Red flags and old accounts

[Anonymous]

I have several red flags on old, inactive or closed accounts. The fact that they are old seems to help my score since they are long term. The red flags seem to be hurting me. What is the best way to handle this as I am looking to raise my scores.

[llecs]

Tip-toe. It's a delicate balance when weighing a baddie's impact with the weight of the TL's age in relation to your AAoA. I've lost and gained points when removing old COs.

FICO favors the oldest account and the oldest within each category (e.g. oldest revolving, oldest installment). So, if not wanting to wait, then aim for PFDs on the newest baddies if unpaid or GWs if paid. Don't always to be eager to have a deletion though. Also know that at the end of 7 yrs from the DOFD, your lates would have been removed. So, if you are at 6 yrs, for example, it might just be worth waiting another year. Sometimes CO'd account can turn into a positive and report that way for another 3 yrs. 

[RobertEG]

What is the status of the debt on those red-flagged accounts, paid or unpaid?

Are they old enough that the SOL has expired on any unpaid debt?

Has a collection already reported?

Are the derogs reported by an OC, a debt collector, or both? 

In addition to current impact, I would also look at the possibility of additional negative reporting.

[Anonymous]

My red flag accounts have no balance have been closed . There has been no collection on the accounts. One account closed June 2006 indicates a 60 DAY late payment from MAY 2006.

[RobertEG]

Having no reported balances does not mean there is no remaining debt.  If the creditor sold the debt, they were required to repoort a $0 balance.

The debt would still be out there, and reportable by the new owner.

If the closed account is now showing a $0 balance yet the debt is unpaid, you cannot use a PFD offer to the creditor.

The possibility of reporting by another still looms until the CR exclusion period expires.

Thus, more info is needed on the status of both the prior reporting and of the debt in order to offer advice on a course of action.

It may be that current reporting is not the biggest issue......