26 May, 2009
Myth 5: Your Closed Accounts Should Read “Closed by Consumer,” or They Will Hurt Your Score
Posted by: Steve In: Credit Card Myths
The theory behind this myth is that lenders will see a closed account on your credit report and, if not informed otherwise, will assume that a disgusted creditor cut you off because you screwed up somehow.
Of course, as you know by now, many lenders never see your actual report. They’re just looking at your credit score, which couldn’t care less who closed a credit card. Fair Isaac figures that if a lender shuts down your account, it’s either for inactivity or because you defaulted. If you defaulted, that will be amply documented in the account’s history.
If it makes you feel better to contact the bureaus and ensure that accounts you closed are listed as “closed by consumer,” by all means do so. But it won’t make any difference to your credit score.
