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Where does my old credit go?

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lmohearn
Established Member

Re: Where does my old credit go?

Thanks Conductor!

 

Yes, we have a MOUNTAIN of debt to tackle. Little by little, step by step.......

 

Do not buy an eight unit residential rental property right before the economy tanks, I only wish we'd had a crystal ball. 

 

At one point the place was half empty, only 4 out of the 8 were rented. But we still had bills to pay so we kept things going with our good credit and high credit card limits. The old "you gotta do what you gotta do to survive". 

 

Now we are trying to refinance with cash out to try and turn the ship around, lots of equity that no one wants to lend back to us. Worst commercial borrowing situation in a long, long time. I know well seasoned investors who can't borrow any money in this lending environment. 

 

Lele

Message 11 of 15
flan
Regular Contributor

Re: Where does my old credit go?


@lmohearn wrote:

Well, some accounts you can't help but close. Paid off car loans, mortgages, credit cards that start charging an annual fee that makes it not cost effective to keep them, etc. 

 

It would seem that certain "big ticket" debts like car loans and mortgages should stick around longer than 10 years. T


 

Why should a lender care that ten years ago, you paid of a car loan?  What they care about is what you're going to do if they give you credit, and behavior a decade ago isn't terribly relevant.  If that's relevant, how is not relevant that ten years ago, you had a carrepossessed?  Long past behavior is a poor predictor of future behavior.  It's much more relevant what you've done lately.  

Message 12 of 15
RobertEG
Legendary Contributor

Re: Where does my old credit go?

In my opinion, it's not the derogs that are of concern.  Creditors most likely arent concerned, and consumers certainly are not negatively impacted.

 

However, a category FICO scorinig purports to reflect the oldest account and average age of all accounts.

 

Aribitrary deletion of the oldest accounts makes that number no longer reflective of what it purports to show........

Message 13 of 15
lmohearn
Established Member

Re: Where does my old credit go?

 

However, a category FICO scorinig purports to reflect the oldest account and average age of all accounts.

 

Aribitrary deletion of the oldest accounts makes that number no longer reflective of what it purports to show........


 

Exactly! 

 

I don't think a lender will care about a car loan that I paid off 10 years ago. But when my report shows the avereage age of my credit accounts is only 7 years old, when its really much longer, is a misrepresentation of how long I have been actively using credit responsibly. I know no system is perfect, but this system is inaccurate. I don't think all the details of an old account should be listed, but that it should be counted somehow - good or bad. If I have 18 closed acounts, 17 of them perfect one with a 30 day late, they should all count. The older the imperfection, the less it counts. 

Message 14 of 15
guiness56
Epic Contributor

Re: Where does my old credit go?

I agree.  However, it is the CRAs that make that decision of when to remove older, in good standing accounts.

 

There is no law that says how long they can stay only how long a negative can.

Message 15 of 15
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