Oldest Account is a Charge Off?

[Anonymous]

My oldest account is a charge off.  Olest account is 11.5 years.  After that it's a year, but all positive.  The Charge off is set to roll off the credit reports in June of 2018.  Should I request early exclusion, or just leave it?  Keep a dirty old account, or flush it for a cleaner younger report?

Thanks!

[Anonymous]

In my opinion.  You will gain more points than you'll lose.  Payment history trumps age of accounts.

[Miner]

I doubt the affect of increasing your credit history by a year or two and a minor bump in average account age is helping you much given you already are already pass the 10 year mark in history is worth the damage it is doing to your score.  Chargeoffs weigh down your credit report like an anchor.  They definitely are treated differently then just having some 30 day lates as their affect doesn't totally disappear until they go.  The 2 paid chargeoffs on my reports are definitely the biggest factor in holding down my score and the biggest reason I've been given for declined credit apps.  Mine also fall off at the end of this year, so I'm going to try for early exclusion when they reach the 6 months left mark and hope for the best.  In my case, they are the last big negatives left, as everything else is a handful of 30 day lates that are mroe than 2 years old.

[Anonymous]

if I ask for early exclusion of the 11.5 year old account, what happens to the length of my credit history?  Will it jump down to the next oldest account?  Just curious.

Thanks!

[Anonymous]

EE it. You’ll gain far more points by getting rid of the negative than points you lose in average age of accounts. A negative is never good on a profile.

[Anonymous]

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@Anonymous wrote:

EE it. You’ll gain far more points by getting rid of the negative than points you lose in average age of accounts. A negative is never good on a profile.

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Thanks, Ben!

[Anonymous]

Your initial post isn't clear so I can't make a good guidance suggestion.

Some possible untrue statements here that don't include some prefaces that are needed in case future readers come to the post and assume things.

First, only EE it if it's your ONLY derogatory tradeline remaining.  If you have other derogatories (more than 3 total including this one), EE may have zero effect on your score for reducing penalties, but the age drop from 11 years to 1 year can be serious in FICO drop.  If it's your ONLY derogatory, EE it.  If you have one more derogatory (but not more than 1 more), I'd probably still EE it but it's debateable.  If you have many derogatories, don't EE it at all.

[Anonymous]

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@Anonymous wrote:

Your initial post isn't clear so I can't make a good guidance suggestion.

Some possible untrue statements here that don't include some prefaces that are needed in case future readers come to the post and assume things.

First, only EE it if it's your ONLY derogatory tradeline remaining.  If you have other derogatories (more than 3 total including this one), EE may have zero effect on your score for reducing penalties, but the age drop from 11 years to 1 year can be serious in FICO drop.  If it's your ONLY derogatory, EE it.  If you have one more derogatory (but not more than 1 more), I'd probably still EE it but it's debateable.  If you have many derogatories, don't EE it at all.

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Thank you for the guidance, ABCD.

I was hoping you would chime in.

Maybe I'm confused about length of credit history markers.

I have an old capital one auto loan that's closed, but was from 11 years ago.  Is this affecting my scores in a positive manner still?  Also, if this was the oldest account on my reports (this capital one from 11 years ago), will this be used as my oldest account?

Thanks!

[RobertEG]

Early exclusion would seem to be of very little relevance, as it would only involve a removal of at best a few months.

The CRA must exclude the reported charge-off no later than 7 years plus 180 days from the reported DOFD.

They normally grant their own early exclusion at approx 7 years from DOFD.

They may also, if requested, choose to exclude a few more months earlier.

However, it is all academic if you dont need your score to apply for new credit prior to when they exclude.

As for whether the CRA will exclude only the charge-off per se or the entire account, have you paid the debt, or is the current status still one of delinquency?

[Anonymous]

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@RobertEG wrote:

Early exclusion would seem to be of very little relevance, as it would only involve a removal of at best a few months.

The CRA must exclude the reported charge-off no later than 7 years plus 180 days from the reported DOFD.

They normally grant their own early exclusion at approx 7 years from DOFD.

They may also, if requested, choose to exclude a few more months earlier.

However, it is all academic if you dont need your score to apply for new credit prior to when they exclude.

As for whether the CRA will exclude only the charge-off per se or the entire account, have you paid the debt, or is the current status still one of delinquency?

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As of yet, the CO has not been paid.

Thanks.