08-19-2011 09:34 AM
In December 2004 I sold a house; I had a first and an equity line. Both of these were paid off in January 2005 after escrow closed. I believe that when the equity line was paid off it was already late 30 days. The balance on the equity line reflects a zero balance, paid in full, etc. However, the current status states "Currently 30 days late". I would leave it as is because I believe it will drop in January 2012; however, on the "Last updated" they have a date of "April 2007" which means that according to that date it would stay until 2014 right?.
This account is really all messed up. Even though they have last updated April 2007 they show paid off - January 2005 and I know it was paid off in January 2005 because I still have the statements.
I already sent them a letter asking them to remove the late but they said no. I called and spoke with someone and she was no help. She said, "well if you apply anywhere they will see that this is paid off and that you are not currently late."
I don't know what to do and I just received my FICO quarterly report showing that this is in the red side of items hurting my score. What can I do?
08-19-2011 12:39 PM
The current status (misleading I know) likely refers to the worst late in the entire delinquency. In this case, if you pull your full reports and see the entire 7-yr history, you should see a 30 day in there, likely the one you referred to. It will fall off by the 7 yrs from that date. So, if the late was 12/2005, then yes, it'll disappear by 12/2012 and that comment should go away. Date last updated really doesn't mean anything. That late will still disappear by 7 yrs. The entire TL should continue to report until 1/2015.
Almost anything can reset that updated date like a dispute, a GW, a phone call, or a random update on their system. It doesn't mean anything.
If I had that, I'd do nothing. While you'll see an annoying red flag for another year, the damage of a 30 day is all gone. It isn't hurting you. I'd be more afraid to shake the tree and have the entire TL delete. I don't know the age of that account (obviously 7+ yrs old), but if older than your AAoA or among your oldest revolving (assuming the limit was under $30k or so) or among your oldest installments (assuming a higher limit), then you could lose points if deleted.
08-19-2011 12:45 PM
Thank you so much I feel better. You mentioned that the entire TL should stay until 2015? Is there a reason why until 2015? I thought it would fall off 2012 because it was paid off in 2005.
Again, thank you and I'm sorry for asking some more.
08-19-2011 01:00 PM
Positive accounts, like yours, will typically stay for 10 years from the date of closure, with any lates disappearing by 7 yrs. Negative accounts (e.g. CAs, COs, most PRs) can't report beyond 7 yrs.
08-19-2011 01:02 PM
Got it! Thanks alot.