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reignbeau

why does a company close an account even if the creditor paid the account off

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My husband's credit score is at 645. There are 3 department store cards, Amazon, FFO, Care credit, Child support,  and 2 First Premier credit cards.

My question is, why is his score at 645 when EVERY card is paid off except one of the First Premier cards (he owes about 80.00) and he owes FFO about the same.

Is it because he and/or his creditors closed almost all of these accounts after they were paid off?

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It's not easy to say without knowing more info....late pays harm your credit score.  Hard pulls affect it as well.  If those accounts are paid off but had fallen behind, his score will ne lower than if they were paid off but never late, as an example.  Your score is not only about how much debt you're carrying that's still unpaid, it's also about how you have handled credit.  If he has accounts that show as delinquent, that would also contribute to the score.  There are other factors as well--credit usage, types of accounts, length of credit history, and so on, that all play a part.  Having very few accounts open actually does not always help your score.  Credit companies want to know that you can use credit and use it responsibly.  If your report shows that you had several accounts that went delinquent, and are now mostly closed, for example, they are likely to consider you to be a risk for new credit because you need to show that you can responsibly maintain credit accounts.  Maintaining open accounts in good standing will help this.  

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