Opinions on an aging derogatory LOC?

[BallBounces]

I have a derogatory closed account.  It was a real estate  secured LOC.  DOFD is August 2014.  It was also closed at that time and reports as a CO.   According too my annual reports it was scheduled to be excluded in June 2021.   It appeared on all three bureaus as recently as July of this year.   All of that more or less “makes sense”.

This is the abnormality:  Between July and now,  this entire account has stopped appearing at both TU and EQ.  As far as I recall, I did not ‘dispute’ this account.  I definitely have not requested any sort of goodwill deletion.   I have definitely not asked for EE.

You can see from my scores that EX is a little lower.  This account may (OR MAY NOT!) be part of the reason why.    I am not applying for a mortgage or car loan in the next 6 months.  I probably will not apply for a credit card.  I do want to achieve CLIs and increased scores.

My question is, would you try to dispute this or ask for EE from Experian for this specific account? 

My current thought is "no, generally EE on a very dirty file like mine is of no benefit, and the negative consequences outweigh the positive potential."   Discussion welcome.

[FireMedic1]

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@BallBounces wrote:

I have a derogatory closed account.  It was a real estate  secured LOC.  DOFD is August 2014.  It was also closed at that time and reports as a CO.   According too my annual reports it was scheduled to be excluded in June 2021.   It appeared on all three bureaus as recently as July of this year.   All of that more or less “makes sense”.

This is the abnormality:  Between July and now,  this entire account has stopped appearing at both TU and EQ.  As far as I recall, I did not ‘dispute’ this account.  I definitely have not requested any sort of goodwill deletion.   I have definitely not asked for EE.

You can see from my scores that EX is a little lower.  This account may (OR MAY NOT!) be part of the reason why.    I am not applying for a mortgage or car loan in the next 6 months.  I probably will not apply for a credit card.  I do want to achieve CLIs and increased scores.

My question is, would you try to dispute this or ask for EE from Experian for this specific account? 

My current thought is "no, generally EE on a very dirty file like mine is of no benefit, and the negative consequences outweigh the positive potential."   Discussion welcome.

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I know you know better. But when you said TU/EQ you know that brings up CK. Where are you getting this info from?

[BallBounces]

EX/ CCT reports which I pull roughly 2.5 times per month on approximately a 11 day interval.....

FWIW the full reports  which showed the expected date to fall off were from annualcreditreport in May.

[RobertEG]

You dispute when reporting is inaccurate, meaning it is incorrect.

The legal standard for exclusion of a CO or collection is no later than 7 years plus 180 days from the DOFD  (FCRA 605(c)).

Thus, a dispute would only be appropriate after the full 7 plus 180 has expired.

While CRAs usually exclude at approx 7 years from DOFD, that is an early exclusion, and is subjective.

Actual date of exclusion by a CRA is thus subject to variation, and is not fixed by law.

In the interim period just prior to termination of the full 7 plus 180 max exclusion period, requests for exclusion are thus a request for early exclusion, and not an assertion of inaccurate reporting by the CRA.

[BallBounces]

True, I should have restricted my question to EE.

The rest of the post stands. Anyone have an opinion?

[FireMedic1]

This calls for the #HeadScratcher. Nothing sticks out to you that you can recall. And then poof its gone. I dont know. Maybe celebrate they vanished off 2 of the 3? Or maybe they may pop back up at anytime. Dont want to jinx you of course. I'm baffled as much as you are. Doesnt make any sense. I'll just say I hope it sticks as it is.

[Anonymous]

OP, are you asking this from the perspective of whether you should EE to clear it because of the negatives involved, or keep it due to its age? If so, EE is the way to go - I’ve faced this twice and both times my score improved with EE, because to my thinking, the negative payment history outweighs the age factors (which we see in the slices of the FICO scoring pie too).

This past year I was able to request EE for an old chargeoff CapOne account. I debated doing it because it was a pretty old tradeline, although not my oldest. Due to the negatives of missed payments leading to chargeoff, I opted for EE. 18pts gained.

This month, same situation - old derog dating back to 2013, charged off in 2015. EE became available on TU on 10/1. I did it for the same reasons and picked up 6 points. EX will be eligible on 1/1/2020 and I’ll zap it there too.

If that’s the angle your question is coming from, then I’d advise EE based on two separate similar situations that I had. Logic would say that since payment history counts for more than age in scoring, negative payment history outweighs positive age factors for the same reason (unless it’s your oldest tradeline by 20 years perhaps).

[BallBounces]

The account is 16 years old, so it will effect AAoA, but my file is pretty thick and it will not be a killer.

My real question/thought was:

1) IS EX really at all likely to grant EE well over a year ahead of schedule

2) Is the OC likely to update the tradeline, temporarily placing a more recent derog on my file.

The fact that it disappeared from the two other CRAs at around 5 years instead of around 7 is a bit odd.  This question is pretty specific to EX I suppose.

[Anonymous]

True, it is strange to drop so early unless you’re in NY, where the standard is five years due to the Purge Law.

Asking for EE doesn’t hurt though - the worst they say is No. also, EE is handled by the bureau and although I don’t know for sure, I can’t see it triggering them to query the OC and causing an update. Never know but it seems very unlikely. I’ve asked for “early EE” before and was told No with no other repercussions.