When I look at the explanations for what factors are positively and negatively affecting my credit scores, there seem to be two factors that do both.
FICO explains that my relatively long credit history (nearly 20 years) is a positive factor affecting my score. In the same breath though, they say I have too many credit accounts and that this has a negative impact on my scores. The majority of the accounts that indicate my long credit history are old accounts that have been closed for over 10 years yet they still show up on my various reports.
If those old closed accounts are removed from my report, I loose my long credit history (positive factor) but I also reduce the number of accounts (negative factor) showing up on my report. Any thoughts on how the removal of these old accounts might affect my overall score? Thanks in advance..
I'd leave them be. We've started seeing this comment, and when many of the accounts are closed like yours, it doesn't make sense. The closed accounts will fall off anyway, once they have been closed for 10 years.
Are your scores high, as in 780's and above? Those with high scores have very few problems on their reports, so they often get silly feedback like this.
Message Edited by haulingthescoreup on 06-28-200801:18 PM
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit? FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Don't worry about the "too many accounts" flag. It's not even been established that FICO dings you for having "too many" accounts, whereas the value of account history and accounts paid as agreed is undisputed and substantial.
- - - - in a credit-scoring postnuclear Stone Age...
As long as you avoid opening new unneeded accounts I wouldn't worry about this flag at all. As hauling said your score is probably in an excellent range where FICO almost starts making things up to ding you for and when they do it is usually only for a few points.
Actually, my credit scores are in the very low 700's. I thought that perhaps getting those old accounts off my report might make for a quick upward bump in my score but it sounds like it might be more trouble than its worth.