Closed accounts and average age of credit

[badassmonkey11]

How can an account still be viewable but not allowed to be considered by a lender when there are late payments that cannot be removed on the same account a charge-off notation is requires by law to be removed?

[guiness56]

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@badassmonkey11 wrote:
That makes no sense. That tells me late payments haunt you for the rest of your life. That cannot be.

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Each late payment will come of 7 years from the date of occurence.  When the last one is gone the TL will again become positive and stay for up to 10 years from the date closed.

[badassmonkey11]

The late payments are only the CO accounts and the accounts were closed in 2007. So you are telling me that them updating my last payment as late and the last one being last month that the account is going to haunt me negatively for 14 years?!

[guiness56]

If your CO is paid they should not be updating with lates.  When did you pay it?

No, that is not what I am saying.  If you were late last month the late will come off 7 years .

[badassmonkey11]

I had three. One was Discover and they do "collections" in house so i kept up with a payment plan and it was paid off in June 2011. Once on that plan (2008) they reported paid as agreed. The next was MBNA which got bought out by BofA and i had no choice again but to do payment plans. I paid it off January 2013. The last was Cap 1 and was paid off last month. Again i had no choice but to do a plan. I paid everything back in full (just took me a while) as i was trying to rebuild credit and save at the same time so that i would not be in that mess again. All three were charged off in 2007 so i thought no matter what ALL negative info would be deleted from the dates of first delinquencies which was before they were officially charged off in their books.

[guiness56]

The CRA has to  exclude the CO and Collection annotations from the OC accounts.  If the OC chooses to delete the TL it is up to them.

[HiLine]

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RobertEG wrote:All OC accounts, open and closed, continue to be scored in your AAoA.

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@RobertEG wrote:

Once an item is excluded from your credit report, it is no longer available for scoring.

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 But AAoA is a scoring variable. How is this possible?

[badassmonkey11]

I still cannot find information that makes sense, so if you do let me know, otherwise i guess i will be updating from PERSONAL EXPERIENCE in a year.

[Roarmeister]

I have a bunch of closed off accounts (ex. car loans) that have been paid off years ago.  They no longer show up in Equifax's credit report for the AAofA.  In fact none of my closed accounts are in their calculation.  So by their calculation my oldest account is only 11 years and the AAoA is 4.5 years and they also include my chequing account.  I did my calculation of all my accounts and have wildly different numbers.

Edited:  I checked my accounts again.  Apparently Equifax was not including my chequing account but a $2500 overdraft amount on the chequing account that I didn't realized I had back then.  I thought my overdraft amount was created when I got my mortgage several years later.  It shows up in my CRs as never being used but is part of my total credit available.

[HiLine]

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@Roarmeister wrote:

I have a bunch of closed off accounts (ex. car loans) that have been paid off years ago.  They no longer show up in Equifax's credit report for the AAofA.  In fact none of my closed accounts are in their calculation.  So by their calculation my oldest account is only 11 years and the AAoA is 4.5 years and they also include my chequing account.  I did my calculation of all my accounts and have wildly different numbers.

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Do you recall how long it took for Equifax to no longer show the closed accounts? Would you be willing to participate in a survey about closed accounts? Your experience would be very helpful!

http://ficoforums.myfico.com/t5/Credit-Cards/Survey-reporting-of-closed-credit-cards/td-p/2006851