Is this re-aging? And if it is, is it still good?

[Anonymous]

I have an old, closed tradeline for a LOC that I opened in '06.  It reports as closed, paid as agreed.  On EX it reports as closed, paid as agreed, was 60 days late.  Despite this it says "date reported" as 1/31/2013.  It was closed about 4 years ago back in '09.  Ever since it closed the creditor (PenFed) has been reporting on-time payments on the account.  I didn't even know until I pulled my own credit report and looked at my old tradelines for nostalgic purposes (as I never look at closed lines usually).  I noticed it yesterday.  

My questions are as follows:

1. Should I keep letting PenFed continue to report?  Will the late payment fall off (kinda get pushed off the report) as soon as seven years of on-time payments get reported after it?

2. Will the line continue to be considered a 'negative' tradeline if it doesn't fall off?  Does fall off?  (status still reading paid as agreed, was 60 days late).  

3. Is this re-aging the account?  As I understand, 7 years from the derogatory mark (the late payment), the whole tradeline should fall off.  Will these payments being reported keep this from happening?

4. How do I correct this?

Thank you in advance.

EDIT: I've read "Date Reported" can affect your FICO score -- is this true and how would it in my case?  Would someone think that perhaps I just paid it off in full just now... that it has taken me years after the account closing to pay the account off? It was only a $500 CL...  I guess that is my fear.

[chasmith]

The late payment musty age off at seven years plus 180 days, may drop sooner.  Since you paid it, there is no DOFD (if you go delinquent and then catch up the "first delinquency" resets, as I understand it.

Are you still a PenFed customer?  I would just call them and ask why they continue reporting monthly on a closed account.  I don't think this is hurting you, and even if they stop the updates the line will stay on for up to 10 years, with the late item droppong off at around 7 years.

[Anonymous]

Each late payment will come off at 7 years from the date of occurence.  7.5 years is only for collections and COs.  Your on time payments has no affect on pushing the late off.  Whether you made them or not it would still come off at 7 years.

60 day lates are minor dergoatories and will impact your score for around 2 years.  Once the late payments age off the account will become a positive tradeline and continue reporting as an account in good standing for up to 10 years from the date closed.

This account is only considered negative due to the late payments.  There is no DoFD.  Those too are only for collection and COd accounts.

Date reported is the date it was reported to the CRAs.

If it is reporting a balance and a CL it is being factored into your utilization.

[RobertEG]

+1

I would only add that OC accounts dont "fall off" as a result of CR exclusion of items reported under the account.

FCRA 605(a) only prevents the CRA from continuing to include the individual item after its CR exclusion date.

Collections are different,  They are not accounts with the consumer, and are excluded entirely upon passage of more than 7 yrs + 180 days from DOFD on the OC account.

However, they still remain in the consumer's credit file, and under very limited circumstances, could still be included in a CR if the inquiree qualifies for and request a full file credit report under the provisions of FCRA 605(b), which exempts the CR exclusion requirement for certain types of inquiries, such as with respect to an app for credit involving a principal amount of $175K or more. Credit report exclusion is not the same as file deletion.