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Message
Account closed by credit grantor
Posted on 2/21/13 at 1:04 pm
Posted on 2/21/13 at 1:04 pm
I have a credit card account that was closed by Chase because I fell behind on some payments. I've been making big strides to pay it off. After I pay it off, how will it affect my score? Will it possibly lower because of decreased revolving credit? Any help would be appreciated.
4
Posted on 2/21/13 at 1:12 pm to TigerDent
It's going to fall because of missed payments more than anything
Posted on 2/21/13 at 1:14 pm to BACONisMEATcandy
Does it still count towards revolving credit as it stands now?
Posted on 2/21/13 at 1:20 pm to TigerDent
Probably not... It's most likely been sent to a collection company
Posted on 2/21/13 at 2:52 pm to TigerDent
quote:
Will it possibly lower because of decreased revolving credit?
That is the last thing you should worry about. Yes, that will probably make it fall a little bit but the fact that you were behind on payments has vastly more impact. It's like being worried about running a stop sign while the officer is writing you up for DWI.
Unfortunately the damage is probably mostly done at this point. Time will make it fall off the report but it'll be a few years before you see much improvement.
ETA: FWIW, there's nothing you can do about it anyway since the account is now closed.
This post was edited on 2/21/13 at 6:22 pm
Posted on 2/21/13 at 4:27 pm to TigerDent
quote:
After I pay it off, how will it affect my score?
Nada.
Since the account is closed, paying it off doesn't improve your debt to credit ratio since you no longer have credit with Chase.
Your credit score will not improve for 7 years (from this infraction) which is how long it will take for the missed payment dings (30/60/90 late payments) to drop from your credit report.
This post was edited on 2/21/13 at 4:29 pm
Posted on 2/21/13 at 6:01 pm to Captain Ron
What would y'all say (after having paid it off) are the chances of it being reopened? I had a ~8000 balance that I have paid off in six months.
Posted on 2/21/13 at 6:10 pm to TigerDent
None.
When they close it it means they have written you off as a viable debtor.
It will be a while before you can open another line of credit with chase.
Do whatever you can to prevent it from being charged off.
When they close it it means they have written you off as a viable debtor.
It will be a while before you can open another line of credit with chase.
Do whatever you can to prevent it from being charged off.
Posted on 2/21/13 at 6:16 pm to TigerDent
quote:
What would y'all say (after having paid it off) are the chances of it being reopened? I had a ~8000 balance that I have paid off in six months.
First, good job on paying it off.
*edited re-read whole OP:
No, if Chase closed the account, they are done lending to you for a long time.
But seriously, even if you did get it reopened, you're gonna hate the interest rate you'll get.
I wouldn't reopen the account. And going through the hell of paying off a collections agency should be enough to make you want to stay away from all credit cards for awhile.
Paying off the debt was the best, and only thing, you could do to correct this mistake. For now, you can only make your situation worse by applying for more credit.
This post was edited on 2/21/13 at 6:21 pm
Posted on 2/21/13 at 6:18 pm to Captain Ron
quote:
Your credit score will not improve for 7 years
This is absolutely wrong. To the OP, try to work out a payment plan with them.
Posted on 2/21/13 at 6:19 pm to TigerDent
Unfortunately, somewhere between slim and none. If you do get to open something the terms will not be good.
It's better to pay off than to simply let it go, but simply being behind even if you catch up later will still translate to a big hit on your credit score.
Really all you can do is wait for time to make it fall off your report. In the meantime you will probably be deluged with "credit repair" offers and "consolidation loan" offers for large up-front fees and outrageous rates. Don't touch them.
It's possible you can work something out with the creditor to lessen the trouble but don't expect it to spring back to normal.
It's better to pay off than to simply let it go, but simply being behind even if you catch up later will still translate to a big hit on your credit score.
Really all you can do is wait for time to make it fall off your report. In the meantime you will probably be deluged with "credit repair" offers and "consolidation loan" offers for large up-front fees and outrageous rates. Don't touch them.
It's possible you can work something out with the creditor to lessen the trouble but don't expect it to spring back to normal.
This post was edited on 2/21/13 at 6:21 pm
Posted on 2/21/13 at 6:27 pm to Captain Ron
quote:
Your credit score will not improve for 7 years (from this infraction)
Not true, the infraction will be on his credit report for 7 years.
