WalletHub, Financial Company
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An account in good standing means that you are not late on any of your credit card or loan payments. This status indicates that the account holder has met the necessary requirements, such as making timely payments, adhering to terms and conditions, and maintaining a positive relationship with the financial institution.
Examples of Accounts in Good Standing
- Credit Accounts: A credit card account in good standing implies that the cardholder has been making payments on time, has not exceeded credit limits, and is not in violation of any terms outlined in the credit agreement.
- Bank Accounts: For a bank account, being in good standing generally means that the account is active, has a positive balance, and the account holder has not engaged in any prohibited activities.
Maintaining an account in good standing is important for various financial and business transactions, as it helps build a positive credit history, establishes trust with financial institutions, and ensures continued access to services and benefits associated with the account.
People also ask
What does a closed account on my credit report mean?
A closed account on your credit report is an account that is no longer active, meaning it was either closed upon your request or automatically closed by the creditor after a long period of inactivity.
Loans and refinanced loans are also regarded as accounts and they should appear as closed accounts after they are paid off. Information about closed accounts typically stays on your credit report for 10 years.
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read full answerWhat does credit standing mean?
A qualitative term that reflects where one's credit stands on a rating from "excellent" to "bad".
On the other hand, Credit Rating / Credit Score is a quantitative assessment of the strength of your credit: the higher your credit score, the higher your credit standing.
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The higher your credit standing, the easier it will be for you to borrow money. Paying bills on time and checking your credit report annually for errors or...
read full answerWhy was my account removed from my credit report?
Your account could have been removed from your credit report because 7-10 years have passed since the account was closed. Or, it’s possible that the creditor or credit bureau made a mistake.
Accounts closed in good standing remain on credit reports for 10 years after being closed. Closed accounts not in good standing stay for seven years from when the delinquency that led to the account’s closure first got reported to the credit bureaus. An...
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