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Yes since they are negative accounts they will be deleted after seven years. Hard to say score. On one hand if it’s your only negative you will gain lots of points. Some of that gain may be offset by not having any Installment loans. Best guess is a gain. Just not as much as it could be if you had an active installment loan. I won’t try to guess points. Sounds like you have a very thin file. This makes things volatile with respect to scores.
@Anonymouswrote:
Hi! I'm hoping someone can help. I have late payments on a couple paid student loans that are scheduled to come off reports June 2018, dofd is 06/2011. Will the student loans come off of report completely at 7 yrs or just the late payments? Lates will drop off at each ones 7 year mark, the account will continue on record for 10 years post close.
Will this negatively affect my score at all if the student loan gets deleted as its my only installment loan? Its closed so you are only getting scored on AAoA and its payment history. If the lates are greater than 30 day there could possibly be a small increase in Fico when the last one drops.
Any help would greatly be appreciated.
Delinquencies in a chain of delinquency are all excluded no later than 7 years from the date of the first delinquency in the chain of monthly delinquencies. The CRAs consider the initial delinquency as establishing the delinquency on the account, with subsequent monthly delinquencies simply showing the increased age since the intial delinquency, and thus they interpret FCRA 605(a)(5) as requiring the exclusion of any reference to delinquency once the account reaches 7 years from when it initially became delinquent.
The CRA will also remove the entire account IF, at time of their evaluation of the exclusion of monthly delinquencies, the account is still in a delinquency status. However, if the account was returned to a non-delinquency current status, then only the delinquencies will be removed, and not the entire account. The post states the loan is paid, so the current status would not be one or any current delinquency,and thus the entire account would not be removed based on removal of the delinquencies.
The removal of accounts after 10 years from date of closure is not mandated under the FCRA, and is entirely a housecleaning procedure implemented by the CRAs. It is approx 10 years from date of closure of the account, not the date opened.
However, actual removal varies greatly depending upon CRA mood. I personally had an account remain for 16 years after closure date before the CRA got around to cleaning it out.