Account removal question..

[shane1120]

Say you have an account, its your oldest account (Opened in 2004), it has 10+ lates on it and was charged off(2008), but paid. Two questions.

1) will it benefit my report more if this is removed since its a CO and had lates in it.

Or

2) will this hurt my account more than help it since it is my oldest account, AAoA? It is due to fall off in 2016. It was charged off in 2008

thanks

[guiness56]

If it is your oldest account you will lose AAoA if it is your oldest account.  What is your next oldest?

IMO, I advocate clean reports.  Though you will lose points for AAoA, you may gain points for its removal.  Worst case is the points will equal out and you would neither gain nor lose.

In 2016, only the negative indicators will be removed.  It would be up to the OC to entirely remove the TL then.

[RobertEG]

+1

Additionally, if the derogs on that account are the only remaining major derogs, deletion would move you into a "clean" scoring category ("bucket") in payment history, which should help.

And, apart from purely FICO scoring issues, if you app for new credit where the creditor will do a manual review, the absence of the CO will remove the prior comment that you were determined, in the past, to have a debt that you were not going to pay.

[shane1120]

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@guiness56 wrote:

If it is your oldest account you will lose AAoA if it is your oldest account.  What is your next oldest?

IMO, I advocate clean reports.  Though you will lose points for AAoA, you may gain points for its removal.  Worst case is the points will equal out and you would neither gain nor lose.

In 2016, only the negative indicators will be removed.  It would be up to the OC to entirely remove the TL then.

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2 closed CC accounts from 2005 that were closed in good standing

[guiness56]

Were those closed in 2005?

[shane1120]

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@guiness56 wrote:

Were those closed in 2005?

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no, they were closed between 2006-2008

[guiness56]

The most you would lose for AAoA would be a year.  If you can deal with that I would get the TL removed.

[ABuckNow]

If you're solely looking for a score-bump, I don't know...I'd guess removing it entirely would be best - charge-off is a major derog.  My experience has been paid or unpaid is irrelevant to scoring, you'll hear much the same thing on these boards.

However, if you're looking for something more specific with your credit, i'd consider removing it.  Like if it was a CC account that was charged-off and you're seeking credit in the form of a new credit card, I'd have it removed.