Some Oddities in my Credit Report

[Anonymous]

I've been trolling for some time, but now time for my first post! I'm really trying to better my financial situation and hopefully some answers can help.

I have a closed Macys Account on my report. The remarks say Account Closed At Credit Grantor's Request. I believe at some point I was either 60 or 90 days late on the account, I don't remember when though. But the balance date is showing 12/2010 (this is from a report I pulled 1/2011) First of all, why is it still reporting? And second, is this bad? If so, how bad?

I also had a VW line of credit opened back in 2003 with my dad as a cosigner. Due to some unforseen circumstances, the balance was PIF within a year on the account. However, its showing a balance of $0 and showing the account as open. Do I need to close this? What are the repercussions to my credit if I do?

Thanks to all!

[Anonymous]

In my eagerness to post I forgot to mention that the account was opened in 2004 and I thought it had been closed back in 2006.

[llecs]

Is there a balance reporting on the Macys? Or did you pay it off back when?

Negative accounts remain for 7 years past the date of first delinquency (DOFD). DOFD is the date you first went late and never recovered. If you look at the account, and assuming you don't see a 30 day late before the 60, then DOFD should be 60 days prior to that 60 day late reporting. At that point, the clock for the Credit Reporting Time Period (CRTP) starts ticking down and that's 7-7.5 years. At some point, this account could turn positive and it'll report for 10 years from the date of closure. A 60-day late can drop your scores easily into the solid double digits, but the damage fades over time fairly quickly. The 90-day is considered a major derog and that'll sting for the full 7-yrs. Assuming it is paid, you could send Macys a GW letter asking for goodwill in removing these lates.

For VW, ignore the status. Internally, it is scored as a closed installment. Any installment that reports $0 is considered closed by FICO and lenders. I wouldn't mess with it.

[Anonymous]

The account was paid and it is not reporting a balance at all. I don't know why it continues to report though. Why would that be? Also, it is not showing when there was a late payment. It just had 24 month payment history which does me no good since the account has long been closed for the last 24 months. I don't understand this at all.

[guiness56]

Negative accounts, which this is, will report for 7 - 7.5 years from the DoFD.  If it has no DoFD and is negative due to lates, the lates will each fall off 7 years from their occurence.  Once the last one comes off the account becomes positive and will stay for up to 10 years from the date closed.

[RobertEG]

Creditors can continue to report on an account even after it is closed.  Whatever they report must be accurate.  They can continue to report the same status, if unchanged, forever.  Their "updated reporting" does not update any information.  However, most wont do this, as it is really a waste of time and resources to just restate the obvious.

If the account was closed with a $0 balance, then that status and balance should remain unchanged. Closed, and paid, with $0 balance, and if paid in full, NO special comment that it was settled for less than the full amount.

The old lates would remain under your payment history profile.

Accounts can remain past 7 - 7 1/2 years.  Accounts dont drop at any specified time under the FCRA..  Delinquencies on the account cease appearing in your CR after 7 years from their date of delinquency, and the account remains in your credit file.  If delinquencies on the OC account pass 7 years, then they drop from CR inclusion, one at a time, until all are gone, and then the account becomes positive. 

If the account was never charged-off or a collection reported, the DOFD has no meaning.