Dec
22
2010

Defining “potentially negative, closed”

Dear Experian,

Does “potentially negative, closed” mean the account was paid?

- MLL

 

Dear MLL,

The statement appears to be from the account summaries provided on the first page or two of your personal credit report. It indicates that the account is closed but that it has negative history of some sort associated with it, probably late payments.

The term “closed” usually applies to revolving accounts, which is the technical term for credit cards. It means that the account can no longer be used to make charges. You should be able to see full details about the account in the main body of your credit report.

Details will include the current account status, which should be “closed,” along with a description of the payment history, for example “was 60 days late.”

The term “paid” is usually reported for the status of closed installment loans. It indicates that you have made the last payment and that no balance remains on the loan, so it is effectively closed.

Thanks for asking.

- The “Ask Experian” team

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