Are your scores affected negatively if an account that was in perfect condition was closed by the credit grantor rather than the consumer? Thanks!
The answer is not that clear cut. You also have to take into account how old the account is, and how it will affect your overall credit age. If you have an account with 10 years of good payment history and close it (assuming all other accounts are 3 years old or less), your score will go down regardless of who closed it. Disregarding the account's age, I'm not sure how much the score is affected depending on who closes it; however, it looks better to potential creditors when they pull your report and see *you* closed the account, as opposed to the account being closed by the creditor (which implies the creditor decided you were bad for business).
If the account is totally positive, meaning no lates and always paid on time, an account closed by creditor should not hurt your score per-say, but a manual review of your credit report by a loan officer or such could have them questioning you on why the creditor closed the account and not you. To which you could say they closed the account because I had it and never used it. You should always try and be the one to close an account as a general rule of thumb, it always looks better if you did the firing and not them. Kinda like this....You can't fire me, I quit!! LOL!! Tac
