A couple of my friend's accounts were cancelled by AMEX because "they didn't like the way she was using her credit." There's still a balace and she's paying on time on all her accounts. What sort of harm, if at all, will an account cancelled by the creditor have on her credit?
There will be little effect on her credit; the notatin "account clode by grantor" has no effect on FICO scores. The payment history is the key item. What will impact is the loss of an "active account" on her report. She will lose some minor points for the "mix" of credit changing. The other effect is ten years down the road, when this account will stop reporting, and she will lose the history at that point.
Thanks. Since you brought up accounts that stop reporting. The only thing keeping my credit down at this point is a short credit history. I had a couple of auto loans that aren't showing anymore. When cleaning up my credit I might have mistakenly disputed some of the good ones off. I'm not sure. I had a good GMAC loan from 20 years ago and a Barnet (now BOA) from about 7 years ago. How would I get them to start reporting again? BTW my scores are presently over 780. Would a longer history even make a difference?
If your scores are > 780, then don't "fix what isn't broken". You could actually pull down your scores with these accounts reporting. Your scors of >780, combined w/"short history" mean you're being grouped with a shorter history group of individuals. Adding a 20 year history could throw your score into another "bucket", and hence drop it. Just keep up what you're doing, don't mess with success.
I think the only thing that's keeping me out of the 800's is a newly acquired 30k credit line, a new 50k car, a new 30k car that I bought six months ago and just paid off and about 12 inquiries in the past year. I take it the inquiries is the only thing I can try to remove without risk of lowering my score. A screen shot of my FICO is at http://spankthebank.org/links.htm As you can see my score has gone up pretty fast so I guess I should leave well enough alone like you say. But it gets to be addictive!
I understand the addiction, and the lure of the "800 goal". But to be honest, based upon your (supplied) information, I'm trying to figure out how you got to these scores(??). Right now you're in a great "bucket" for your FICO scoring, I would try disputing the inquiries, but nothing else. Don't be alarmed if in time you see your score drop, it's ironic but sometimes as the "data" improves, your score drops as you move into a "higher bucket".
