Originally Posted by
Chelski
inactivity wld be good standing. it wrong to think a closre shwng up in cr hist wont hv any NEG impct.
You can choose to disbelieve or argue but what your understanding is wrong primarily because you confuse / mix up the derogatory items with the account closed by issuers notation.
Only when you have other derogatory items on your reports, otherwise a notation of account closed by issuer has NO negative effect on your report. Repeat - if only shown account closed by issuer,
without any other derogatory items on the person's report there is absolutely no ill effect on your ability to obtain new credits whether it is cards or mortgage or auto loan.
Now, you should also NOT to confuse that the person can obtain new card from the SAME issuer who closed the accounts - some issuers would forgive after certain time has passed, some dont. BofA and Barclays dont. US bank and Chase may be. Citi forgives based on the nature of the previous traverse. Take your pick.
Before anybody asks, those information are given by folks who are affected when they seek advice, therefore not something made up or in one's perception but real life DPs.