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Regular Contributor
yellowcake
Posts: 134
Registered: ‎05-07-2011

Re: Can't Build AAOA When... Cards

I'm so glad I haven't closed my 2 oldest credit cards, both 8 years old. Even though it's a crappy card that I rarely ever use. I'm going to put small recurring bills like Netflix and myfico.com on them to keep them active.

 

Member
dzlqw4
Posts: 13
Registered: ‎06-07-2010

Re: Can't Build AAOA When... Cards

The more I learn the about this "stuff" the more I want to just crawl away a die. I really just don't get it...  This is very disappointing to learn.

Contributor
lexandra90
Posts: 95
Registered: ‎01-27-2013

Re: Can't Build AAOA When... Cards

so when do closed accounts actually fall off your report?.. 7 years from the date closed??



Equifax Fico 620 Transunion Fico 646 Experian Fico 638 (7/2014)
credit: VS $750| Bill Me Later $537| US Bank Visa Plat. $1,000| CapOne QS $3,500
Gardening until 1/2015 :smileyhappy:
Moderator
guiness56
Posts: 22,408
Registered: ‎01-17-2008

Re: Can't Build AAOA When... Cards

Closed accounts that only have late payments fall of 10 years from the date closed.  Each late will fall off 7 years from date of occurence.

 

Closed accounts in good standing fall off 10 years from date closed.

 

COs and collections are excluded at 7.5 years from DoFD.

Established Member
SCoach
Posts: 36
Registered: ‎04-08-2013

Re: Can't Build AAOA When... Cards

Why is this disappointing to learn?

Seems the prudent course of action is to open accounts only as needed, pay them on time, and keep them.  

I see on numerous forums people doing app sprees (which has to kill AAoA), closing accounts once they get the bonuses, etc.  All that churning is bound to hurt long term, but I guess people aren't worried about that.  People only seem to be looking for quick fixes and short term gains.

When I started rebuilding my credit back in 1998, these kinds of forums didn't exist.  I got two secured cards (still have one) and got a small Chase card.  The Chase turned into a Freedom and has been wonderful to hold for nearly 15 years now.  I've never done an app spree.  I applied for credit when needed and made sure itwas paid on time.  I think my credit was high 500's when I started and I should hit close to 800 by this Christmas.  I haven't closed an account in over 15 yeears and have no plans to do so at this point.

I guess the old adage holds true.  The people who banks are most willing to give money to, are the people who need it the least.

AmEx Platinum | AmEx Gold | AmEx Bluebird | CSP | Chase Freedom
Mega Contributor
RobertEG
Posts: 17,456
Registered: ‎03-19-2007

Re: Can't Build AAOA When... Cards

The supposed 10 year date for deletion of accounts is an administrative conconction of the CRAs simply as an internal measure to reduce the size of their massive databases.

It is not regulated under the FCRA, and thus has no specific statutory date.

 

The CRAs apparently base when they feel free to delete old accounts on their perception of their internal desire to purge old data vs the perceived needs of their custormers for continued view of the info.   While info is still in a file that has not reached its normal credit report exclusion date, they retain the account for view by their customers.

However, they apparently have determined that once an account has exceeded approx 10 years from closure, all of the normal CR exclusion periods have expired, and thus they can no longer show the adverse info in their reports.  Seven years begins the date of exclusion of some info, while 10 years governs the exclusion of most everything else.  Ergo, 7-10 years gets the subjective axe.

 

That ignores several subilties, and thus can sometimes deprive customers of relevant info.  Creditors are clearly their primary customers.  There are two types of adverse items that can exceed CR exclusion by more than 10 years.  One is a BK after account closure, and the other is an unpaid tax lien.  Creditors apparently have not squawked regarding the deletion of such info, so the CRAs have no reason not to simply delete.

 

Additionally, it totally ignores the impact on their secondary customers..... consumers.

Old accounts are golden in consumer scoring of oldest account and average age of accounts.

They apparently have little concern for that customer base.

 

Regular Contributor
yellowcake
Posts: 134
Registered: ‎05-07-2011

Re: Can't Build AAOA When... Cards


SCoach wrote:

Why is this disappointing to learn?

Seems the prudent course of action is to open accounts only as needed, pay them on time, and keep them.  

I see on numerous forums people doing app sprees (which has to kill AAoA), closing accounts once they get the bonuses, etc.  All that churning is bound to hurt long term, but I guess people aren't worried about that.  People only seem to be looking for quick fixes and short term gains.

When I started rebuilding my credit back in 1998, these kinds of forums didn't exist.  I got two secured cards (still have one) and got a small Chase card.  The Chase turned into a Freedom and has been wonderful to hold for nearly 15 years now.  I've never done an app spree.  I applied for credit when needed and made sure itwas paid on time.  I think my credit was high 500's when I started and I should hit close to 800 by this Christmas.  I haven't closed an account in over 15 yeears and have no plans to do so at this point.

I guess the old adage holds true.  The people who banks are most willing to give money to, are the people who need it the least.


If you have excellent credit, app sprees don't hurt you at all.  The key is to keep your oldest credit cards open to anchor your AAoA.

Established Member
SCoach
Posts: 36
Registered: ‎04-08-2013

Re: Can't Build AAOA When... Cards

Ok, good to know.

AmEx Platinum | AmEx Gold | AmEx Bluebird | CSP | Chase Freedom
Member
dzlqw4
Posts: 13
Registered: ‎06-07-2010

Re: Can't Build AAA When... Cards

My AAoA is 15.2 years.  I have three Sallie Mae loans that started in 1998.  I had a 90 past due on June 2006, on the three Sallie Mae Loans.  A few months later I was able to pay them off in full on Oct 2006.  Those three account were then closed on 2006 but have remained on my credit reports as negative marks since them.  I was hopeful that I would see a nice increase in my credit score when those 90 past due marks fall off this coming June 2013 as they are the only baddies I have left on my report.  After learning more about AAoA, now I am concerned the negative marks will fall off and Sallie Mae will close those trade lines which happen to be my oldest.  Seem this would really kill my AAoA as my next oldest trade lines are from 2006.  Is there anything I can do to preserve my AAoA? Will having my AAoA basically cut in half wipe out any credit score gains made by three 90 dues past dues falling off my report.  Thanks for any insight.


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