I’m not going to lie, I love it when my networth goes up a month. I feel a great sense of pride whenever I see that happen and I like sharing it (even though sometimes, it can seem a bit “boastful”). But you know what? It’s just as important to share times where I messed up. Sometimes, I mess up really bad.
2 Delinquency Reports on my Credit Report
I finally got my credit report in February of this year, and I was pretty happy that I got a cool 767 credit rating. However, even though I got my rating, I didn’t really read everything – because if I did, I would have seen that on one credit card which I closed there were 2 reports of delinquency.
How did this happen?
I closed a credit card that I wasn’t using very much since I was having trouble keeping track of my cards. What I didn’t realize was that even after a credit card is closed, pre-authorized payment will still go through.
I have my credit card statements sent to my parent’s home and I rely on my online banking to keep me up to date. Usually I don’t open the paper statements since I can see it all online. Or so I thought. It turns out that when I closed my account, they closed my online account so I couldn’t see what was going on in my account. I assumed that nothing was going on.
Fast forward several months, and I randomly open a statement – I was in shock that my measly cellphone bill had been racking up interest – and was UNPAID. I called TD to figure out why a payment still went through even after the card was closed and learned my important lesson. I paid off the balance, and kinda hoped it would go away.
Really dumb, right?
Trying to Fix it
I called TD and tried to explain what happened. I also pleaded my case that I have always paid my bills on time, and this was a one-time occurrence with a payment that went through after I closed my card. Their argument was that it wasn’t their fault since they had sent me my statements even though my online account was never updated. They refused to do anything.
This happened in 2010, and will be on my record until 2016 (6 years). Live and learn, I guess. Now I am super careful to make sure to update to check the balance is paid off on all my cards, even after a few months of having them closed.
Readers, have you ever done something this stupid? Did you know that pre-authorized payments still go through a credit card even after you close it?