Closed accounts

What are the closed accounts on the credit report and what are they used for?

posted

close a/c's are usually credit cards where the company closed them either by your request or due to inactivity. could also be paid off mortgages or other loans

credit card — it’s what can give you a long credit history so if closed they can shorten your credit history

length of credit history is part of formula for determining credit score

so when an older account (like mortgage or student loan) falls off your report, your score could drop since you’re losing the credit history that comes with that account.