Your credit report contains various information about your credit card accounts, including the status of each account. In closed accounts, your credit report may contain a comment that shows who closed the account, especially “account closed by the creditor” if the credit card issuer closed your account.
For example, your credit card company may close your account if you become too irregular in your payments, allow the account to be inactive for an extended period, or the creditor no longer issues that card.
Except in the event of a criminal offense, your credit report will not show the reason why the credit card issuer closed the account, except that it closed the creditor.
The note “account closed by creditors” or that the creditor closed your account does not hurt your credit score. A comment like this is not triggered by calculating points.
Closing a credit card, either by you or your creditors, can hurt your credit score. For example, a credit score may be affected by a closed credit card if you have a credit card or have high balances on all other credit cards, and it is the only card with significant credit available. You can minimize the impact on your credit score by paying off your closed credit card balance, even if you have to pay it over a period of time.
If your credit card company has closed your account due to a delay or serious reinstallation, those delinquencies will affect your credit score.
These delays will remain on your credit report for seven years, but will hurt your credit score less as time goes on and as you add positive information to your credit report. Accounts that are closed in good standing remain on your credit report for ten years or at any time set by the credit bureau to report positive, closed accounts.
Although your credit card account is closed, it will remain on your credit report. If you are still making payments on your balance, your payment history – and the timeliness of your payments – will also be reported. It’s important to keep at least a minimum payment on time every month, even after your account is closed, to protect your credit score. Late payments will hurt your credit score as if your credit card is still open.
If you have an account reported as closed and still open, contact your credit card company to find out why. Or, if the accounts say that the creditor has closed it even though you are the one who closed it, you can use the credit report dispute process to update the credit report to show that. Remember, however, this does not harm your credit score in any way, whether you or your credit card company has closed your account.