MYFICO having a "current status" on a closed account

[Anonymous]

Hello! I was hoping I could pick your brains a little

My car loan was paid off in 2009 but I had 2 payments that were 30 days late prior to completely paying it. When I check my credit report on MYFICO, it's showing the current status as 30 days late. How is this possible if the account is closed? The description says that if an item has been paid upon as agreed, the status should reflect "paid as agreed." Would this be something I should dispute?

Thanks!!!

[llecs]

It's normal. As long as the 30 day lates report, then it would report that way. If the lates disappear, then the status would change.

IMO, I would GW if the age of the TL is younger than my AAoA (sometimes creditors will delete the entire account if you only request a late deletion). If the age is older, I wouldn't mess with it. Likely the lates aren't impacting your FICO that much, if at all.

[Anonymous]

Great, thanks for the info!!

[RobertEG]

It is incorrect, if reporting as the current status.

Current status is a snapshot, obviously, of the the current status of the account.  It is not a status code that reflects any historical memory.

When the current status changes, prior status' of items such as delinquencies are shifted to or retained by other codes. 

Current status is a hybrid code, initially reporting the current delinquency status of the account, but also reporting payment status.

For example, in your case, the account had a delinquency status of 30-late, and was then paid.  The current status prior to bringing the account back into paid, good-standing is overwritten.  The new current status is paid (or paying as agreed if still open).  The old status of the delinquency is shifted over to a code called the "Payment Rating," which retains the reported level of prior delinquency.  And the 30-late itself is still retained in the monthly Payment History Profile.

The creditor simply forgot/failed to update the current status when the account was paid and closed.  The current status should read "Paid."

An administrative oversight, but worth getting corrected, as one reviewing your CR will confusingly see that the account is currently delinquent when it is not.  It is not affecting your scoring, as the delinquency is still retained, but the status is incorrect.

I would not initially dispute on such an administrative matter, as a dispute will place an unnecessary dispute flag in your file until resolved, screwing up your scoring.  I would suggest making an informal call to the creditor, and ask them to simply update the correct current status to paid.  Give it a month or so.

Then, if they do not correct, impose a period for them to do so by filing a direct dispute.

[Roarmeister]

It probably means it was reporting a 30-days late within the last 6 years, not that it is currently 30-days late because obviously the account is closed.