Does DOFD only apply to accounts sent to an CA? For example if you have a loan on your CR that is paid in full but you had multiple late payments, will that account drop of 7 years from the first DOFD, 7 years from the last DOFD or 7 years from the closed date? I'm just a confused. I have a few accounts that have multiple lates but are now closed b/c I paid them off.
Closed accounts: Closed accounts are accounts that are no longer available for further use. Closed accounts may or may not have a zero balance. Closed accounts with delinquencies remain seven years from the date they are reported closed, whether closed by the creditor or by the consumer. Positive closed accounts remain 10 years.
Thanks yall. I still have one more querstion though. Would the accont still be considered a "good" account if it had multiple late payments but was current at the time it was paid off and closed? For example: we had some 30 day lates; 2 60 day lates; & one 90 day late on our mortgage dating back to 2006. We sold the house and paid off the mortgage in July of 2007. Would this account be considered good or bad? TIA
The account will be considered "negative" overall. However, having been restored to a current condition, that negative activity will have far less impact than an account that was closed, placed in collections and subsequently paid off.
Those late pays have the most impact on your score for the first 2 years and with the affect on your scores decrease gradually as time progresses, as long as you stay current on all your accounts.
