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Better to delete 90-120 days late, but open super high credit card?

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Anonymous
Not applicable

Re: Better to delete 90-120 days late, but open super high credit card?

A few things here OP.  One, if you look at a hard-copy credit report, does it show the account as being open or closed?  Just because an account is reporting "OK" every month and is updating every month doesn't mean it's open.  I've had many closed accounts on my credit report that continue to receive monthly updates for whatever reason.  If the account is closed, the credit limit should not be factored into your overall utilization at this time. 

 

If the account is indeed open and that credit limit is being factored in and lowering your current utilization percentage, getting rid of your only dirty account will do more for your score than taking a utilization increase from 50%-75%.  You may see a 40-50 point drop from the utilization increase (maybe less) but you'd stand to see a 60-80 point gain from going from a dirty file to a clean one.  Your net change would be a positive score change, not a negative one.  I think it could end up being anything from a complete wash (no score change) to a gain of 20-30 points.  That's my opinion.  Even if it was a complete wash, going from a dirty to a clean file is an awesome thing.

 

You could also request early exclusion of the late payments since they are due to fall off soon anyway.  Some people have reported success in doing so.

 

Step 1 of course is to look at your hard copy credit report and see how the account is being represented currently, as in open or closed.

Message 11 of 28
glaucus
Established Member

Re: Better to delete 90-120 days late, but open super high credit card?

Thanks very much for your assessment! That is what I was looking for.

 

Yes, the account is closed according to Capital One. There is no balance, and no way to re-open the account. But also, Yes the account is showing as open on the CR. I know that this makes no sense, but it is the fact. I am hoping to get a new car in the next few months, and so I really wanted to improve my score. If the old lates will drop off, that is fine, but it won't happen soon enough. I tried asking for a good will help, and no one was wanting to help me. In my MANY calls to transunion, I was floored by just how inept they all were. Not one person spoke English as a first language, and every time I asked a question or even just made a comment, all I got was the person re-reading the same standard stuff they saw on their screen. Reallt scary about who controls these reports!

 

In any event, it sounds like if I can get the account removed, that would be my best bet for a better score and better overall report.

Message 12 of 28
Anonymous
Not applicable

Re: Better to delete 90-120 days late, but open super high credit card?

I would say this is a case of pick your poison. 

 

You want an immediate gain in your score. Having it removed completely will likely do that since 90/120 day lates are a major derog. 50% to 70% util hurt a lot too but not as much. 

 

However, the optimal route would be to wait it out and do your auto loan in 6 months or whatnot. The account will be good when those lates naturally fall off. Once you delete the TL then all those positives are lost forever. This account will be great for you to be kept on the report helping you not only with the auto loan (after the lates fall off), but also for many more years.

 

Up to you really...

Message 13 of 28
Anonymous
Not applicable

Re: Better to delete 90-120 days late, but open super high credit card?

What "positives" are you speaking of above?

 

 

Message 14 of 28
Anonymous
Not applicable

Re: Better to delete 90-120 days late, but open super high credit card?

He said the TL has been reporting as paid and opened ever since these lates and it being "closed". The positive here is pretty obvious. Once the lates fall off the account will be lowering his util by 25% (deleting TL will remove this), not taking away points since lates will be gone, showing years of on time payments (deleting TL will remove this), increasing AAoA (deleting TL will remove this), etc etc... Not sure what you mean by asking that BBS it seems apparent.

Message 15 of 28
jamie123
Valued Contributor

Re: Better to delete 90-120 days late, but open super high credit card?


@glaucuswrote:

Here's a question I can't seem to get a good answer on!... I have a credit card that shows several 90 to 120 day lates from six to seven years ago. It is technically closed, but is still reporting as open and being paid on time ever since the late payment were back to on-time (nearly 7 years ago). It has a very high limit, around 25% of my total credit. Basically, I have the option of getting it deleted from my reports because of the 7-year late removal law. BUT, because it makes up such a big percentage of my overall credit, I am wondering what I should do? I am at 50% utilization now, and will jump to nearly 75% if I get it deleted, but many have told me that an account showing lates of 90 to 120 days is hurting my score too much. Any ideas??


