A closed credit card account will show up on your credit report as either "Closed by Consumer" or "Closed by Creditor". The words may not be exactly the same, but a close variation should easily be found on your credit reports. So, which one of these notations packs more of a punch when it comes to hurting your credit scores?
While closed credit card accounts generally have a negative effect on your overall credit score, it actually doesn't make a difference whether your creditor shut down the line or you requested the closure yourself.
According to Ron Griffin, a former director at Experian, "which party closed the account has no bearing on a credit score." However, don't forget that lenders may express concern when they take a closer look at your credit reports and find several accounts closed by creditors. They prefer to see accounts closed by you, not your credit card company.
While closed credit card accounts generally have a negative effect on your overall credit score, it actually doesn't make a difference whether your creditor shut down the line or you requested the closure yourself.
According to Ron Griffin, a former director at Experian, "which party closed the account has no bearing on a credit score." However, don't forget that lenders may express concern when they take a closer look at your credit reports and find several accounts closed by creditors. They prefer to see accounts closed by you, not your credit card company.
