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Valued Contributor
Duncanrr
Posts: 2,857
Registered: ‎06-08-2012
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Closed accounts stay on for 10 years, correct?

I have a ton of Student loans that I consolidated in June 2004 (14 accounts).  Some of these accounts were opened back in 1993.  These 14 accounts were merged into 2 accounts in July 2004.  So when June 2014 comes (1.5 years from now), I can expect all these positive accounts to drop off my report?

 

I expect this to kill my AAoA.  Right now have 26 accounts reporting with an AAoA of 10.1 years.  Fortunately, I'll have some AMEX backdating to 1993 to help a bit but how much of a hit could I expect?  Should I adjust my strategy now to take this into account? (I know its a ways off but I rather have a plan in place to address it now rather than later.)

 

Duncan



Starting Score: EQ 551 TU 548 CK 607on 6/8/12, EX 542(AMEX pull 3/4/12)
Current Score: EQ 710 TU 727 EX 704 CK 719(FAKO-EX 697, EQ 697, TU 697)
Goal Score: 750

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igids1
Posts: 191
Registered: ‎07-05-2012
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Re: Closed accounts stay on for 10 years, correct?

It's impossible to say. Especially not knowing what else is on your credit report. Based on your scores you have posted, I am going to assume you have some negative information as well. Yes, your AAoA will drop, but all your other accounts are going to be aged 1.5 additional years from now. 10 year old accounts have been dropping off on me lately, it kinda stinks.

 

Credit history counts for 15% of your score. So, the most you can get out of that is around 65 points or so. You might still be looking at an AAoA of around 8 years when the student loans finally come off. You will go from like 12-8. You will still get alot of points with AAoA of 8 years, and some of your baddies might come off, or count less. 

Valued Contributor
Duncanrr
Posts: 2,857
Registered: ‎06-08-2012
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Re: Closed accounts stay on for 10 years, correct?

[ Edited ]

igids1 wrote:

It's impossible to say. Especially not knowing what else is on your credit report. Based on your scores you have posted, I am going to assume you have some negative information as well. Yes, your AAoA will drop, but all your other accounts are going to be aged 1.5 additional years from now. 10 year old accounts have been dropping off on me lately, it kinda stinks.

 

Credit history counts for 15% of your score. So, the most you can get out of that is around 65 points or so. You might still be looking at an AAoA of around 8 years when the student loans finally come off. You will go from like 12-8. You will still get a lot of points with AAoA of 8 years, and some of your baddies might come off, or count less. 


I have 1x30 day late on account from Dec 2010

1x90 day late on different account from Nov 2007 (when this drops in Nov 2014 I'll probably gain most back from what I lost with AAoA)

1 paid CO (Verizon) from July 2009 for $109 (will be 5 years old around time that this happens so it shouldn't be hurting scores too much by 2014)

and Crap1 Auto (mess) worst late 60 days, last late March 2012.

 

 

As long as I can keep scores around 750 I'll be happy (Ive targeted June 2014 as my target date to reach my goal of 750.  It will be 2 year anniversary of this rebuild)

 



Starting Score: EQ 551 TU 548 CK 607on 6/8/12, EX 542(AMEX pull 3/4/12)
Current Score: EQ 710 TU 727 EX 704 CK 719(FAKO-EX 697, EQ 697, TU 697)
Goal Score: 750

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Shogun
Posts: 12,952
Registered: ‎04-15-2011
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Re: Closed accounts stay on for 10 years, correct?

Yes generally speaking postive accounts stay on for 10 years, however I have a car loan that's on my EQ that's been paid off since 1999.  I'm just leaving it alone.


Starting Score: 504

July 2013 score: EQ FICO 819, TU08 778, EX "806 lender pull 07/26/2013
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Elcid89
Posts: 567
Registered: ‎10-04-2012
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Re: Closed accounts stay on for 10 years, correct?


