again and I'm hoping that this is helping...It's a low interest rate (1% I believe) and every month it adds another green box to the tradeline, so I hope it's helping.

Revelate · ‎10-09-2014

@nycfico wrote:
@Revelate wrote:
Not entirely certain on that count.

Technically it'll count against your revolving utilization without the benefit of having the full (old) CL available so it'll be 6K/6K or whatever as I understand it though we've had some awkward discussions around that lately.

Payment history, we know FICO doesn't count the tradeline as open date to closed date for negatives, so it's entirely possible that this is having a beneficial effect on your payment history but it's an unusual circumstance and it's hard to say. Realistically it should: the lender has extended you credit and you're making on time payments for it... that should be a straight plus and if I had to wager that's the way it's implemented, I'm just not 100% confident of it.

Serious congrats on getting the lates GW'd off, that's a tremendous win regardless.
Thanks....I was on the phone for about an hour with them one day and explained the really tough times I was having three to five years ago and how ever since 2012 to now I've been on time every single payment and would they consider deleting them...I had to talk to a number of people, but they were very reasonable and I was somewhat shocked but they did it...

I'm now in the 630's pretty much across the board after being in the 520 to 550 range or so in January. My major problem is an IRS lien that i''m paying off each month, but the rest of my book is starting to look respectable again and I'm hoping that this is helping...It's a low interest rate (1% I believe) and every month it adds another green box to the tradeline, so I hope it's helping.

Do you have a negotiated Direct Debit Installment Agreement with the IRS?

If so, get that airstruck under the Fresh Start program.

http://www.irs.gov/uac/Newsroom/IRS-Fresh-Start-Program-Helps-Taxpayers-Who-Owe-the-IRS/

nycfico · ‎11-11-2014

Just seeing this now...sorry.

I owe over $50,000 across two different liens (about $65,000 right now). My understanding is that I need to be under $50,000 to get it struck. Although....I did talk to the IRS the other day and they suggested I call their non streamline group ....she didn't say it could be done, although I did (coincidental to your post here) think it won't hurt to ask.