Aarons Lease Reported To Experian

[Anonymous]

I have been rebuilding my credit since January 2017 & I am still very new - I just found something new on my report.

I was surprised to find a recently closed Aarons account on my report. I just paid off my laptop from Aarons Rent-to-own 4 days ago. I was not expecting them to report the account to the credit agencies, but they did. I'm not even sure if it will show up on my EF & TU.

This the 1st and only lease agreement on any of my reports. So I'm curious to know the effect will have.

THIS IS WHAT MY REPORT SAYS

It has been reported as a 12 month Lease & under credit it says $900. It does not have any payments reported. It also has the account open date 5/2016 and Status "Paid, Closed/Never late. It only has 1 month of entry as CLS that was entered 4/2017

QUESTIONS PLEASE

Will this account be figured into my account age?

What type of account does this fall under? Installment account?

Is it considered to be closed by me or closed by Aarons? Bad or Good?

Do banks see this as a positive or negative?

Should I expect some FICO points with this account?

ANY INFORMATION WILL BE APPRECIATED.

[rmduhon]

It does count in your AAoA, hubby has one reported to all 3 bureaus and a second one that is only on one report. That one is going on 14 years old so it might not be there much longer. Since it's paid it doesn't matter if it's closed by you or them. It has never been mentioned in any denial hubby has had so I don't think it's considered bad. As for points, it depends upon the rest of your reports.

[RobertEG]

When you created an account with them, did it specify set payments for a set period, or did it provide you an approved credit limit for which you then purchased the computer, resulting in monthly payments that had a changing min monthly payment due that was based on your remaining balance owed?

The first would be an installment account, and thus would not be included in your % util calculation.

The second would be a revolving credit account that would be included in your % util.

HOWEVER, whether it is installment of revolving only matters when a balance remains.

Once it is paid, as is your case, then if it is revolving, it is removed from your % util scoring.

It is thus academic at this point.

Yes, it will be included in your AAoA.  That may help or hurt your scoring dependent upon whether your AAoA without the account is greater or less than the age of the account.  However, AAoA is not a major scoring factor.

[Anonymous]

I had used Aarons 2-3 years ago leased to own some furniture and they never reported anything to any of my credit reports.

[Anonymous]

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@Anonymous wrote:

I have been rebuilding my credit since January 2017 & I am still very new - I just found something new on my report.

I was surprised to find a recently closed Aarons account on my report. I just paid off my laptop from Aarons Rent-to-own 4 days ago. I was not expecting them to report the account to the credit agencies, but they did. I'm not even sure if it will show up on my EF & TU.

This the 1st and only lease agreement on any of my reports. So I'm curious to know the effect will have.

THIS IS WHAT MY REPORT SAYS

It has been reported as a 12 month Lease & under credit it says $900. It does not have any payments reported. It also has the account open date 5/2016 and Status "Paid, Closed/Never late. It only has 1 month of entry as CLS that was entered 4/2017

QUESTIONS PLEASE

Will this account be figured into my account age?

What type of account does this fall under? Installment account?

Is it considered to be closed by me or closed by Aarons? Bad or Good?

Do banks see this as a positive or negative?

Should I expect some FICO points with this account?

ANY INFORMATION WILL BE APPRECIATED.

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Update On The Effects On The Aarons Account Being Reported

I just wanted to give an update to others that may be interested in this account.

According to Wallet Hub the same Aarons account was reported to my TU report. The account does NOT show a payment history, but is listed as a year old account that was paid in full with NO Bad Marks or derogatory. YAY!

It seems that the Aarons account has help my credit score in 2 ways - 

*The account counts as an account PAID / AS AGREED

*The account counts in my Average Account Age

I have been declined credit lines for average age of accounts (Too Many New Accounts) within the past 6months. This is because I have added 10 new revolving accounts in the past 4 months.

I have also been declined credit for not having enough positive closed accounts. (Too Few Accounts Paid As Agreed) in the past 6months. I only had 1 closed account on my TU report before the Aarons account was reported. Now I have 2 PAID AS AGREED ACCOUNTS on my TU report and 1 account showing on my other reports.

