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"Paid, Closed/Never Late" account status helps your credit standing

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Credit Advice

Topics addressed on July 8, 2009:

"Paid, Closed/Never Late" account status helps your credit standing

Dear Max,

My Experian credit report has some accounts that have "Status: Paid, Closed/Never Late" with "Status Details: this account is scheduled to continue on record until" with a date. Is this a good thing on my report, a bad thing, something I want to get taken off?

- RYE

Dear RYE,

The status indicating the account is paid, closed and never late is a positive thing to have in your credit report. That status indicates you managed the account very well, which shows lenders you are a good credit risk. You shouldn't want it to be deleted.

The "paid" status indicates the account is no longer open or active and will no longer be updated with payment information. Experian retains paid or closed accounts with no negative information associated with them for 10 years from the date they are reported paid or closed.

Doing so means the positive information will remain in your credit report longer than negative information, such as late payments, which remain typically remain for seven years.

Keeping the positive information longer than the negative information helps you rebuild a positive credit history if you've had any problems in the past. You also need some open, active accounts with low balances to fully demonstrate that you are continuing to manage credit well.

Thanks for asking.

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