Can a Closed Account on My Credit Report be Reopened?

Closed accounts can decrease your credit age, which can drop your credit score. If an account is still active, follow these steps to avoid credit damage.

By Ashley Davison for Debt.com

Question: I have an auto loan with Ally about 3 years remaining. The loan is current and never late. I have great credit, FICO 777. All of a sudden the loan is showing ‘closed’ on all three reports. This dropped my scores some due to ratios but I know it will recover over a few months.

But my question is should I fight to get the loan shown back on my reports? It shows I paid off $16,000, but my fear is if they re-report the loan, then the algorithm will see it as a new loan and ding my credit even further. I will continue to make my payments on time. I just don’t want to do anything that will hurt my scores further. Advice?

– Hershel in Arkansas

Ashley Davison of Credit Saint responds…

Hi, Hershel, and thanks for your question.

You’re right that your score should recover in a few months. As long as you’re not planning on applying for any new loans or credit cards during…