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Can Closed TL Report Late?


macboy
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I have a line of credit that has been closed by the credit grantor like a year ago. However it has a balance so I've been paying on it to avoid C/O.

Can this be reported Late considering it is closed? How can it be late? If I stop paying on it is their only recourse to charge it off (not that this is a good thing).

The reason I ask is because I keep paying this $10k line when it does me no good to keep paying because I doubt it makes any improvements to my credit considering it is a "closed" account. Do I have leverage to tell them to either re-open (so I can get credit for my payments) or I won't pay it.

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Yes, they are able to report late if you aren't making the minimum credit. The account being closed only means you can't make purchases against it, by the credit grantor request, and is negative. IMO, I would continue making, at least, the minimum payment. I sounds like you are in default and if they like, they could accelerate the payment and make it all due now. If you keep making good payments they might be willing to open it back up at a later date.

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