effect on credit profile of payment deferment

Hello All,

I am a beginner and this is my first post so request and hope my slip-ups are excused.

I have lost my job but I was enrolled in a Credit Protector program with my credit card. That program allows to defer payment for 12 months in the event of job loss. So after 12 months I need to pay whatever amount I carry currently.

I carry a certain amount on that card. Now if I take advantage of the deferment program the bank informed me they will mark my account as closed by them. They said I won't be having late fees,finance charges and credit bureaus will not get negative reports about me so it looks fine but I was uncertain of the effects on the credit profile as I plan to apply for a short loan/another card in the future(about 4-5 months).

Can anybody explain how the credit profile gets impacted if your accounts are marked closed by the bank.

Thanks a lot.

[sweeps]

1. Closing an account -- particularly one with long, good history -- usually lowers your credit score.
2. Depending on your credit limit and balance on this account, your debt-to-credit ratio could go down which could hurt your credit score. (On the other hand there's a possibility it could go up.)
3. I've read in a few places that having the account closed by the lender is worse than having the account closed by the consumer, but I haven't been able to confiirm or deny that.

Thanks Sweepsplayer.

They told me once I can pay them back my account will be normal again.

I appreciate your advice.

[sweeps]

I wouldn't trust what a CC company rep says. I encourage you to pose your question at creditboards.com and see what they say.