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Info on re-aging old delinquencies and credit - The Bills.com Blog
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Info on re-aging old delinquencies and credit
Question: My question is in regards to a credit card, opened in 2000 - closed by the issuer due to over creditlimit and few missed payments in '04. I recently paid off that debt and the issuer is giving me the opportunity to re-open the account. My current score is between 700-720, and I have more recent credit cards (less than one year) with better interest. Is it goingto make any difference in my score if I re-open the account, considering that they are one of my oldest creditors?
Answer: It?s really nice to hear from a reader who has been through the financial ?crunch,? has weathered the storm, and is headed back up obviously much wiser for the ordeal.
I need to ask how the creditor in question is reporting the debt now. I?ll assume they are reporting the delinquencies as they occurred, but with so high a credit score, I may be wrong.
I believe they are offering to ?re-age? the account for you, which the Comptroller of the Currency allows on a very limited basis. I would
take advantage of this offer, which the creditor is likely extending in exchange for your continuing to do business with them after you pulled the account out of default and prevented their loss.
With the re-ageing, the history of the account will be reported as if no delinquencies ever took place. Those missed payments can never be reported again. That should be a big positive for your credit score, and it will be at no cost to you, since you have already cleared the account anyway. And, just because you have reopened the account doesn?t mean you ever have to charge on it if the regular rates are out-of-line and not competitive
with your newer cards? rates.
However, if the trade line is showing delinquencies still and they will not be "re-aged" then you will certainly not want to re-open the account... as in this scenario you will be eager for the seven year statue of limitations on credit reporting to come up and have these delinquencies drop off of your credit report.
If you would like more information, please visit our credit resource page at:
http://www.bills.com/credit/
We hope that this helped you to Find, Learn, and Save!
Best,
Bill
www.bills.com
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