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

[RobertEG]

If you do nothing, then no account deletion will occur.

CRA exclusion will only result in removal of the delinquencies, and not the entire account, since it currently has a non-delinquent current status.

Account deletion would only occur if the creditor agreed to report its deletion.

Account deletion will result in loss of the account in all aspects of scoring, including payment history, length of credit, and % util.

Of those, payment history impact is years old, and soon to be removed.  

% util scoring is now postive, but inaccurate.  If you wish to continue to rely upon inaccurate reporting to boost your % util scoring, then not pursuing deletion would be my advise.

However, I cannot advise to rely upon inaccurate credit reporting, regardless of a postive scoring benefit.

The currrent account status should be closed, and the creditor was required, when they discontinued further charges on the account, to update their reporting to closed.  FCRA 623(a)(2).

When the reporting is corrected, the account will be removed from % util scoring, as a closed revolving account with $0 balance is no longer included in your scoring.  Thus, that inaccurate scoring benefit will be removed.

My advise is to either to accept their good-will offer to delete the entire account, or else get the account updated to accurately show as closed, and accept its removal from your % util scoring. 

Anything else is simply inaccurate reporting.

[Anonymous]

You mentioned you'd like to get a car.  Do you NEED it right now, or can you wait a couple more months?  If you can wait, just wait for the lates to drop.  If not, 705 will get you a pretty solid rate for a vehicle.  You can always refinance when your scores improve.  

On a related note, it sounds like you have some pretty substantial CC debt otherwise.  Another way to improve your score would be to pay some of that down.  Going back to NEEDING a car or not, if you don't, should you really be buying one?

[909]

Hello, how is deleting an account that did exist not inaccurate reporting? RobertEG suggests that would be acceptable but it sure sounds like inaccurate reporting. It seems that the account existed so it can’t be deleted w/out falling into the category of inaccurate reporting.

RobertEG, I’m hoping that you can explain this as I must be missing something.

[RobertEG]

Deleting of an account simply means that the furnisher has decided to no longer maintain the reporting.

It is not a statement or reporting that anything in their prior reporting is inaccurate in any way.

They may simply decide that they no longer wish to assume the time and expense of promptly reviewing the account for any changes that would require updated reporting.

Credit reporting is initially totally voluntary, and deletion of any prior reporting is a removal of that reporting.

The FCRA only mandates reporting when applied to previously reported information, with required reporting limited to the the mandate to promptly report any correction of previously reported information as becomes necessary to maintain its current accuracy.  See FCRA 623(a)(2).

If one asserts that deletion of an account by a creditor is a violation of the FCRA, that interpretation would require some case law precedent in order to establish that interpretation as an accepted interpretation of the statute.

There is no appellate case law, at least of which I am aware, that affirms any interpretation that deletion of an account is a violation of the reporting provisions of the FCRA.

You are certainly entitled to pursue such an interpretation.  However, in my opinion, it is unlikely to prevail.

[Anonymous]

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@909Hello, how is deleting an account that did exist not inaccurate reporting?

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That wouldn't be inaccurate reporting, it would be no reporting.  A creditor can make the decision not to report any account if they would like, as they are not required to report it.  Inaccurate reporting means reporting something that isn't correct.  If a creditor chooses not to report an account at all, by definition that can't be inaccurate reporting as it's not being reported in the first place. 

[NRB525]

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@glaucuswrote:

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.

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OP do you know which score your auto loan source will pull? You refer to FICO 8 here, but it is unlikely that is the same as will be used. 

Have you checked what that auto score is now? 

The high utilization, now and later, will likely be a significant factor in your realized rate. Other cards with their own lates may be a factor on the other scoring models. A move of 20 points on FICO 8 seems like a small move for the amount of discussion here. Leave it to age off, or request deletion, but I suspect neither will make much difference in your auto loan app. 

Enjoy the updated car car when you get it  

[Anonymous]

Getting accounts removed through an effective investigation strategy through the credit bureaus is a common credit restoration practice

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@909wrote:
How do you plan to delete the account?

As stated above the lates will drop off after 7 years, the account will remain on you report until about 10 years after it was closed (but the lates disappear 7 years after the lates occurred). Can’t you wait a few months for the lates to disappear?

The idea of your deleting the account is unfamiliar to me.

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Credit resportation is a very common practice among people who don't want to wait until the credit bureaus meet their statues for removing aged information