Reader’s Question
My husband has three old credit cards from college that he racked up, then didn’t pay for years. A few years ago he started with a debt free counseling program that took a lump sum every month and paid each card a certain amount, with the agreement with the card issuers that he would not have fees or interest rate changes while on this program.
He was told that he has a zero credit limit on these cards, and once they are paid, they will be closed. We are receiving a good tax return this year, and plan to pay off the cards. What we really want to know, is what should we try to get them to mark the accounts as on his credit report to have a positive or least negative impact on his credit score? I’ve heard that we should ask for closed at consumer’s request. Is this good?
My Response
Closed at consumer’s request will work fine. The account history is what is really going to affect your credit score (as long as it’s not marked as a charge-off).
I don't have perfect credit (yet), but over the past couple of years I've gone from bad credit to great credit. I'm here to teach you how to improve your own credit.
{ 5 comments… read them below or add one }
No, your score isn’t affected!!
Your credit score may be affected if the account says closed by credit grantor and in a negative way. Should you wish to apply for credit in the future, the lender is going to look at that statement and wonder why was it closed. But the first reply is correct. The most recent two years payment history is the true test of credit scoring.
It’s probably already marked as negative, so closing it won’t do anymore harm
Which it is probably marked as a charge off or sent to collections. The damage has already been done I’m afraid. There’s not much else you can really do except get it paid off and get it behind you.
Exactly.