What happens/matters after deletion

[Anonymous]

I understand the core concept of credit deletion and have several acounts rolling off my reports this year. My question is what happens now? I would like to buy a house next year, do those still show up during the approval proccess like "Yeah this dude just waited em out" or are they invisible to potential new creditors?

Do the OC keep record of it? Am I forever banned from Chase or USAA because my crazy ex-wife?

thanks for the help

[gdale6]

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@Anonymous wrote:

I understand the core concept of credit deletion and have several acounts rolling off my reports this year. My question is what happens now? I would like to buy a house next year, do those still show up during the approval proccess like "Yeah this dude just waited em out" or are they invisible to potential new creditors? In a regular credit pull they will be masked, but if they pull a full factual report and most dont because they are expensive they could possibly see stuff up to 10 years and in some cases I have heard 15 years. The CRAs say they dont keep the negatives around any longer than they do the positives (10 yrs) as the storage cap needed would be huge.

Do the OC keep record of it? Oh yes, if you included any CUs you are banned forever until you pay them off.  Am I forever banned from Chase or USAA because my crazy ex-wife? USAA you will have to settle with if you want back in, Chase depending on the amount will be at least 10 years post BK. If you were just AU then there would not be a problem and I would be moving to have those TLs deleted completely as you have no financial resp in paying them.

thanks for the help

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 Welcome to MyFico

[RobertEG]

Dont think of it being after "deletion" but rather as being after "exclusion" and it becomes a lot clearer.

FCRA 605(a) mandates that the CRAs cannot normally include adverse items of information reported to your credit file in normal reports they issue after expiration of their credit report exclusion date.  The information is not actually deleted from your credit file, it becomes excluded from showing in your credit report.

However, credit report exclusion is not absolute.  Under certain circumstances, as specified in section 605(b), the exclusion periods do not apply, and a potential creditor can obtain a credit report that includes all information in your file.  An example is if their inquiry pertains to a consumer initiated request for credit having a principal valu of $150K or more. 

OC accounts are not themselves adverse items of information, and thus dont become excluded due to any period under the FCRA.  Monthly delinquencies and charge-offs reported under the account do become excluded.  The ten year deletion of OC accunts after they have been closed is purely an administrative houskeeping procedure used by the CRAs, and can vary widely from that 10 year norm.

Deletion of OC accounts, other than the 10 year after closing policy of the CRAs, requires separtate reporting of deletion by the creditor.

Collections are specifically  defined under the FCRA as being an adverse item of information in and of themselves, and thus, unlike OC accunts, do become excluded after expiration of their credit report exclusion period.

[Anonymous]

Ok, the Priniciple over 150k thing scares me.... after exclusion, will old debts still have an impact on my ability to get a mortgage? I know its hard to say because every case is different, but what are some guidelines to work with here?

[Anonymous]

Thank you for your response and welcome! A quick followup question on OC vs CA exclusions... If for example I owe USAA 3500, they have a derog on my report, and so does Midland collections for the same amount. do they both drop off at the 7 year mark?

[Anonymous]

Individual derogs (charge off and lates) on the OC account drop 7 years from the date they occurred. Collections drop 7.5 years from the DoFD. Typically the Charge Off will be 180 days (give or take) from the DoFD, so they *should* drop about the same time.

Some creditors are quick to charge off an account, and may do so at the 90 day mark, and some are lazy about it, even though they are required to do so by 180 days.