Do Consumer Finance Accounts ever drop off your credit report

[Anonymous]

After a few years of working on trying to improve me credit, I recently pulled my two reports.  Under 'Understanding Your Score' in my TransUnion report, it says that I have two CFAs that are hurting my score.  Yes they are there.  I had to get the loans to help get me out of this mess.  They are paid in full and closed - have been for several years.  I thought bad marks would eventually drop off if you kept your nose clean.  Am I cursed to have these two accounts on my credit even though they were paid timely?  It says some lender will look negatively on having these accounts on your credit report.  Will they ever drop off?  After seven years, can I ask for them to be removed, or are all lenders always going to know I had problems in the past and judge me for that past?  My TransUnion score is now 722, by the way, but if lenders don't like to see them, I don't want them there.

[RobertEG]

The relevant provision is FCRA 605(a)(5), which requires that any adverse item of information not specifically mentioned in FCRA 605(a)(1)-(4) most drop from your CR after 7 years from the date of the derog information. 

You dont go back to the creditor for CR deletion matters to to aging of a derog..  Responsibility for CR deletion resides solely with the CRA.  If it appears in your CR after 7 years from the date of reported delinquency, you contact the CRA for their  violation of FCRA 605(a).

[Anonymous]

It looks to me, then, that getting this off of my CRs in the next couple of years should be fairly simple.  There's no derogatory remarks on them, only that they exist,  So, would they be eligible to be removed 7 years from when I opened them or 7 years after they are paid off and closed?

[MarineVietVet]

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@Anonymous wrote:

After a few years of working on trying to improve me credit, I recently pulled my two reports.  Under 'Understanding Your Score' in my TransUnion report, it says that I have two CFAs that are hurting my score.  Yes they are there.  I had to get the loans to help get me out of this mess.  They are paid in full and closed - have been for several years.  I thought bad marks would eventually drop off if you kept your nose clean.  Am I cursed to have these two accounts on my credit even though they were paid timely?  It says some lender will look negatively on having these accounts on your credit report.  Will they ever drop off?  After seven years, can I ask for them to be removed, or are all lenders always going to know I had problems in the past and judge me for that past?  My TransUnion score is now 722, by the way, but if lenders don't like to see them, I don't want them there.

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Were they closed in good standing? In other words you never had any lates ot other negatives associated with these accounts?

Generally closed accounts will stay for up to 10 years after closing. In some cases they drop off early and in rare instances closed accounts will stay on past the normal 10 year limit.

Is a CFA notation a bad thing? I've read different opinions on that so I'm not going to say one way or another because I don't really know enough about them.

As far as what TU had to say about it my TU report always says my non-mortgage loan balances are too high but I pay it no attention. Does your TU report say these "might be hurting your score" or does it state they are definitely hurting?

From a BK years ago to:
EX - 9/09 pulled by lender 802, EQ - 10/10-813, TU - 10/10-774

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

[Anonymous]

Marinevelvet, this is what it says.....

You have a consumer finance account on your credit report.

Number of consumer finance accounts on your credit report
2 accounts

Only 12% of FICO High Achievers [?] have a consumer finance account.

Consumer finance companies typically grant loans to people with poor credit histories. Their customers often cannot get loans from traditional lending companies such as banks or credit unions. These are often high-interest loans because the consumer finance company is assuming more risk by lending to people with less than perfect credit.

The fact that you have a consumer finance company loan on your credit report means that you represent a higher risk to lenders than someone with no consumer finance loans. Even if this consumer finance account is closed, it will still lower your FICO score. However, its impact on your score will lessen as time passes.

What to do about this: You should try to stay current with all of your payments and avoid opening any new credit accounts that you don't need.

[RobertEG]

They drop after 7 years from the date the delinquency occured.  Account opening and closing dates are irrelevant to calculation of CR deletion date.

The CRA is charged with monitoring deletion dates.  It should be automatic, if they do their job.

No, the accounts dont drop, but any derog information thereunder must be excluded from any CR they provide after 7 years from the date of the derog.

[MarineVietVet]

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@RobertEG wrote:

They drop after 7 years from the date the delinquency occured.  Account opening and closing dates are irrelevant to calculation of CR deletion date.

The CRA is charged with monitoring deletion dates.  It should be automatic, if they do their job.

No, the accounts dont drop, but any derog information thereunder must be excluded from any CR they provide after 7 years from the date of the derog.

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Robert the OP said: There's no derogatory remarks on them, only that they exist, 

She just wants the CFA accounts gone. It has nothing to do with derogatories.

From a BK years ago to:
EX - 9/09 pulled by lender 802, EQ - 10/10-813, TU - 10/10-774

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

[MarineVietVet]

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@Anonymous wrote:

Marinevelvet, this is what it says.....

You have a consumer finance account on your credit report.

Number of consumer finance accounts on your credit report
2 accounts

Only 12% of FICO High Achievers [?] have a consumer finance account.

Consumer finance companies typically grant loans to people with poor credit histories. Their customers often cannot get loans from traditional lending companies such as banks or credit unions. These are often high-interest loans because the consumer finance company is assuming more risk by lending to people with less than perfect credit.

The fact that you have a consumer finance company loan on your credit report means that you represent a higher risk to lenders than someone with no consumer finance loans. Even if this consumer finance account is closed, it will still lower your FICO score. However, its impact on your score will lessen as time passes.

What to do about this: You should try to stay current with all of your payments and avoid opening any new credit accounts that you don't need.

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As I said you'll get different opinions about CFA's. Here is one thread talking about this: http://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/quot-Consumer-Finance-Account-quot/m-p/43.... In it one of our long time members and who is very respected thinks that the damage from a CFA is minor.

Here are some more threads talking about CFA's if you want to read other views on this: http://ficoforums.myfico.com/t5/forums/searchpage/tab/message?q=consumer+finance+accounts.

From a BK years ago to:
EX - 9/09 pulled by lender 802, EQ - 10/10-813, TU - 10/10-774

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

[RobertEG]

Posting of derogs and the posting of supplemental remarks are totally different. .  OP posted about exising derogs still in the CR,. not remarks.

Dates of derogs appear to have everything to do with it.

[Anonymous]

Yes, I do have a few derogs on my report, but not on these two Household Finance accounts.  They have been closed for several years, but not yet 10.  I don't see anything bad on these accounts except that they exist.