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Chapter 4. Credit Scoring Myths > Myth 8: Your Closed Accounts Should Read “Clo...

Myth 8: Your Closed Accounts Should Read “Closed By Consumer,” Or They Will Hurt Your Score

The theory behind this myth is that lenders will see a closed account on your credit report and, if not informed otherwise, will assume that a disgusted creditor cut you off because you screwed up somehow.

Of course, as you know by now, many lenders never see your actual report. They're just looking at your credit score, which couldn't care less who closed a credit card. Fair Isaac figures that if a lender shuts down your account, it's either for inactivity or because you defaulted. If you defaulted, that will be amply documented in the account's history.


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