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Obt3wKLq5t
Posts: 53
Registered: ‎04-15-2009
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Which is better, remove or left alone an account with 16 years of history with one late 6 years ago

[ Edited ]

This question was raised to me in a private conversation which I have no answers for.  This profile is relatively light with this account in question being the oldest and it is also closed.  The account was opened 1996 with one late in 2006.  The next oldest account is from 1999 with the remaining accounts, closed or open, opened from 2008. There are less than 10 credit records in the credit profile.  Score is decent at above 750 from all three bureau, 783 Eq, 770 Ex, 763 Trans.  This account only showed up on Equifax and Transunion.

 

 

American Express SPG, American Express Costo TE, Chase Freedom, Chase Marriott Premier VS, Chase United Explorer VS, Citi Forward, Citi Dividend World Elite, Citi AA Advantage VS, Discover More, Penfed Platinum Cash Rewards, Penfed Platinum Rewards, Dell, Macy, Kohls for extra savings
VantageScore - 990
CreditKarma - 772
According to Identity Guard:
Equifax 794
Experian 786
Transunion 797
Senior Contributor
Walt_K
Posts: 3,065
Registered: ‎11-02-2009
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Re: Which is better, remove or left alone an account with 16 years of history with one late 6 years

Leave it alone.  One late 6 years ago has little, if any effect (30 day late probably has no effect).  And that late will be gone in another year and then the account will be completely clean.


Starting Score: ~500 (12/01/2008)
Current Score: EQ 681 (04/05/13); TU 98 728 (01/06/12), TU 08? 760 (provided by Barclay 1/2/14), TU 04 728 (lender pull 01/12/12); EX 742 (lender pull 01/12/12)
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New Contributor
Obt3wKLq5t
Posts: 53
Registered: ‎04-15-2009
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Re: Which is better, remove or left alone an account with 16 years of history with one late 6 years

That makes sense.  I didn't thought of the 7 year rule.  That might have something to do with this person not being able to get any new cards until 2008.  She was repeatedly rejected prior to that.

American Express SPG, American Express Costo TE, Chase Freedom, Chase Marriott Premier VS, Chase United Explorer VS, Citi Forward, Citi Dividend World Elite, Citi AA Advantage VS, Discover More, Penfed Platinum Cash Rewards, Penfed Platinum Rewards, Dell, Macy, Kohls for extra savings
VantageScore - 990
CreditKarma - 772
According to Identity Guard:
Equifax 794
Experian 786
Transunion 797
Mega Contributor
RobertEG
Posts: 18,211
Registered: ‎03-19-2007
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Re: Which is better, remove or left alone an account with 16 years of history with one late 6 years

[ Edited ]

I would definately not seek deletion of the account..

Aside from being the oldest account, which helps both oldest acct and AAoA, it shows, upon a manual review, that the consumer has been in the credit market awhile.

While consumer age is not a FICO scoring criteria, it is certainly a factor used by creditors in their own internal determinations.

By implication, and oldest account of 16 years represents a consumer in at least their mid-30's.  Not a twenty-year oldish new consumer.

And, as stated, upon expiration of 7 years from the 2006 delinquency date, the derog will be gone from manual review.

 

However, any consumer decision may be academic.  The CRAs have an internal, and in my opinion questionable, policy of deleting accounts after they have passed all of their usual credit report exclusion periods... approx 10 years from date of closure of the account.

The consumer has no control over this arbitrary deletion.  It may go poof on its own.

When was the account closed?

 

 

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Shogun
Posts: 12,952
Registered: ‎04-15-2011
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Re: Which is better, remove or left alone an account with 16 years of history with one late 6 years

+1  It's getting close to going to a totally positive account with the late nearing end of life.  It will add to your AAoA and help your score.


Starting Score: 504

July 2013 score: EQ FICO 819, TU08 778, EX "806 lender pull 07/26/2013
Goal Score: All Scores 760+, Newest goal 800+

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Established Contributor
cashnocredit
Posts: 1,028
Registered: ‎07-18-2009
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Re: Which is better, remove or left alone an account with 16 years of history with one late 6 years


Shogun wrote:

+1  It's getting close to going to a totally positive account with the late nearing end of life.  It will add to your AAoA and help your score.


Yep. For the next year you get a slight ding. For the three years after that you get a nice extension from the oldest acct. as well as AAoA. After that it doesn't make any difference at all. There is always the riks of a dispute removing the TL which would be a net negative.

 

All depends on your short/long term needs. I'd leave it alone.

I have reestablished credit over the last couple years
so my moniker is, well, rather out of date.

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