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New Member
jojo5
Posts: 2
Registered: ‎05-01-2007

'Length of Credit History' question....

Hello all, My length of credit history on all three reports is listed as 'not good', however, on my Experian report, I have an account (car loan) listed since 1991, which means at least 16 years of credit history. But this account is not listed on my TransUnion or Equifax reports. The point is my oldest account for these two reports are only 6 years. My Experian FICO score is 20-30 points higher than the other two given this disparity in years of credit history. My question is this, should I ask the company that issued the car loan to now report to TransUnion and Equifax in order to increase my length of credit history, thus increasing my FICO score(s)? Keep in mind, I paid off this car loan in 1997. Any suggestions?
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Epic Contributor
haulingthescoreup
Posts: 28,115
Registered: ‎04-01-2007

Re: 'Length of Credit History' question....

Since you paid off the loan in 1997, it is due to fall off your EX report any day, as closed credit accounts hang around 10 years from when they're closed. You'll probably see a drop in your EX score, although I certainly wouldn't expect it to be 20 or 30 points.

Are there any other differences in your EX report from your EQ and TU reports? There do seem to be some differences in scores from the different bureaus, even with identical reports--looks like each CRA has its own slant.
* 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
New Member
jojo5
Posts: 2
Registered: ‎05-01-2007

Re: 'Length of Credit History' question....

There are no other major differences except this one account or length of credit history. Just checked latest FICOs: EX-728 EQ-687 TU-702 So the closed account will close after 10years of being not active? Not good that EX score will decrease because of this. Thanks!
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CreditBob
Posts: 493
Registered: ‎05-01-2007

Re: 'Length of Credit History' question....

It takes 12 months of payments before the account is no longer considered new. It takes 4 months (48 months) of payments to have an account established. For example on a vehicle loan do not pay on a vehicle loan for 6 months to a year. Go 4 years of apymenst on it. 30% of your fico score is your balances. So if you have paid off a car loan there is no balance to be factored into the score. The one things that keeping an auto loan on a credit report will do is make it easier to get another car loan. Then it will show other future creditors that you are a lesser risk to them.
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haulingthescoreup
Posts: 28,115
Registered: ‎04-01-2007

Re: 'Length of Credit History' question....


CreditBob wrote:
It takes 12 months of payments before the account is no longer considered new. It takes 4 months (48 months) of payments to have an account established. For example on a vehicle loan do not pay on a vehicle loan for 6 months to a year. Go 4 years of apymenst on it. 30% of your fico score is your balances. So if you have paid off a car loan there is no balance to be factored into the score. The one things that keeping an auto loan on a credit report will do is make it easier to get another car loan. Then it will show other future creditors that you are a lesser risk to them.

Yes, but those paid-off loans contribute to your overall length of credit history, do they not? Just as closed credit cards stay on your reports for 10 more years, and help your length of credit history. I suspect that's part (not all) of the difference in OP's EX score and the other two.

And there's something I'm not understanding here: "on a vehicle loan do not pay on a vehicle loan for 6 months to a year." Ummm... wouldn't that make the lender a bit irritable?
* 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
Senior Contributor
smallfry
Posts: 4,831
Registered: ‎04-20-2007

Re: 'Length of Credit History' question....



haulingthescoreup wrote:

CreditBob wrote:
It takes 12 months of payments before the account is no longer considered new. It takes 4 months (48 months) of payments to have an account established. For example on a vehicle loan do not pay on a vehicle loan for 6 months to a year. Go 4 years of apymenst on it. 30% of your fico score is your balances. So if you have paid off a car loan there is no balance to be factored into the score. The one things that keeping an auto loan on a credit report will do is make it easier to get another car loan. Then it will show other future creditors that you are a lesser risk to them.

Yes, but those paid-off loans contribute to your overall length of credit history, do they not? Just as closed credit cards stay on your reports for 10 more years, and help your length of credit history. I suspect that's part (not all) of the difference in OP's EX score and the other two.

And there's something I'm not understanding here: "on a vehicle loan do not pay on a vehicle loan for 6 months to a year." Ummm... wouldn't that make the lender a bit irritable?


I think he means don't prepay it too quickly. :smileywink:

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