Last week I got a terrific question from a Minter about remedying a mistake on a credit report. Her scenario had a lot meat on the bone that it necessitated an article.
Normally when individuals grumble about credit report mistakes they are concentrating on derogatory information.
However, this concern has absolutely nothing to do with negative info.
“A couple years ago I paid off among my credit cards and canceled that card. I presumed this would eventually show up on my credit report as “Closed’ the way my other cards had. However, when just recently exploring my credit record, I saw that it’s still appearing as ‘Active’ on all 3 of my credit reports … and I’ve no concept what to do!
I attempted to contact the issuing business (Citibank) and they couldn’t find a record of my card since it’s been so long and I don’t have the account number any longer.
How do I proceed? Do I need to take it up with each credit report agency independently? Exists a standard process for contesting this? I certainly want it appearing as Shut since my existing credit score is being negatively impacted because I’ve too much available credit.’
The Credit Dispute Process
If the account is, in fact, closed then it’s to appear as being closed on her credit records.
And, due to the fact that it has not already been updated to reveal as being closed she’s going to need to go with the credit record disagreement procedure to have it updated.
If the charge card issuer still had a record of the account easily offered in their systems she’d NOT need to go to all three of credit bureaus straight since she can submit her disagreement directly with her credit card issuer, which then needs to fix ALL of the credit reports.
However, it appears that the issuer hasn’t record of the account any longer so she’ll need to go to each of the credit bureaus (assuming it’s showing up incorrectly at all 3) and file disagreements directly with them.
She can do this online (free of charge) by means of the credit bureau’s websites, which you can find at:
The Plot Thickens
Here’s a little twist to her circumstance …
If the creditor can not discover a record of the account then when the credit bureaus ask to examine it (by means of her disagreement) then the credit bureaus will have to eliminate it from her credit reports.
The credit bureaus aren’t allowed to keep details that isn’t verifiable.
Now, to the issue of her credit ratings being penalized due to the fact that of having “too much available credit.”
The 2 credit ratings that matter (FICO, VantageScore) actually reward you for having a large quantity of unused credit card credit line because it helps you keep a lower debt-to-credit limitation ratio, which I have blogged about right here, and here, and below, and here.
In reality, if you take a look at the elements that influence the FICO and VantageScore credit ratings, “Too much readily available credit” is not on the list.
So, I am uncertain exactly what rating type/brand you are taking a look at but I would not get extremely concerned about having too much readily available credit.
It’s not the potential for getting into financial obligation that matters … it’s whether or not you are actually in financial obligation and exactly how you handle the debt that matters.
The Real Concern
What you should be worried about is your ratings going down after the account is A) updated to reveal closed or B) removed from your credit reports.
If the account had actually a respectable sized credit limit AND you are carrying balances on other charge card then your scores can go down because your financial obligation to limit ratio will go up when it reveals as being closed or is removed.
And, if the account is eliminated from your credit reports AND it was an old account you’ll lose the value of the age of the card in your credit ratings.
The Bottom Line
You are right to wish to have a 100 % accurate credit record, and you’re worthy of one. But, closing a credit card is among the impactful actions you can take relative to your credit ratings.
So, if your scores are currently good … I ‘d think of letting sleeping dogs lie.