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Topics addressed on July 9, 2008:
The meaning of “closed/current" and other account status descriptions
In the status category what does “closed/current” mean? If an account was closed it should be closed right? I just do not understand why some just say “closed” and others “closed/current.”
A “closed/current” status means exactly what it says. The account is closed, and it was current at the time it was closed. A status of “closed” with no other information means the same thing. On some credit reports I’ve also seen “closed/never late.” It is simply a matter of how the status was reported by the lender.
An account that was delinquent in the past will have a status statement of “closed/was ___ days delinquent,” describing the history of the account. The blank may be filled with a 30, 60, 90, 150, 120, or 180. Beyond that, an account is usually charged off as a loss and would be reported as such.
The account status line acts as a summary of the account history. It shows the current status – open, closed, paid, charged off – and often gives a brief statement of what happened in past – never late, was late ___ days.
“Closed” is considered a final status, meaning the account is no longer active. The term “closed” refers to revolving debts, such as credit cards. “Paid” is typically the final status associated with installment debts, such as car loans or mortgage loans.
You may also see “charged off” if the debt became delinquent and was never paid. The status line may then indicate that the account was sold or transferred to collections. A collection account then could appear on your credit report with a notation indicating from whom the debt was purchased or transferred.
Thanks for asking.
- The "Ask Experian" team