Originally Posted by
Happy
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.
Correct. A good example of this that is relevant to many on here was when the Citi got the Costco card portfolio in June 2016. The AmEx cards were closed by the issuer as the portfolio was "purchased by another lender". The reason for the account closure has no bearing on your report.