topic Re: When does an account fall off your CR??? in Understanding FICO® Scoring

When does an account fall off your CR???

Anonymous — Tue, 15 Nov 2011 22:18:52 GMT

If you close an account in 2006...BUT dont finish paying off the balance until 2010...when will it fall off your credit report??? 7 years from the closed date??Or 7 years from the PIF date??

Re: When does an account fall off your CR???

Anonymous — Tue, 15 Nov 2011 22:56:38 GMT

@Anonymous wrote:
If you close an account in 2006...BUT dont finish paying off the balance until 2010...when will it fall off your credit report??? 7 years from the closed date??Or 7 years from the PIF date??

I'm pretty sure if you keep paying it, it will keep updating the date. So X years from the last payment, however many years that is.

Re: When does an account fall off your CR???

llecs — Wed, 16 Nov 2011 02:41:41 GMT

If it is a positive account, it would depends on the "date closed". The 10-year clock starts at that. If the account is a charge-off, then it would be 7 years from the DOFD.

Re: When does an account fall off your CR???

RobertEG — Wed, 16 Nov 2011 12:37:15 GMT

I think there is some confusion in terminology.

"Accounts" arent excluded from your CR at any time under the FCRA. What become excluded from your CR are individual items of adverse information reported under the account after certain set periods of time, as set forth in FCRA 605(a).

For example, a monthly account delinquency occuring in 7/2005 would be excluded from your CR after 7 years from its date of delinquency, or after 7/2012.

A collection or charge-off reported under an account is excluded from continued reporting in your CR after 7 years plus 180 days from the DOFD on the OC account.

Such exclusions dont require deletion of the account under which they occured.

There are two ways an account is deleted. First, the furnisher of the reporting sends a deletion of the entire account to the CRA, possibly as a result of a dispute over its legitimacy, or simply because they have chosen to discontinue updating of the account. Second, the CRA exercises their non-statutory, arbitrary discretion to delete it.

CRA deletion is not based on any provision of the FCRA, but rather on the internal housekeeping decisions of the CRA. They have arbitrary policies that, after an account has been closed for an extended period, it is no longer relevant to the needs of creditors, and all of the FCRA adverse item periods have usually expired.

The standard CRA policy seems to be one of deletion after 10 years from account closure, but it varies. CRA deletion can have significant impact on both the consumer and credtors, in that it denies creditors prior account history, and it usually reduces the consumer's average age of accounts, and ultimately their oldest account of record,thus impacting their credit score. The CRAs dont seem to care much about those impacts, and just do it for their convenience.

Re: When does an account fall off your CR???

Anonymous — Wed, 16 Nov 2011 13:24:47 GMT

OK...

So it seems the account will stay 10 years from this year. But now my question is....

Is a closed and paid account factored in utilization??? What value on credit score does a paid and close account have???

Re: When does an account fall off your CR???

GregB — Wed, 16 Nov 2011 14:49:31 GMT

@Anonymous wrote:
OK...

So it seems the account will stay 10 years from this year. But now my question is....

Is a closed and paid account factored in utilization??? What value on credit score does a paid and close account have???

Once balance is zero, it is no longer factored into utilization.

It has value as account history, including AAoA.