dumb question...?

[Anonymous]

the 7 year fall off date for a charged off credit card...is that from the day it opened or the day it closed?

[LIGHTNIN]

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@Anonymous wrote:

the 7 year fall off date for a charged off credit card...is that from the day it opened or the day it closed?

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There's no such thing as a dumb question here on the board.

Not the date opened or closed. It starts at the DOFD.

A CO (charge off) and CA (collection agency) reports up to 7 1/2years from the DOFD (date of first  default ).

The DOFD is the first missed payment or delinquent date and was NEVER caught back up again.

You can find references to these in the Freq Req Threads.....Check out the stickys at the top of the board. 

[MarineVietVet]

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@Anonymous wrote:

the 7 year fall off date for a charged off credit card...is that from the day it opened or the day it closed?

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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 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 7.5 years from the same DOFD on the OC account, and the CA cannot reset this date.

If you know your DOFD you can calculate when this CO should be gone.

From a BK years ago to:
8/09 TU-765 EQ- 783
9/09 EX pulled by lender 802
3/10 EQ- 800

You can do the same thing with hard work

Credit Scoring 101
Common Abbreviations
Frequently Requested Threads
Credit Problems Which Is Worse?
Whats In Your FICO Score

[RobertEG]

Saver, this is probably one of  the most misunderstood topics in credit scoring, and for very good reason. It is an excellent, and not a dumb question!

CAs and OCs still misapply the law.  It is essential for a clear understanding of the facts and the law, and not what they tell you.

A little history.

When the FCRA was first enacted back in 1994, all it said (FCRA 605(a)) was that collections and charges off  drop once they reach 7 years.  That was totally ambiguous as to any single date for making this calculation

So OCs and CAs used whatever date they wanted, and contiually reset CR drop off dates.  Confusion was rampant.

Congress intervened back in 1998 by amending the FCRA by addition of new section 605(c).  Reading, not only the specific language of section 605(c), but also the extensive legislative history of the act, it is absolutely, and positively clear that this sets one, single, date certain for the drop of a CO or CA from your CR.

It is 7 1/2 years from what is now conveniently now called the DOFD on the original creditor account. 

It depends solely upon your history with the OC before any CO or CA is reported.

Some creditors and CAs still try to reset CR dropoff based on irrelevant dates, such as opening or closing dates of any account, dates of payment (DOLA), date of reporting of a CO or CA, etc.,  that totally ignore the statutory revision of FCRA 605(c).

Determination of DOFD is a straight forward two-step process.

First, look at only your OC account records, and isolate the last chain of delinquenquies that preceded the CO or CA.  Last chain of delincies means simply that you were delinquent on the account, no matter if it became strung out to 30/6090+ lates, and you never came current on the delinquent debt before the CO or CA was reported.

The second step is what actually affixes your legal DOFD.  Once you have isollated your last chain of any delinquencies, then just look back in that chain, and the isolate the one, single date that you FIRST were delinquent in that chain.  That will usually be your first reported 30-day late in that chain.

That, and only that, is your DOFD.  Add 7 1/2 years to that single date-certain, and FCRA 605(c) thereafter mandates removal of any CO or CA related to that OC account debt from remaining in your CR.