First off...This should only be even discussed if it is your only baddie and once dropped would leave you with a spotlessly clean file. If you have any other baddies on your reports your scores probably won't climb much if you lose this account.

 

It would really help if you gave us more information:

  • Is this your oldest CC?
  • How many CCs do you have and their ages?
  • What is your AAoA?
  • What are your scores and where are you getting them from?
  • Do you have any open or closed installment loans on your reports?

Starting Score: EQ 653 6/21/12
Current Score: EQ 817 3/10/20 - EX 820 3/13/20 - TU 825 3/03/20
Message 16 of 28
glaucus
Established Member

Re: Better to delete 90-120 days late, but open super high credit card?

This is one of my oldest cards, but I have 2 others that are just as old. I have 6 open cards total, ranging in age from 15 years old to 2 months old (that is a Walmart card). This is the worst bad account. I have 2 others, but they have only 1 and 2 30-day past dues respectively, nothing more past due than that. I have one open mortgage and one closed (it transfered to the new one). No lates on either. AAoA is 11 years. Score is FICO from Discover card, at 705. I am hoping for closer to 725. The reason I am thinking of having this account deleted (Yes, Capital One said they would do that) is because the 120 day lates range from 6 years old to 7 years old. If they drop off naturally over time, I won't have a clean report for a year, and I wanted to improve my score within the next few months.

Message 17 of 28
marty56
Super Contributor

Re: Better to delete 90-120 days late, but open super high credit card?

Strange that they would delete the account and not do a GW.  Your other lates - are they recent and who are they with.

1/25/2021: FICO 850 EQ 848 TU 847 EX
Message 18 of 28
glaucus
Established Member

Re: Better to delete 90-120 days late, but open super high credit card?

My other lates are with Chase and Bank of America. I pleaded with Capital One to do a good will, but basically because they had no code or protocol for that, they were unable. (Typical "red tape" BS!) But, they could tell the credit bureaus to remove the account because it is too old to be reporting. This is based on the fact that the first date of delinquency is actually at 7 years now. Apparently, Capital One is notorious for not reporting this date accurately, or even at all. According to transunion, without an exact date, they will arbitrarily calculate a maximum date of delinqency, but it is always more recent that what it is in reality. The most ridiculous thing is that even though they had their own reporting showing I was late 7 years ago, because they did not have an "official" date of first delinquency from Capital One, all they could do was rely on their own maximum date. The whole thing is a crock, yet they hold our financial furtures in their hands!! That's why I contact Capital One and pleaded my case. The only option for me is to have it removed.

Message 19 of 28
Anonymous
Not applicable

Re: Better to delete 90-120 days late, but open super high credit card?


@AnonymousHe said the TL has been reporting as paid and opened ever since these lates and it being "closed". The positive here is pretty obvious. Once the lates fall off the account will be lowering his util by 25% (deleting TL will remove this), not taking away points since lates will be gone, showing years of on time payments (deleting TL will remove this), increasing AAoA (deleting TL will remove this), etc etc... Not sure what you mean by asking that BBS it seems apparent.

None of what you said above really has any bearing on his score and if any of it does, without additional information it can't be quantified.  Unless you know the limits on all of his other cards, there's no way of knowing if a utilization change related to this account would cross any threshold and have any scoring impact.  If the lates are gone, his score goes up regardless of whether or not the account is still present.  Having it present with years of on-time payments (verses having it gone) doesn't matter when it comes to score.  The removal of the account may or may not have an impact on AAoA with respect to scoring.  He's already at 11 years AAoA and anything over 7.6 years or so is simply gravy, so if his AAoA dropped from say 11 years to 8 years, it wouldn't impact his score adversely at all.  All I'm saying is that more information is needed here before a blanket statement can be made regarding the "positives" that account may or may not have for the OP.

Message 20 of 28
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