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Estimate of Score Effect: Closed Loan Dropping off After 10 Years

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Anonymous
Not applicable

Estimate of Score Effect: Closed Loan Dropping off After 10 Years

I am 37 yrs old and have 1 active credit card.  My score at each bureau is between 710-795 with Experian being 795.  I have never missed a payment, but only this month understood utilization.  I raised my score 27 points by leaving a $14 balance one day before payment due date thanks to Experian simulator and advice from the forum.

 

The active credit card I opened in 2017.  I had another credit card from 2003-2012 but closed it and used a debit card for 5 years (I didnt know about closing accounts).  That account, which had perfect payment history, has subsequently fallen off the Credit Reports at all 3 bureaus.

 

I have 3 closed accounts related to School loans that had perfect payment history.  All three were Zeroed Out between Sept 2011 and Feb 2012.  Feb 2022 will mark 10 years since the loans were closed. 

 

Im assuming these accounts will fall off at 10 years.  Any guesses what my score will look like when it happens?  I wasnt necessarily considering opening a new loan before 2022 but am newly concerned that when these accounts drop off, I will have a file that has a 4 year history.  

 

The only potential silver lining (maybe?) is that I have been on the same lease since 2012.  While it does not seem apparent there is any third party willing to report FICO 09 rental history of 8 years, there will be no reason I am not able to report the standard 2 years prior.

4 REPLIES 4
SouthJamaica
Mega Contributor

Re: Estimate of Score Effect: Closed Loan Dropping off After 10 Years


@Anonymous wrote:

I am 37 yrs old and have 1 active credit card.  My score at each bureau is between 710-795 with Experian being 795.  I have never missed a payment, but only this month understood utilization.  I raised my score 27 points by leaving a $14 balance one day before payment due date thanks to Experian simulator and advice from the forum.

 

The active credit card I opened in 2017.  I had another credit card from 2003-2012 but closed it and used a debit card for 5 years (I didnt know about closing accounts).  That account, which had perfect payment history, has subsequently fallen off the Credit Reports at all 3 bureaus.

 

I have 3 closed accounts related to School loans that had perfect payment history.  All three were Zeroed Out between Sept 2011 and Feb 2012.  Feb 2022 will mark 10 years since the loans were closed. 

 

Im assuming these accounts will fall off at 10 years.  Any guesses what my score will look like when it happens?  I wasnt necessarily considering opening a new loan before 2022 but am newly concerned that when these accounts drop off, I will have a file that has a 4 year history.  

 

The only potential silver lining (maybe?) is that I have been on the same lease since 2012.  While it does not seem apparent there is any third party willing to report FICO 09 rental history of 8 years, there will be no reason I am not able to report the standard 2 years prior.


I believe that you will lose some points when your age of oldest account and average age of accounts drop but I don't think it will be drastic, and you will get those points back if you continue doing what you are doing, which is great.

 

Also, there's no telling when they're going to drop off; it might be years from now. If your AoOA and AAoA are 6 years at the time, the point drop won't be terrible.


Total revolving limits 741200 (620700 reporting) FICO 8: EQ 701 TU 704 EX 685

Message 2 of 5
Anonymous
Not applicable

Re: Estimate of Score Effect: Closed Loan Dropping off After 10 Years


@Anonymous wrote:

I am 37 yrs old and have 1 active credit card.  My score at each bureau is between 710-795 with Experian being 795.  I have never missed a payment, but only this month understood utilization.  I raised my score 27 points by leaving a $14 balance one day before payment due date thanks to Experian simulator and advice from the forum.

 

The active credit card I opened in 2017.  I had another credit card from 2003-2012 but closed it and used a debit card for 5 years (I didnt know about closing accounts).  That account, which had perfect payment history, has subsequently fallen off the Credit Reports at all 3 bureaus.

 

I have 3 closed accounts related to School loans that had perfect payment history.  All three were Zeroed Out between Sept 2011 and Feb 2012.  Feb 2022 will mark 10 years since the loans were closed. 

 

Im assuming these accounts will fall off at 10 years.  Any guesses what my score will look like when it happens?  I wasnt necessarily considering opening a new loan before 2022 but am newly concerned that when these accounts drop off, I will have a file that has a 4 year history.  

 

The only potential silver lining (maybe?) is that I have been on the same lease since 2012.  While it does not seem apparent there is any third party willing to report FICO 09 rental history of 8 years, there will be no reason I am not able to report the standard 2 years prior.


@Anonymous I think you should do the same thing now that you should've done years ago, open a couple more revolvers and let them age. No AF and pick ones that fit your spend. Had you opened a couple years ago, you wouldn't have this problem now, so if you open up a couple up now and let them age, this will fix itself with time. 

however those accounts may or may not drop at 10 years. I've still got an account holding on from the 90s that should've dropped long ago. So you may be worried for nothing, but if they do, yes you'll lose some points, but they'll come back with time. Meanwhile you can add points by adding a couple revolvers anyway, while at the same time establishing an age buffer. 

i'm not sure but I thought there were services that did report the rental info, maybe another member can chime in on that. 

Message 3 of 5
lyTENciL
Regular Contributor

Re: Estimate of Score Effect: Closed Loan Dropping off After 10 Years

@Anonymous Welcome to the myFICO boards! Lots of nice helpful folks here. Just want to say I'm in the same boat as you. One old account that I closed 6 years ago, then a long gap until I started opening revolvers and an installment over the past 16 months. When my closed account falls off, my AoOA will go from over 20y --> 5y (ouch). I too am wondering about and dreading the magnitude of my point loss. Learn everything you can about building a strong profile and optimizing your scores, get some bank credit cards but don't go crazy on the applications just yet, and you'll set yourself up to regain those points.

 

I posted my timeline in detail here: https://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/Our-Forums-FICO-High-Achievers-Who-has-at-least-one-FICO-Score/m-p/6223891/highlight/true#M182117 


FICO (12/22): EX8 838. TU8 826. EQ9 837.
Profile: Clean/thick/aged/new. Revolvers: 7 open, 1 closed. 1 Install.
AoOA/RA 20y. AAoA 4.5y. AoYA/RA 6m. TCL $128.3K.
Message 4 of 5
Anonymous
Not applicable

Re: Estimate of Score Effect: Closed Loan Dropping off After 10 Years

It's sort of impossible to estimate where a score will be in 10 years, as no one can predict the profile changes that will happen during that time.  Sure you can figure which accounts likely will no longer be present on your report, but you definitely can't predict how many / what types of accounts will be added to your report over the next decade.  Adding a couple of revolvers though is good advice in order to ensure your file doesn't ever cross the threshold from thick to thin at any point in the future and a thick file can absorb file changes better than a thin one.

Message 5 of 5
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