@jropeter wrote:
Hey guys,
I just wanted to get some clarification on something regarding charged-off accounts. I read somewhere on these boards that with charged-off accounts, the account itself is not deleted based on expiration of any credit report exclusion period. Is this true? If it is true, then what makes those with a charged-off account have a better credit score: the dates of delinquency aging out and removing themselves? Thanks for any clarification you can provide!
Usually you'll see COs report up to 7 to 7.5 years from the DOFD of the debt and then drop. They cannot report as a CO for longer than that period per the FCRA. Sometimes you'll get lucky. The lates will start deleting and the CO reference will totally disappear by 7 years, and then report as a positive TL beyond that period. It's up to the creditor. Back in the day I had a Zales CO with a DOFD of 1997. It went unpaid until 2000 or thereabouts. Then I paid it off. Sometime by 2004 it reported as a positive closed TL and that continued to report until 2011 when it decided to disappear. It stayed longer than it should have, but the history helped and I wasn't complaining any. Most of my other COs dropped by 7 yrs.
