Question about accounts included in bankruptcy chapter 7

[Anonymous]

Hello everyone, I'm new here, just have a couple questions. We filed chapter 7 in April 2013 and was discharged August 2013. I didnt seriously start rebuilding credit until this past january. I opened a Capital One card, Ebay Mastercard, Bank Of America world Mastercard and a Victoria's Secret charge card all this past January.

 There are 20+ accounts that were included in the bankruptcy and had multiple late payments for the months before filing. Some of these will fall of starting this coming January, some in February, and the rest in april, leaving just one collection account. When these do all fall off, will it lower average age of accounts and offset the fact that they will be deleted? Or will it likely be a big increase? My score is only around 620 with Experian and 640 with Equifax and Transunion.

[Anonymous]

The removal of accounts will likely have the effect of reducing your average age of accounts. I'm not sure anyone will be able to tell you if it will have a big impact on your score or not, without seeing your full credit report (which I'm not advocating). In general, older items have a lower impact on your credit score.

My guess: The removal of most of your derog items should have a decent increase, which will probably be more impactful than the lower of your average age of accounts.

My follow-up guess: Your activity on your newly approved accounts will probably have a bigger impact (e.g. your current balances vs. credit limits, etc.).

[2b2rich]

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@Anonymous wrote:

Hello everyone, I'm new here, just have a couple questions. We filed chapter 7 in April 2013 and was discharged August 2013. I didnt seriously start rebuilding credit until this past january. I opened a Capital One card, Ebay Mastercard, Bank Of America world Mastercard and a Victoria's Secret charge card all this past January.

 There are 20+ accounts that were included in the bankruptcy and had multiple late payments for the months before filing. Some of these will fall of starting this coming January, some in February, and the rest in april, leaving just one collection account. When these do all fall off, will it lower average age of accounts and offset the fact that they will be deleted? Or will it likely be a big increase? My score is only around 620 with Experian and 640 with Equifax and Transunion.

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If these are the only accounts that have been reporting previous to the ones you opened in January 2019, then yes, it will lower your AAoA.  On the other hand, this doesn't mean that your score will plummet or rise because other factors will play a large part.  Of your new accounts, do they have high balances or any lates? If not, then you may get a bump.  I would venture to say that the lates on those accounts (the worse one must be about 6 years old?) are probably not having a huge impact on your score any longer, so there may not be a big bump up in score when they fall off.

On the other hand, after my divorce years ago, I started paying everything in cash and I had only one very old auto loan about to fall off of my credit reports when I decided to start building for myself.  Within 2 years, my score was 758, so AAoA (mine was less than 18 months)  did weigh on it, but it did NOT keep my score way down.