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 Posted: Wed Feb 01, 2006 10:28 pm Subject: Inactive Accounts and Accounts in Fair Credit Dispute |
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I have one account which I have not used since 1997. It says never late/inactive, paid in full as of 1997 and has a credit line of about $2,000. Even though I have not used this account is it good or bad for my credit? I have heard it's good because there is no negative reports but bad because it lists as credit I have and perhaps makes me look overextended?? Also I have two accounts on my Experian Credit report which says the following:
STATUS: NO STATUS
STATUS DETAILS: This item was verified on Feb 2005 and remained unchanged.
Then at the bottom it says:
Account in dispute under Fair Credit Billing Act
I disputed these accounts last Feb of 2005. Every other information area on these two accounts has N/A typed in, no amounts, dates or anything??? Somebody please explain this to me. 
Thanks!
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Terrell
SAHM and Scrapbook Kit Designer
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BrooklynGirlFlTrnsplnt
Joined: 27 Jan 2006
Posts: 65
Debtcc Points: 3727
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| Posted: Thu Feb 02, 2006 12:36 pm Subject: |
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Hi Terrell,
Whether closing an open or inactive account helps to rise credit score or not has been a controversial issue. Most of the time lenders do not like too many open accounts in your report. This may result in disposal of your loan application or getting it approved for a higher rate of interest. As per as credit scoring is concerned, few things to be considered before you take any decision.
Credit score is influenced by many factors and type of credit is one of those. Moreover, it does not exert so much effect on your score as payment history does. By closing an open account you are reducing your available balance and sometimes life of your credit report also. It might hurt your score.
Since this account does not have any negative background and if this is the only inactive account in your report you can keep it as it is. You can use this card in a planned way also to rise your score. If you start using it and pay the balance on time, it will boost your score.
I would also suggest you to read this E-book written by Debt Samaritans. It will help you reveal the secrets of credit scoring models:
http://www.debtconsolidationcare.com/books/credit-score.pdf
| Quote: | STATUS: NO STATUS
STATUS DETAILS: This item was verified on Feb 2005 and remained unchanged.
Then at the bottom it says:
Account in dispute under Fair Credit Billing Act |
Did you ever dispute any item with Experian under Fair Credit Billing Act? It seems that you did and they verified it. If verification was complete then the last statement really does not make any sense. You can dispute it with them. But I don't think that this statement is a negative one, hence cannot upset your score.
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4ubryan
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Joined: 28 Apr 2005
Posts: 890
Debtcc Points: 20497
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| Posted: Thu Sep 25, 2008 2:07 pm Subject: A Delinquent Account |
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When can collections still be done on an inactive account? I have an account with a utility company from 2004 and 2005 that they are now harassing me for now, and are unable to provide me any type of statement on the charges in place.
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