How do you go about disputing # of years of credit?

[Anonymous]

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RobertEG wrote:

I think the point that Cheddar was making is the calculation of the score is not based on the FICO model, it is based on what is in the credit report that is run through that model.  FICO does not retain the date used to calculate your score, the CRAs do.  FICO software will look at the oldest account that the CRA pumps into it.  It is not FICO programming.

Abuses are with the CRAs, not FICO itself.

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Thank you for summing it up, Robert.  That is exactly the point I was attemping to make.

[Madison]

I called TransUnion to dispute the length of credit history. I had a previous mortgage account which opened in 1978. The last report date was April, 2002 so it should have had 10 years to stay on report. TransUnion said the only way I could get it on my credit report like it is on Equafax and Experian was to contact the originator of the loan and have them report the loan information to TransUnion. I called the mortgage company and they are requesting loan information to be sent back to them so they can then report the loan information to TransUnion. I should have a couple of more years since there are no blemishes on this report and I understand that stays on your credit report for 10 years.  Stay tuned....they say it will take about 7-10 days for the information to come back. The person I talked with at the bank said he will call me when they sent info to TransUnion. See Chedder, where there is a will, there is a way!

Message Edited by Madison on 04-18-2008 12:28 PM

[Anonymous]

Cheddar/Robert:   The point I am making is that based on the way FICO's formula works, it should not be called "Length of Credit History" but "Length of Credit History with your oldest creditor".   The formula suggests that what lenders like best (i.e. minimal risk) is long term relationships with creditors, since terminating these relationships only allows them to keep the TL on for 10 addt'l years.

Compare:

I open a Citi credit card in 1987.  It is still open in 2008 (Oldest TL is 21 years as of today).

vs.

I open the same card in 1987.  It is a vanilla card with no rewards benefits.  Better rewards cards come along in the '90's and I open 3 or 4 of them starting in 1995, but close the Citi "vanilla" card as it doesn't benefit me to charge on this card like it does the others.  SInce I closed the Citi card in 1995, it falls off my report in 2005 and that 1987 history is lost.

Now, my oldest TL Is 1995, or 13 years as of today.   

How exactly does this make me a more riskier borrower?

Message Edited by Boscoe on 04-20-2008 07:04 AM

[MattH]

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@Anonymous wrote:

Robert, unfortunately yes, that's exactly what it means. I agree with you that it's not entirely fair.

"Length of credit history" is sort of a misnomer. More accurate would be something like "length of credit history on all accounts either currently open or closed within the last ten years."

BTW, it's still possible, of course, to have a very, very long credit history by maintaining a single account for decades.

Message Edited by cheddar on 04-17-2008 04:38 PM

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This is the main reason I keep my AMEX Gold card: the account was opened in 1982 and is my oldest account (next oldest is a Citicard active since 1987). Like it or not, stability DOES correlate with lower risk to lenders.

[RobertEG]

Yo Boscoe!!  You are singing to the choir!

But we dont write the musical, and often whismical, scores.....

[MidnightVoice]

For many people their oldest account will probably be their mortgage!

And don't forget, FICO was developed before the current "shop around" days.

Finally, it is quite possible that having accounts much older than "x" years would make very little difference to the alogarithm.  I don't imagine there are many people who close all their accounts and get zero credit for the next 10 years!

It is a misnomer, I agree, but I am not sure how much practical effect it has IN MOST CASES.  And FICO is statistics