Quote:
Originally Posted by Perfectmax
Here is the problem: When you get a late payment the account transfers into the deliquency section of your credit report, which can never be reversed. If you keep that account open and have a balance, it will hold more weight (negatively effecting your score).
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Hedwig's good point aside, your theory is flawed. If you leave the account open, in 7 years the late will disappear, but the account will remain. If you close the account, it will either be deleted or moved to the positive accounts section - dependent upon the mood of the CRA's on the day the late expires.
Further, if an account is open, active, and doesn't become late again, you can *sometimes* at a later point, get a good will adjustment, in that the creditor might remove the late since you are a good customer. They aren't going to do jack for you once the account is closed.