MY TRANSUNION SCORE RAISED 6 POINTS DUE TO THIS AARONS ACCOUNT BEING REPORTED

From what I have been reading - results will be different for everyone, depending on other factors in a report.

Im happy with this account being reported. So much so that I will probably go sign a new lease to own contract with Aarons. 

[rmduhon]

Too few accounts paid as agreed doesn't mean the account has to be closed, just paid as agreed. And by continuing to get Aaron's accounts (unless you need the merchandise) will keep lowering your AAoA. You might want to rethink this idea.

[Anonymous]

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@rmduhon wrote:
Too few accounts paid as agreed doesn't mean the account has to be closed, just paid as agreed. And by continuing to get Aaron's accounts (unless you need the merchandise) will keep lowering your AAoA. You might want to rethink this idea.

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Your comment mande me think about something.

So before the Aarons account was reported my average account age was 1yr 5m. So the new account actually lowered my average age, but not by much.

Since it was reported as a lease not a credit line them it should not have effected my utilization. Also as I have mention I opened 10 new revolving accounts in the past 4 months- which lowered by my previous 6yr average account age to 1 yr 5m. 

Before my new account spree _ I had no revolving accounts

All of my open accounts are showing Paid as Agreed with no lates on any of my new accounts. I have 1 collection on my report for $250 that was posted in January, but in the process of being deleted **Long irealavent story**

I also only have 1 closed account saying closed by creditor, but paid as agreed for an old credit card many years ago.

The Aarons account is my only lease anywhere on my report.

SO

Im kind of wondering what else may have been effected by this account - because it has to have had a positive effect on something else other than my average account age.

No payments were reported only that it was paid in full. So it shouldnt have counted as positive payment history.

It brought my average age down slightly, since my previous account age was 1yr 5m. So it should have actually lowered my score right?

It was Paid as Agreed, but I read then again so are all of my other accounts with eception of the 1 collection. 

Possibility

It is possible that I just didnt have enough accounts...

Im now showing 10 revolving accounts, 2 child support, 2 closed positive accounts and 1 collection ** The only change has been the Aarons account and it raised my score 6 points.

Is there another credit factor that I may have missed???

[rmduhon]

It could be that the addition of another positive account, even though it's closed, outweighed the AAoA hit. Is this an actual FICO score? And just a note, child support isn't calculated in your scores.

[Anonymous]

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@rmduhon wrote:
It could be that the addition of another positive account, even though it's closed, outweighed the AAoA hit. Is this an actual FICO score? And just a note, child support isn't calculated in your scores.

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I'll take anything positive.

About the credit score:

I have learned that I cant rely too much on my credit scores. I usually use the free monitoring services Credit Karma, Wallet Hub & creditwise. These services do factor in my child support accounts - because they all say I have a bunch of late payments. Other than my child support- I have NEVER had any late payments reported. 

BUT I found out that creditors don't count child support accounts. I found that the FICO score I get with my Walmart statement is almost 100pts higher than the score given to me by the monitoring services. I don't know why this is.

So I just keep up with the monitoring services to see updated information in my report and just look at the score for reference. 

The only score I really would consider to be accurate is the monthly score I get from my Walmart account. 

My most recent score was FICO 695 on Walmart account, but Wallet hub says that it way 597 at the time. They were supposed to both be for my TU account. 

I guess that's why they don't charge for monitoring.

I care more about what lenders see, so I go with my Walmart monthly FICO score. 

TIP FOR EVERYONE WITH A GAP OR WALMART STORE ACCOUNT

I found out that if you get denied a credit increase from Gap or Walmart - they send a letter with the your score at the time of the request and whatever details that they looked at. 

I keep getting:

DEROGATORY PUBLIC RECORD OR COLLECTION FILED

TOO FEW ACCOUNTS CURRENTLY PAID AS AGREED

NUMBER OF INQUIRIES WAS A FACTOR IN DETERMINING SCORE

Who knows.

The Aarons account may effect my Walmart score differently, but I wont find out for another 3 weeks.

But according to Wallet Hub it raised 6 points.

[Anonymous]

I just had a aarrons acct post and it bumped me up 7 points on tu 3 on ex and not on eq yet. Those are fico from this site.