topic Re: What happens to CO and Collections after 7 or 7.5 years? in Rebuilding Your Credit

What happens to CO and Collections after 7 or 7.5 years?

MaRain — Fri, 17 May 2013 02:08:49 GMT

Hi all,

My apologies if this has been asked before (searched for it using different terms but didn't find what I was looking for ) but what happens to CO and/or Collections after they stop reporting on your CR? I know that I am still liable for the account (at least morally at a minimum) but is it truly "gone" from the CR? Is there an "extended" CR where it goes on to live?

I used to think that that was it, it would go into a dark corner and die (as long as I did not approach the OC for future credit/loan/service in which case I will have to pay them to get the service again (in my case, Time Warner Cable).

I was reading through mortgage posts and someone mentioned that if a lender requested a "certain" report, they would find old items there.

So my question is, does the item(s) fall off your credit report after the 7.5 year CRTP, never to be seen by the human eye again, or is there actually another CR/File in which it still lives and can be seen by creditors/lenders?

Re: What happens to CO and Collections after 7 or 7.5 years?

Anonymous — Fri, 17 May 2013 04:46:52 GMT

Yes, there is. The FCRA exempts these accounts from being excluded for applications of mortgages and insurance over $150,000 and applying for a job with an annual income of $75,000 or more.

It is a report they have to ask for and not many use it or even know about it.

ETA: To be more clear, it is when you apply for a job with an income of $75,000 or more or a mortgage or insurance of $150,000. I re-read what I wrote and realized I worded it entirely wrong. Sorry.

Re: What happens to CO and Collections after 7 or 7.5 years?

MaRain — Fri, 17 May 2013 04:13:50 GMT

Ah, ignorance is bliss

So, if I want to purchase a home worth 200k but made 74,999k or less, or earned over 75k but bought a home for 149,999k or less then I'm in the clear?

Re: What happens to CO and Collections after 7 or 7.5 years?

Anonymous — Fri, 17 May 2013 04:48:01 GMT

If you apply for a mortgage or insurance of $150,000 or more or apply for a job with an annual income of $75,000 a year those are exempt from exlusion. They don't go hand in hand, it is any of these criteria.

I edited my post above. I realized I worded it incorrectly giving it a meaning other than what was intended.

Re: What happens to CO and Collections after 7 or 7.5 years?

MaRain — Fri, 17 May 2013 13:33:30 GMT

Now there you go karate chopping my day again

But seriously, thanks for clarifying. I knew that waiting out the baddies was too easy and there had to be a catch. Oh well, I will continue to garden and make the best of it all

EDIT- Found this entry from llecs regarding this on the mortgage boards:

"The FCRA is clear that inquiries cannot report for longer than 2 yrs. In fact, FICO ignores them after one. The $150,000 applies to bad debts at a principal amount of $150k or more. So, if you get sued for $150,000, then legally it can report beyond the 7-7.5 yr period. In your example, the new mortgage won't be a bad debt.

http://www.ftc.gov/os/statutes/031224fcra.pdf"

This is the link to the fulll thread: http://ficoforums.myfico.com/t5/Mortgage-Loans/FHA-Loan-Inquiry/m-p/1849223#M112441

Hope this can help someone out.....

Re: What happens to CO and Collections after 7 or 7.5 years?

Anonymous — Fri, 17 May 2013 15:27:40 GMT

I am not sure what he is talking about. The $150,000 has nothing to do with bad debt at all. The FCRA is saying if you do apply for $150,000 or more, then anything that has gone beyond the 7.5 years for reporting can be included in the report.

I would say 95% of people have never heard of this but it can happen, though it rarely does.

Re: What happens to CO and Collections after 7 or 7.5 years?

MaRain — Fri, 17 May 2013 19:31:04 GMT

It does seem that it is rare. I believe the name of what I was referring to is called a "Full File Disclosure Report" or something along those lines. Seems to have been something that was done in the past but has since went the way of the dinosaur.

Based off of what I'm reading on credit apps, mortgages and personal loans, as long as it is not reporting on your CR, then all seems to be ok.

But in my quest of reading up on this, I have been down a few rabbit holes and have happened upon other CR (Telecheck, Innovis, etc) and have ordered those reports as well. So in addition to cleaning up the big 3, I now will include those in my quest for credit cleanliness.

Ah, the wonders of the internet never cease to amaze me

Is there anything else that would fall within this thread that I should know? (i.e. other CR, reporting periods, statues, etc)?

Re: What happens to CO and Collections after 7 or 7.5 years?

Anonymous — Fri, 17 May 2013 20:42:10 GMT

I can tell you that it still exists. I think it really depends on what part of the country you live in. When I lived in WA State housing was very expensive and almost all of the LOs pulled the full disclosure report. Not only housing but living there in general was very expensive. I have only been away from there for 2 years.

Again, it is something that can be done but is not very ofen. It would only apply to mortgages and insurance, nothing else. Not credit cards, personal loans etc. I have no idea why but that is what the FCRA says.

There is another CRA also. It deals with only cell phones, cable, utilities ect, you may want to get a report from. http://www.nctue.com/

Re: What happens to CO and Collections after 7 or 7.5 years?

MaRain — Fri, 17 May 2013 21:01:06 GMT

guiness56, I will have to stop chatting with you, lolz. Right when I think I'm in the clear and am up to date, you spring something else on me

I've read some horror stories regarding the report and mortgages so I do believe it's out there, but am hoping that the price point I'm looking at (200k or less in a 350k median market, in California) will save me from the same fate.

I was unaware of the CRA that dealt with utilities, etc so I will look that up now and get a report

I'm almost scared to ask (haha) but is there anything else I should be aware of? I never quite realized that Big Brother (and his sisters) are certainly watching from their financial perches

Re: What happens to CO and Collections after 7 or 7.5 years?

Anonymous — Fri, 17 May 2013 21:10:20 GMT

Lol.

Anything else, like what?

Oh, Lexis Nexis. Check them out. I believe you can get a report from them also.

Re: What happens to CO and Collections after 7 or 7.5 years?

MaRain — Fri, 17 May 2013 21:52:37 GMT

Any other brick walls, detours, potholes, slow drivers, etc along the road of my credit rebuild?

I've heard of Lexis but didnt' realize that they offered a report as well. For some reason, I guess that I was just stuck on the Big 3 that I just skimmed over those parts in "Please read!" the FAQ threads of this forum.

I know that as I continue to read the forums and learn that I will bump into you as I progress. Thanks for all of the extremely helpful info.

Re: What happens to CO and Collections after 7 or 7.5 years?

MaRain — Wed, 22 May 2013 02:19:32 GMT

Ok, after some more research, I have found that I can also get a CR from CoreLogic/Credco (Credco is the report that was pulled by our broker last year when I was testing the mortgage waters).

I don't know if I can get scores with it but if I can, I just might. If anyone has experience with the accuracy of the scores, please let me know.

Re: What happens to CO and Collections after 7 or 7.5 years?

kjel — Wed, 22 May 2013 03:01:55 GMT

@MaRain wrote:
Ok, after some more research, I have found that I can also get a CR from CoreLogic/Credco (Credco is the report that was pulled by our broker last year when I was testing the mortgage waters).

I don't know if I can get scores with it but if I can, I just might. If anyone has experience with the accuracy of the scores, please let me know.

The organization that I work for does prepurchase counseling and uses Credco for a soft pull trimerge report (all 3 CRAs) plus FICO scores. We've found it to be accurate. I am not sure that it's available to an individual consumer though.