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CFL accounts ?

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Anonymous
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CFL accounts ?

Good morning all, quick one I have 4 or 5 CFL accounts opened in 1999  reporting on all 3 CR"s all due to fall off in one year from now. My question is how much is this currently negatively impacting my FICO scores secondly how much will this positively help my FICO scores when they fall off. Will losing the age of accounts hurt more than the CFL status or what? thanks to everyone in advance fro your help. Current FICO"s EX 762 EQ 795 TU 784 if this helps.
Message 1 of 6
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haulingthescoreup
Moderator Emerita

Re: CFL accounts ?

Word is that their existence (+) carries more weight than their CFL-ness (-), so you might well see a drop.

No way to tell how much they might be hurting now --quite possibly, not at all. Almost every post I've read where someone actually got a specific negative comment from FICO on screen 2 was from someone who hardly had anything else left wrong on their reports.

I think of them as not so much hurting, but helping less that regular installment loans. The way that credit union CC's don't carry as much weight as national bank cards. Smiley Mad
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Message 2 of 6
Anonymous
Not applicable

Re: CFL accounts ?

Thanks HTSU, will the fact that I losing 5 accounts effect my score in the aspect of number of accounts and also the age of accounts?  I have no adverse information reporting on any of my accounts on all three CR"s. I do have other installment loans for vehicles all PIF like 6 accounts and 2 Mortgages both PIF Maybe this helps. Thanks as always Credit 08
Message 3 of 6
haulingthescoreup
Moderator Emerita

Re: CFL accounts ?

Wow, clean reports! (*sigh*)

Besides the CFL's, how old is your oldest account, and the next oldest account?

What is your current average age?

The major factor will be how many other accounts you have. For someone with 30 accounts, many of them older, there probably wouldn't be much impact. If you have relatively few accounts (open and closed), and most of them younger than these loans, you're going to get hurt, I'm afraid.

No idea how badly --it will depend on how much weight these accounts carried in your overall credit picture.

Think of balance scales: were these loans just about the only things over on the old side, with most stuff over on the new? Or do all your accounts look like piled up fruit on both sides of the scales, and a couple of old lemons falling off of one side don't change the picture much?
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Message 4 of 6
Anonymous
Not applicable

Re: CFL accounts ?

Most recent account opened 4 mos ago oldest account opened 21.5 yrs ago next oldest account age 13 yrs average age of accounts is 6.5 yrs old Total # of accts 34  26 PIF closed 8 remains opened.


Message Edited by credit08 on 09-28-2008 08:04 AM
Message 5 of 6
haulingthescoreup
Moderator Emerita

Re: CFL accounts ?

Even with this, since I don't know how those account ages are distributed, I'm too chicken to predict. If you have a bunch of other accounts that are 9-12 years old, you might be OK. I think you're going to drop for a while, because I think your AAoA will drop.

If you're good with Excel, or if you're a grumpy old fart like me that calculates on the backs of old envelopes, you can try working out what your AAoA will become. Calculate the age of every account showing, except the CFL's, and express in months (so 40m rather than 3y 4m), and add all the ages up. Divide by the number of accounts (I think I'm figuring this right --I'm distracted by the post-mortem on the Tenn-Aurubn game. Smiley Sad ) If you did not include the accounts going bye-bye, the result will be your new AAoA.

Nevertheless, any drop would be temporary. Clean reports X3, with everything getting older and better every month? --scores will be back.

One possibility: you can use the FICO score estimator and enter the current info from one report (only one report's worth of inqs), and note the projected scores. Go back and do the same, with the same report, less the accounts that will fall off, and see if there are different scores.

FICO Score Estimator
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Message 6 of 6
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