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The Affect Of Old Credit Accounts On Your Credit Score - The Bills.com Blog
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The Affect Of Old Credit Accounts On Your Credit Score
Wednesday, Aug 5, 2009
Question: I have several accounts over 7 years old on my credit report that states I was late but the accounts were paid as agreed and closed. Will deleting these accounts raise my credit score?
Answer: Paying off your debts will certainly have a positive impact your credit score. While no one can tell you precisely how much your score will be changed (the Fair Isaac Company, the producer of FICO scores, doesn't release the algorithm it uses for scoring), a general overview of how your score is determined can be found on bills.com.The rules dictating when listings must be removed from your credit report apply only to derogatory items; positive credit items, such as credit card debts which you have kept current, can remain on your credit reports indefinitely. For derogatory items, the date on which an account falls off of your credit report is calculated as seven years from
the date the debt was charged-off by the lender; the date on which you opened the account is irrelevant. For example, if you opened an account in 1985, and stopped making payments in 2003, then the account should fall off your credit report sometime in 2010.
The new "reported date" should not affect the date on which the account will be removed from your credit report. Again, the seven year time period runs from the date on which your accounts were charged off by the
The new "reported date" should not affect the date on which the account will be removed from your credit report. Again, the seven year time period runs from the date on which your accounts were charged off by the
creditor. If you think that any item is appearing on your credit report incorrectly, you should consider disputing the items with the major credit reporting agencies. You can read more about how to dispute inaccurate credit report items by visiting FTC.gov.
Learn more about credit, credit reports, and credit scoring, on Bills.com.
I wish you the best of luck in your efforts to repair your credit report, and hope that the information I have provided helps you Find. Learn. Save.
Best,
Bill
www.bills.com/blog/
Learn more about credit, credit reports, and credit scoring, on Bills.com.
I wish you the best of luck in your efforts to repair your credit report, and hope that the information I have provided helps you Find. Learn. Save.
Best,
Bill
www.bills.com/blog/
Also, make sure to get a free financial health check-up with Bills IQ!
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