Playing the FICO game, about my oldest accounts

[Anonymous]

My oldest account is a student loan that is 11 years old. I owed 30,000 and am down to 13,500. I could pay it all off in 6 months. But then what would FICO do? Any speculators?

More info: My next oldest accounts are two student loans that are already paid satisfactorily. Then my next oldest account (9 yrs) is a credit card I closed in wrath/rashness last year because they wanted to charge me an annual fee with a 13.9 interest rate with no rewards. Uh, I divorced them. Closed by consumer. After that, I have an auto loan I paid satisfactorily, and is 4 years old, and a credit card I opened last year.

So does it make sense to pay off this last loan ASAP, with 7.5% interest, or do it slowly so they report it for the next five years or so? Does it matter... does it just keep being reported indefinitely after I pay it?

I'm asking because I'm of the age where a mortgage will be taken out in the next few years.

5/19/08 TU:737/EQ:762/EU:784

[Anonymous]

Accounts report for 10 years after PIF then fall off. I'd pay it now. There is enough other history to fill the pot. There is a small chance since I have seen it with mortgage installments that are very long term closing it can result in a small ding. But sooner or later it has to be paid and why pay all that interest if you can close it now?

Message Edited by ilovepizza on 05-21-2008 02:28 PM

[Junejer]

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@Anonymous wrote:
Accounts report for 10 years after PIF then fall off. I'd pay it now. There is enough other history to fill the pot. There is a small chance since I have seen it with mortgage installments that are very long term closing it can result in a small ding. But sooner or later it has to be paid and why pay all that interest if you can close it now?

Message Edited by ilovepizza on 05-21-2008 02:28 PM

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DCO, Fed. SLs seem to be the exception to the 10 yr. fall off rule. I paid my SL off in 1993/4 (within a year of graduating college) and it remains on my CRs, as my oldest account. I have also read other posts that state the same thing.

[Anonymous]

Thank you!

I wasn't sure how long good accounts stay, and I certainly didn't want to be left with a short history.

[smallfry]

Sounds like another satisfied Capital One customer.

[Junejer]

LOL Smallfry. I just banished my CapOne bus card to the sockdrawer, even though it's at 0% int. They refuse to consider a CLI. There is basically NO CL at all. Yet, they continue to send me offers to get more cards so that all of my employees can share in "the wealth." If I had four employees and we all needed to fill up, the card would be just about maxed.

It's not worth the hard INQ to see if they will give me a CLI.

[RobertEG]

While it is apparrently CRA policy to drop inactive revolving accounts in good standing after 10 years of inactivity, there is no requirement that they must report for 10 years, and could drop at any time

[smallfry]

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@RobertEG wrote:

While it is apparrently CRA policy to drop inactive revolving accounts in good standing after 10 years of inactivity, there is no requirement that they must report for 10 years, and could drop at any time

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I had a few drop from TU and EQ after 8-9 years not EX for some reason although it could happen with them as well.

[Junejer]

I have had a perfect MBNA card (closed in 2003) drop sometime within the past three years from all three.

[RobertEG]

Unfortunately, the FCRA only regulates how long a derog can remain on your CR and thus hurt your score, and not how long an inactive account in good standing must remain for credit age purposes, and thus help your score.  Kinda illogical? Hmmmmm.

I think it is an outrage that a CRA should be permitted to drop a major factor, such as an old account IN GOOD STANDING, from  your credit history just becuase of some totally arbitrary "10 year inactive" status.  But that is the current name of the game.  And it is not regulated.

Only consumers, through action, can force an amendment to the FCRA to simply mandate that any account closed in good standing must remain in ones credit report.  Simple, logical, and fair.

Message Edited by RobertEG on 05-21-2008 09:08 PM

Message Edited by RobertEG on 05-21-2008 09:11 PM