Which is the correct way of reporting and how does it affect credit score?
The Facts: I have a bunch (5 or 6 depending on the Bureau) of old Collection accounts. All are past Statute of Limitations in my State. Some are owned by a Junk Debt Buyer and some are not. One is reporting as “Closed” and the rest are reporting as “Open”. Which is correct?
I can make arguments both ways: Since I cannot be successfully sued for any of them, I could argue that under law they are closed. But, I still technically owe the money, so I could make the argument they are still Open. Obviously none are available for use any more, so once again I could argue they are all closed.
Does the Credit Score make a difference between the Open and Closed Collection accounts? If so, what is the difference between the two as far as credit scoring is concerned? Last month my biggest balance re-reported the TL as open, as they have been doing monthly for years and last month I took a 60 point hit. The balance on that one is $ 95K, the rest are much lower. Does that make a difference? They all age off my credit file this year.