@Anonymous wrote:
I have read here that the payment history of the delinquent accounts will be erased along with the good payment history on those accounts. What about accounts that were not delinquent and were paid on time for years prior to any delinquency? Will those be erased as well? I'm asking about credit cards as well as car loans- both without balance. But shows good credit history. Thanks in advance.
@Anonymous it depends on the specifics of the situation. If you have simply a delinquency then that delinquency will be excluded seven years later, but the account and the remaining positive payment history remains.
according to the FCRA, if an account was charged off or was a collection, then the entire account will be removed 7.5 years from the DOFD, however in practice it happens at 7 years.
however Experian on their blog states that they will remove the entire account if it was delinquent when it was closed, but they will just remove the lates, if it was current when it was closed.
there have also been some recent reports that paying a chargeoff can cause it to drop the CO designation at 7 years and retain the account, whereas if it were unpaid, the entire account would drop. This would seem to be against the FCRA, but it seems that it may be happening. Read a thread this morning, I commented on it where this may be happening.