Shogun wrote:

Yes generally speaking postive accounts stay on for 10 years, however I have a car loan that's on my EQ that's been paid off since 1999.  I'm just leaving it alone.


Ditto. I have a paid and closed auto loan from BMW (paid off in 1994) that, for reasons passing understanding, remains on my EQ report. Far be it from me to call their attention to it.

FICO 04 scores: 809 (EQ) 812 (EX) 818 (TU)

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Chase Sapphire Preferred $62k - Merrill Lynch + Signature $41k - USAA Rate Advantage $28k
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Valued Contributor
madmann26
Posts: 1,443
Registered: ‎08-30-2012
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Re: Closed accounts stay on for 10 years, correct?

I've got one account that only reports to TU making the length of my credit file 18+ years though I forget the AAoA on my TU. I think it's kinda wild.


Starting Score: EQ 511 TU 552 EX 545 8/29/2012
Current Score: TU 705|EQ 690|EXP 698 (FICO)
What's in my wallet? Cap1 PLAT AU $1.25k; Cap1 Cash AU $2k; NFCU Siggy $23k; $4k WalMart DC; CFNA Firestone $2.2k; Amazon $2.1k; NFCU Cash Rewards $22K; AMEX BCE $18k; NavCheck $15k; Lowe's $10k; Citi DP $6.3k; AMEX ED $8.5k; Chase Freedom $4.5k
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Regular Contributor
sbeasl11
Posts: 122
Registered: ‎07-23-2012
0

Re: Closed accounts stay on for 10 years, correct?

I have one old positive account that is 24 years. It is only on one CRA, but I am happy it is still on there helping my AAoA

Mega Contributor
RobertEG
Posts: 18,215
Registered: ‎03-19-2007
0

Re: Closed accounts stay on for 10 years, correct?

Deletion of old info from your credit file is not covered under the FCRA, and is done by the CRAs solely at their convenience and discretion.

It seems that the primary consideration on their part is whether the account might still possible contain information that is still within the credit report exclusion periods of section 605(a), and thus still requires their monitoring.

 

Most information is excluded after 7 years, with the primary exceptions being some BKs at 10 years, and unpaid tax liens, which can extend indefinately.

So it appears that they see most accounts deletable after 7 years, but 10 years builds in accounts that might possibly have a reported BK.

Ergo, the usual 10 year after closing period.  But they may delete any time, with 7 years being the min that might still involve them in a dispute process.

 

I, too, had a closed account that remained for 17 years before they zapped it.  They dont care about consumer impact of loss of account age... they care about reducing their data base size.  It's arbitrary, and thus almost impossible to challenge.

Valued Contributor
Duncanrr
Posts: 2,857
Registered: ‎06-08-2012
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Re: Closed accounts stay on for 10 years, correct?

You would think arbitrary actions are exactly the types of actions you could challenge?


Starting Score: EQ 551 TU 548 CK 607on 6/8/12, EX 542(AMEX pull 3/4/12)
Current Score: EQ 710 TU 727 EX 704 CK 719(FAKO-EX 697, EQ 697, TU 697)
Goal Score: 750

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Valued Contributor
madmann26
Posts: 1,443
Registered: ‎08-30-2012
0

Re: Closed accounts stay on for 10 years, correct?

Duncanrr,

I can't agree more.

Starting Score: EQ 511 TU 552 EX 545 8/29/2012
Current Score: TU 705|EQ 690|EXP 698 (FICO)
What's in my wallet? Cap1 PLAT AU $1.25k; Cap1 Cash AU $2k; NFCU Siggy $23k; $4k WalMart DC; CFNA Firestone $2.2k; Amazon $2.1k; NFCU Cash Rewards $22K; AMEX BCE $18k; NavCheck $15k; Lowe's $10k; Citi DP $6.3k; AMEX ED $8.5k; Chase Freedom $4.5k
Goal Score: 700 across the board.
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