Rebuilding Your Credit

[glendazamot]

Sorry this is a two part question.

1. Is it possible for a paid account from the original creditor ( that was past due) show a current status of 120 days past due but also show a 0 balance?


2. I have two accounts from Sallie Mae opened in 2002. They were past due as well but they were paid in full some time in 2005. They are still showing in my report with a 0 balance and a status of paid as agreed but still reporting that the account was 120 past due 4 times. I tried to dispute this deregatory information with the credit bureaus stating that it has been more than 7 years since 1st delinquency and should be removed. They responded stating that it is to stay in my credit report for 10 years so until 01/2015. Is this correct? How can they still report the 120 days past dues for 10 years? Or maybe I dont understand... Help?

[Shogun]

Ok... here's how I think this ought to work.  The account was never charged off, so then there would be no DOFD for the account to charge off from.  The lates would have been the neg. on your account.  They should have aged off individually 7 years from their respective dates and the account should have turned into a positive account and stay on for 10 years.  The current status is reporting incorrectly.  It should read  Paid/Closed.  

[CrazyDiamond]

I too have entries on my credit report like this. So, how do we fix something like this, especially when he already tried to dispute his derogatory information with the credit bureaus stating that it has been over 7 years and that apparently didn't do any good.  I'm afraid to dispute anything else on my report because it seems like it hurts me more than anything else.  I have one entry that I disputed and now all of a sudden the beginning date of the debt is like 2010 - which is absolutely not correct. 

[glendazamot]

I guess I will be disputing the one status of 120 days past due and maybe GW Sallie Mae to remove the 120 lates.

[RobertEG]

Current status reflects no history prior to its... current status.

While an account remains delinquent, it can continue to report a current status of, for example, 120 late.  The balance due does not necessarily denote its current delinquency status.... for example, a creditor could have a delinquent account and sell the debt, which requires them to report a balance of $0.  That does not mean there is no debt remaining on the account, or that it is no longer delinquent.  The issue is whether the debt was satisfied (paid).

When a delinquent account is brought back into good-standing, either by paying and keeping  the account open, or paying delinquent debt on a closed account, the current status then switches over to a payment, rather than delinquency, status.  When that occurs, the prior level of delinquent prior to its new paid status is retained under a separate code called your Payment Rating.  So your file shows its current status of paid, and additionally shows the prior 120 late status.  Its just a matter of which storage bin contains the info.

A paid, closed account will have a current status of paid, a current balance of $0, and if it had prior delinquencies, a payment rating that reflects the level of prior delinquency.

Info does not disappear based on payment.

Any prior monthly delinquency is prohibited, under FCRA 605(a)(5), from continued credit report inclusion after 7 years from its date of occurence of the delinquency.

If a prior delinquency remains after its statutory exclusion date, one of two things is wrong.  Either the creditor reported the incorrect date, in which case the CRA is not at fault, or else the CRA has failed to monitor the expiration of the 7 year period.