The bottom line in deletion of accounts from a consumer credit report is that it will distort credit scoring, and thus impact the integrity of the credit reporting and scoring system.
One can usually find some impact on their credit score by the deletion of accounts, even if it is just AAoA.
There are only two mays that accounts are dropped from one's credit file.
The first is that the creditor who reported the account can delete it on their own, at any time. The CRA has no discretion for such deletions. While a creditor really should not delete an account on their own initiative, once the account is closed and in good standing, they may want to just clear up their records, and thus delete the account. They care only about their business files, and not your credit reporting file.
The second way is that the CRA can delete accounts on their own initiative. The basic mission of any CRA is to preserve the integrity of the credit reporting, but their real focus is to protect themselves regarding what they consider to be their iterests. They are obligated to retain accurate records of prior derogs and delinquencies that are still within the 7-10 year period for cotinued inclusion in your CR. After that, they dont see a need to retain information that can no longer be included in your normal CR. Thus arises the policy by some CRAs to delete accounts from a consumer CR after 10 years from account closing. That policy ignores both the ability of a propsective creditor to access information after those normal drop-off dates under FCRA 605(a), due to the express exemption of such deletions under the limited provisons of FCRA 605(b). It also ignores the negative impact on consumer scores due to reduction in AAoA,and maybe also in oldest account. They simply put there needs first.
Unfortunately, when a CRA may choose to delete old accounts from a consumer file is totally unregulated. So they do what is convenient for them, and not what is fair to accurate credit scoring.