The score can improve long before this infraction is removed, as long as he doesn't have any more infractions in the meantime.
Probably will see it start to crawl back up after as little as 2 years, not dramatically though for at least 4.
Posted on 2/21/13 at 6:30 pm to foshizzle
quote:
In the meantime you will probably be deluged with "credit repair" offers and "consolidation loan" offers for large up-front fees and outrageous rates. Don't touch them.
^^^ THIS IS SOLID GOLD ADVICE, for the love of God, don't get involved with those snakes, they bite.
Posted on 2/21/13 at 6:34 pm to Vols&Shaft83
Thanks for the advice. I fell behind while in dental school on some cc bills and also had a medical issue happen which caused me to run up some medical bills. Student loan money only took me so far. Since I've been out I've been doing nothing but paying off CC bills and other bad debt. Credit score has gone up a little, but I know it's just going to take time.
Posted on 2/21/13 at 6:38 pm to Vols&Shaft83
quote:
for the love of God, don't get involved with those snakes, they bite.
Snakes have nothing on some of these operators.
Just wait awhile. If nothing else bad happens then the score will probably start creeping back up again after a few years and eventually after seven you can require the derogatory record to be removed and then you're golden.
Posted on 2/21/13 at 6:44 pm to foshizzle
quote:
Snakes have nothing on some of these operators.
Oh, I know, they're right up there with the Payday Lenders and 99% of "Tax Relief" law firms.
I'm amazed these people aren't thrown in jail for this shite.
Posted on 2/21/13 at 8:09 pm to TigerDent
quote:
I have a credit card account that was closed by Chase because I fell behind on some payments. I've been making big strides to pay it off. After I pay it off, how will it affect my score? Will it possibly lower because of decreased revolving credit? Any help would be appreciated.
Pull your credit report and look at that trade line. If there is a credit limit listed in the trade line and if there is a balance, even if the trade line is closed and charged off, it is factored into utilization. In that case, paying it down will RAISE your score because you lowered your utilization. What you need to do is send Chase a "goodwill letter" once you pay it off. Many people have had success good willing Chase's credit card division. Google "Chase credit card chargeoff goodwill" and go from there. Good luck.
I just reread your post and realized you said it was closed, not charged off. That's not as bad as a charge off. Write them a goodwill letter asking to remove the late payments or delete the trade line completely. You can find a sample goodwill letter online and add your personal story and information to make it your own. I know someone who emailed Jamie Dimon (Chase CEO) and got a call from someone who helped him get derogatory information off his report. You can find his email address online too.
This post was edited on 2/21/13 at 8:47 pm
Posted on 2/21/13 at 11:16 pm to JonTheTigerFan
quote:
it was closed, not charged off. That's not as bad as a charge off.
True.
quote:
Write them a goodwill letter asking to remove the late payments or delete the trade line completely.
It definitely does not hurt to try, especially if the bills are paid in full.
I still think it will be at least 2-4 years in purgatory but this will pass. If our OP is a dental school graduate he should be fine, it'll just take a little time. Starting a practice may be a bit rough though, that may be the biggest obstacle if you can't get a business loan on reasonable terms.
This post was edited on 2/21/13 at 11:21 pm
Posted on 2/21/13 at 11:53 pm to foshizzle
If it was specifically a student loan from Chase and it says "student loan" on the bureau then it won't be viewed as bad as a car or house loan that is in collections / payment plan. If I was looking at an applicant (was a commercial loan officer before going back to school) and they had an account that was in collections or payment plan, I'd write off that applicant or guarantor right then and there. Next time pay your bills on time.
Posted on 2/22/13 at 1:19 am to wpsnickers
He said it was credit card debt. Just because the guy hit a hard spell doesn't mean he's a piece of shite who won't pay his bills. If his middle score is 620 and hasn't had any late payments in the past year, he would have no problem getting a mortgage right now. Most lenders look more closely at your last 2 years and will be forgiving of a one off situation where the person falls on tough times. The OP could very well get this removed from his credit report by Chase if this was an isolated event where he was a good customer otherwise. He will be fine and his credit score will recover. Derogatory marks lose their weight over time. It won't hit him hard all the way until it hits the 7 year mark and falls off his report on its own.
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