Loan not appearing closed and with a balance even though its paid off and nothing is due...

[joltdude]

Hmm.. I have a loan that closed on Jan 1, 2017 still reporting as open with a balance on it.... but theres no lates and i paid it off in Jan 1, 2017.., Should I wait a bit longer or dispute it on the CRA that is still listing it with a balance?  What kind of effect is that having on my score?

-J

[Anonymous]

The fact that a loan payoff has not yet registered might be helping your FICO 8 score, rather than hurting it.  Thus initiating a dispute could harm your score if the error is currently helping you.

We can make a decent guess if you will tell us more about the loan(s).  Can you tell us what open loans appear on your reports, and what the current balance and original amount owed is for each?  Something like this?

Loan 1.  Balance = ____  Original loan amount = _____

Loan 2.  Balance = ____  Original loan amount = _____

Loan 3.  Balance = ____  Original loan amount = _____

etc.

Do include the loan that is actually closed but is still listed as open (and tells us which loan that is).  Don't include any other closed loan.

[joltdude]

---

@Anonymous wrote:

The fact that a loan payoff has not yet registered might be helping your FICO 8 score, rather than hurting it.  Thus initiating a dispute could harm your score if the error is currently helping you.

We can make a decent guess if you will tell us more about the loan(s).  Can you tell us what open loans appear on your reports, and what the current balance and original amount owed is for each?  Something like this?

Loan 1.  Balance = ____  Original loan amount = _____

Loan 2.  Balance = ____  Original loan amount = _____

Loan 3.  Balance = ____  Original loan amount = _____

etc.

Do include the loan that is actually closed but is still listed as open (and tells us which loan that is).  Don't include any other closed loan.

---

Loan 1 Balance=88 (actually PIF) Loan Amount 500  <-loan reporting as open on TU with the 88 bal, but closed on EX and EQ

Loan 2 Balance=53 Loan Amont 600 (didnt pay it down enough by the time the balance posted last month) (Aliiant loan)

No other loans

[Anonymous]

Yeah, then it looks like the error with TU is causing your total installment utilization to be 12.8% rather than 8.8%.

Bear in mind that disputing an error on a closed account can sometimes result in the creditor deleting the account completely from your report.  As RobertEG can explain, there's no legal recourse if they do that.  If that wouldn't bother you, then there's no risk in disputing it.  Otherwise you could try waiting another 40 days or so.

[Revelate]

Or just pay the Alliant loan down to $10 and take the double win without risking the dispute .

Best of both worlds imo going that route... I wish I had more accounts get stuck in an "open" state like that frankly, nothing but potentially goodness in the future with zero downside except maybe the payment showing up against a DTI calculation for a mortgage, but on that size loan, if that is pushing you over it's entirely possible you're spending too much on a house anyway haha.