lets say you have a Sterns department store card and they went out of business since they converted to Macy's. How would that Sterns account be reflected on the credit reports?
I'm guessing they would update the new name, and if they assigned you a new account number, update that. They could also show the old account as closed out and insert a new tradeline reflecting the new account. I am guessing they will just update the information though.
One of my HOUSEHOLD accounts was SOLD to FLEET...the HOUSEHOLD account disappeared and it showed up as FLEET. On the other hand I had other "SOLD" cards show up as "TRANSFERRED/SOLD"
If they have ANY outstanding customers that owe them money on the LAST day...they would have to sell the PORTFOLIO to somebody...
wouldnt that be negative though and unfair to the consumer if its listed as closed by credit grantor?
If the account is not one of your more "aged" accounts, you could just dispute it as, "closed by consumer", and one of two things could happen. Either the CRA could just change it to "closed by consumer" or, they could just delete the tradeline. Now is it's a tradeline with derogs, that would be a good thing (deleting that is), and in all probability they'd just change the statement to "closed by consumer", however if it's a positive tradeline of yours, they may just get lazy and delete it. And like I said, if it's one of your older aged accounts, it could slightly hurt your score.
ohhh, the card I had was a computer city card and they went out of business about 4 years ago but I still have the card in my drawer. The account was opened when I made my 1st purchase there which was about 4-5 years ago. It wouldnt be considered an aged account anyways. So it really wouldnt matter or make a big deal if it was listed as closed by consumer or closed by grantor, right? This dead account would be knocked off the reports when the 7th year comes along right?
If you were never late, it would stay on your reports for 10 years, not 7. If you only used the card once, and they haven't continually updated the account to the CRA's, then it probably is not considered one of your more "aged" accounts. I believe "closed by creditor" would only affect you if you went through manual review. Not sure if scoring would pick up on it. And even if you did go through manual review, you could always easily explain it. "Closed by consumer" just looks better, but with a company closing down, the other statement, like I said, shouldn't keep you from getting a c.c., loan, etc, if you already qualify.
this card was opened and was used 0 times. I used my citibank visa when I made the 1st purchase but the salesperson offered me an application for their card so I applied.
