What are the ramifications of an account listing as "Open" when it is really closed? It is in good standing, with 10+ years of history. Do I request a status change, or is this more likely to backfire? On the one hand, it is a an old account, so it adds nicely to my credit age. On the other hand, it's one more revolving account, and myFico.com chastises me for having too many cc accounts. Thoughts? Thanks.
really its a catch 20 situation much like u said. Its positive to have the account stay on the report for years to build up the overall credit history age. However, having too many (guessing 10+ accounts) kicks FICO into saying "too many accounts, etc. too many balances, but remember an account for 5-10 years is excellent to boost your history, so that lenders have an indication of your financial life. Obviously, a consumer with several lates, chargeoffs, Consumers counseling, BK, etc indicates financial difficulites have occured and satistically it has a high risk of happening again, although i do not agree with the statiscal point of view.
Even if you get the status corrected, FICO sees open and closed revoloving accounts the same in regards to the "too many cards" code. A closed account will factor into this code for ten years after closing unless you dispute it off. It's most likely doing you more good than harm given its ten year history.
Hi Mire, The gang is right, I'd leave it. Disputing an account which is positive (or would be rendered positive if the appropriate corrections are made) has a strong tendency to get deleted. .
I'm going to chime in w/Butch here. If it ain't broke.. don't fix it. I got very annoyed about a slow balance update on TU for my Aspire card. I had paid it down and it was still showing a substantial balance. So I disputed the balance and POOF! It went away. A fine TL w/$5k CL, down to zero, that no longer shows up on TU. And if you think it's tough to get a bad TL deleted, try getting a good TL re-inserted. Especially if the company is barely in business.