What does account closed due to transfer mean?

A “Closed – Derogatory” mark on your credit report simply means the account in question defaulted and was closed as a result. In other words, it has charged off. This does not, however, mean the notation will soon come off your credit report. If accurate, such records will remain on your file for seven years.... read full answer

That’s one reason not to take the “closed aspect” of a closed derogatory too literally. Furthermore, if the debt in question hasn’t been paid, it could manifest itself as a collection account if the original lender sells it to a collection agency. The debt collector could also file a lawsuit to recoup amounts owed if the amount owed is large enough and you own enough assets to make legal action worthwhile for the creditor. Either option would result in another derogatory mark on your credit report, thus adding to the damage your credit score has already incurred.

The best course of action — after verifying the legitimacy of the closed derogatory account in question — is to try to satisfy your debt obligation by paying what you owe in full or negotiating an amended agreement with whoever now owns the debt. This will effectively stop the bleeding as far as your credit standing is concerned, and allow you to begin the rebuilding process.

In that respect, signing up for a free WalletHub account will help significantly. It will tell you exactly what steps you’ll need to take for your score to rebound as well as provide personalized grades on different aspects of your financial performance. You will also benefit from free daily credit score updates and an early fraud-warning system in the form of 24/7 credit monitoring.

Closed accounts stay on your credit report for 7 to 10 years, depending on whether the accounts are closed in good standing. When you close an account that is in good standing, with a positive payment history, you can expect the account to remain on your credit report for 10 years following the closing date.... read full answer

On the other hand, if you close an account with a history of delinquent payments without bringing the account current (or the lender closes it for you), it will remain on your credit report for 7 years. This period begins when your delinquency is first reported to the credit bureaus.

Finally, if you close an account with a history of late payments after bringing it to good standing, the account will remain on your credit report for 10 years from the closing date, but any late notices will fall off your credit report after 7 years from first delinquency.

You can read more in our guide about how long things stay on your credit report.

A closed account on your credit report is an account that is no longer active, meaning it was either closed upon your request or automatically closed by the creditor after a long period of inactivity.

Loans and refinanced loans are also regarded as accounts and they should appear as closed accounts after they are paid off. Information about closed accounts typically stays on your credit report for 10 years. ... read full answer

We have an article about what information on your credit report means here.