I have a technical question regarding closed accounts. After closing an account, is the information still on your credit reports because that's the way CRAs operate (7 years for neg./10 years for pos.), or is it because OCs continuously report all accounts? Any success stories of folks that disputed an old account that turned out to have no record at the OC (removal)?
It varies from OC to OC - there is usually a last report date that will let you know if it is continually being reported. If its a positive account why would you want to dispute it?
I agree. I must not be referring to a positive account! Besides, from what I've read, closed positive accounts have no effect on FICO.
I am not sure that closed accounts have no effect. Here is what FairIssacs says: http://www.myfico.com/CreditEducation/WhatsInYourScore.aspx
I've learned to leave it be I wouldn't knock 'em so. With regard to the length of one's credit history (a big factor in FICO score calculation), a particular closed account could be the positive linchpin of a CR. A for instance: My oldest tradeline is a Radio Shack account opened back in 1988. Long since closed now, if I were to request deletion of this tradeline, my FICO score would suffer greatly. Reason being: My next oldest tradeline picks up in 1998--ten years later! My credit-history length could potentially be 8 years vs. 18 years were I to lose this closed account. About five years ago when I was caught up in a frenzy of credit mending, I spoke with a rep. from one of the credit bureaus. I had asked them to delete a tradeline that I imagined would reflect negatively on my account (one of those "closed by credit grantor" entries, though the account was paid in full), and the rep. responded with a "what for??? It'll reduce your score..." proviso. If it aint broke...
Closed positives (and negatives) do have an effect. In particular, closed positives have an effect on the average age and total history of your account. That said, open accounts have more weight; I lost 20 FICO points for paying off my car loan (one of my oldest open accounts); most people report a slight score increase. I expect to see another drop when my Orchard card reports as closed, but I'm not pulling FICO until it does (should be coming around on the guitar any moment).
