@Anonymous wrote:
Hello all,
My husband and I are looking to purchase a home fairly soon and are needing some advice. We were looking over my husband's credit report with a real estate agent this morning and a few of the things he mentioned to us did not seem correct to me. My husband defaulted on a car loan in 2003 and our real estate agent mentioned that this debt could stay on his credit report indefenitely since a lot of debt collectors change the date of activity to a recent date in order to continue collecting on the debt. He pointed out to us that this debt was last reported to the bureaus this month, and that we had to wait 7 years from that date until this would be removed from our report. I later noticed that underneath the "date reported" were the letters "DLA", which I discovered meant date of last activity. This date was listed as 02/2005. Does this mean that the CA will stop reporting this debt 7 years from the DLA, or is it true what my real estate agent mentioned about this being reported indefenitely, and that CA reporting debts for extremely long periods of times is actually something quite common and very hard to fix....
I'm also keeping in mind that our real estate agent wants us to go to a debt restoration agent to help us fix our credit; however, we're not sure if we should even pay back this debt as we were assuming it would be dropping from our credit reports fairly soon (w/in 2 years the most).
Hello and welcome.
Your agent is........how shall I say this.........less than correct.
Here is how and when derogs drop from you CR, and are thus no longer included in FICO scoring.
Monthly delinquencies under an OC account drop at 7 years from their individual date of delinquency. The date of first delinquency (DOFD) has nothing to do with these drop-off dates. They drop from their own individual dates. So look at each prior OC reported monthly derog date, and simply add 7 years.
If the OC subsequently reports their account as a charge off, that is a totally different and additional post to your CR. Their post as a charge-off will remain in your CR for up to 7.5 years from the DOFD on the OC account, which is the first 30-day delinquency you had on the account, and disregards any later 60/90+ delinquencies that followed. That cannot be reset.
If the OC then refers the account for collection, and a CA posts to your CR, the drop-off date of their collection reporting is the same as that of a CO. It is up to 7.5 years from the same DOFD on the OC account, and the CA cannot reset this date.
While it is true that any new activity can and does make a negative account look more recent and therefore can hurt your score NO ONE can report past the CRTP of 7-7.5 years. Having said all this the original debt never goes away and collection efforts can continue but generally nothing will show on your reports past CRTP with a few exceptions:
FCRA 605(b)
(1) a credit transaction involving, or which may reasonably be expected to involve, a principal amount of $150,000 or more;
(2) the underwriting of life insurance involving, or which may reasonably be expected to involve, a face amount of $150,000 or more; or
(3) the employment of any individual at an annual salary which equals, or which may reasonably be expected to equal $75,000, or more.
One last thing. You don't need to pay anyone to repair and rebuild your credit. You can do it yourself with help and advice from some very smart people (not including myself) right here.
Sorry for the long post. I'm generally a man of few words.
From a BK years ago to:
9/09 EX pulled by lender 802
3/10 EQ- 800
6/10 TU -772
You can do the same thing with hard work
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