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How long will this negative information affect my scores?

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Anonymous
Not applicable

How long will this negative information affect my scores?

I've just got my credit scores as part of a successful refinancing.  (Refinanced to get a much lower interest rate and shave 6 years off my pay-off.)  

Exp:  745    Equif:  728   and   TU:  718   This is actually good compared to some in past.  Still, I have a couple of questions about the negative information and how long it will affect my account:

 

I was dinged for "too many consumer finance company accounts".  I think there were five total (four from Citifinancial and one from my credit union) but never more than one at any given time and all were paid off on time or early.  The only one that is still active is one where I bought furniture at 0% interest and I have been paying above the minimum payments on it.  I could easily pay that one off, but hadn't seen any urgency since it was 0% interest.  Two of these accounts are are still on the record even though they were paid off in 2000 and 2002 respectively.  Just how long do these stay on my record and how long will I be dinged for them?  And how many is too many -- especially since I've never had more than one at any given time?

 

I was also dinged for some delinquent payments.  As far as I can tell, they were all in 2003.  How long do these affect my record?  None were more than 3 months delinquent, most one or two.  I understand them being negatives ... but for how long?  All my current cards have zero balance and I'm keeping them that way.

 

Thanks 

 

 

Message 1 of 6
5 REPLIES 5
MarineVietVet
Moderator Emeritus

Re: How long will this negative information affect my scores?


@Anonymous wrote:

I've just got my credit scores as part of a successful refinancing.  (Refinanced to get a much lower interest rate and shave 6 years off my pay-off.)  

Exp:  745    Equif:  728   and   TU:  718   This is actually good compared to some in past.  Still, I have a couple of questions about the negative information and how long it will affect my account:

 

I was dinged for "too many consumer finance company accounts".  I think there were five total (four from Citifinancial and one from my credit union) but never more than one at any given time and all were paid off on time or early.  The only one that is still active is one where I bought furniture at 0% interest and I have been paying above the minimum payments on it.  I could easily pay that one off, but hadn't seen any urgency since it was 0% interest.  Two of these accounts are are still on the record even though they were paid off in 2000 and 2002 respectively.  Just how long do these stay on my record and how long will I be dinged for them?  And how many is too many -- especially since I've never had more than one at any given time? Are they closed and in good standing? If so they will remain for up to 10 years. I personally wouldn't worry too much about those with your scores. But that's just me. Others might have a different opinion.

 

I was also dinged for some delinquent payments.  As far as I can tell, they were all in 2003.  How long do these affect my record?  None were more than 3 months delinquent, most one or two.  I understand them being negatives ... but for how long?  All my current cards have zero balance and I'm keeping them that way. Monthly delinquencies under an OC account drop at 7 years from their individual date of delinquency. FCRA 605(a)(5). The date of first delinquency (DOFD) has nothing to do with these drop-off dates. They drop from their own individual dates. So look at each prior OC reported monthly derog date, and simply add 7 years.

 

Thanks 

 

 


 

Message 2 of 6
Anonymous
Not applicable

Re: How long will this negative information affect my scores?

Yes, if your consumer finance account is closed and in good standing, it can report for up to ten years.  The good news is that as soon as it is closed, the effect will start to diminish, causing less of an impact as it ages, until it falls off.  It only takes one consumer finance account to get hit with this. 

 

On my reports, "Too many consumer finance accounts" comes in at #2 - second only to my bk, and ahead of my (many) recent inquiries and new accounts.  So, to me, if FICO rates it that high on my negatives - I figure it's impact is significant enough that I will do my darndest to avoid consumer finance accounts in the future.

 

Congrats on your refinancing - lower interest rate (yay!) and shaving those lovely six years off your pay-off.  WTG!

Message 3 of 6
Jazzzy
Valued Contributor

Re: How long will this negative information affect my scores?


@Anonymous wrote:

Yes, if your consumer finance account is closed and in good standing, it can report for up to ten years.  The good news is that as soon as it is closed, the effect will start to diminish, causing less of an impact as it ages, until it falls off.  It only takes one consumer finance account to get hit with this. 

 

On my reports, "Too many consumer finance accounts" comes in at #2 - second only to my bk, and ahead of my (many) recent inquiries and new accounts.  So, to me, if FICO rates it that high on my negatives - I figure it's impact is significant enough that I will do my darndest to avoid consumer finance accounts in the future.

 

Congrats on your refinancing - lower interest rate (yay!) and shaving those lovely six years off your pay-off.  WTG!


Hi beamMEup...do you see this on your Score Watch reports? Is that where it would be...on the page with the scales?

Message 4 of 6
Anonymous
Not applicable

Re: How long will this negative information affect my scores?

Morning 'nette! 

 

This shows up on my mortgage pull (and on myfico.com/12).  

 

I have yet to see this show up on myfico.com reports or scorewatch. 

 

To clarify, even when this is at the #2/#3 spot on mortgage or myfico.com/12; it does not show up in the top three negatives posted on my scales.  I assume that this (Too Many Consumer Finance Company Accounts) is not discussed much on these forums, or is somewhat dismissed, primarily because it is NOT showing up on myfico reports or scorewatch. 

 

On my mortgage pull (CBCInnovis), 7/30/09, my Equifax score of 708 shows (in this order):

1--#40    Derogatory Public Record (my BK)

2--#6   Too Many Consumer Finance Company Accounts

3--#14   Length of Time Accounts Have Been Established

4--#8   Too Many Inquiries in the Last 12 Months (Five Inquiries) 

 

On myfico, 7/30/09 (same day), my Equifax shows the following hurting my score (in this order):

1—You have a public record on your credit report (this is #40)

2—You have a short credit history (this is #14)

3—You’ve recently been looking for credit (this is #8) 

 

On myfico.com/12, ten days later 8/9/09, with the only change being the addition of the mortgage app (so one more inquiry), shows the following (in this order):

1--#40 You have a public record on your credit report

2--#8  You’ve recently been looking for credit (Six Inquiries)

3--#6  You have a consumer finance account on your credit report

4--#14  You have a short credit history 

 

I have to note that this was our only surprise when we mortgage app’d.  We knew our scores and our derogatories (because of pulling multiple reports and six months of scorewatches on myfico) with the notable exception of #6 – Too Many Consumer Finance Company Accounts – which was, in reality, our second most derogatory, second only to the BK. 

 

Whew!  That was a lot of info for a Saturday morning.  I hope I’m making a yummy lunch!  (Hope you are, too).

Message 5 of 6
Jazzzy
Valued Contributor

Re: How long will this negative information affect my scores?

Hi beam...(just a tiny, temporary TJ here...)

 

On your CBCInnovis report...when they say "too many inquiries in the last 12 mos"...

 

This is a trimerge report, right? So...are they counting the inquiries on all 3 reports? How do they calculate this?

Message 6 of 6
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