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Old 01-13-2018, 11:49 AM
CenTexLyn CenTexLyn is offline
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Originally Posted by MissStar View Post
A lot of debt has statute of limitations. For some debt (in some states) after 7 years it falls off your report (or you have to request it to be deleted). But this only works if a penny hasn’t been paid towards it. First step would be to get rid of any debt that’s past it’s legal limit.
This is not entirely correct. First, while it is true that a charge-off will generally fall off seven years after the date of the first major delinquency immediately preceding the charge-off event, this does not hold true if there has been litigation that results in a judgment. Judgments can live for many years, and in many jurisdictions, are also renewable AND have interest accumulating from the date of judgment.

Secondly, payment towards the amount is not always what controls for litigation purposes. There is a lot more than simple reporting issues to be aware of.

There are very specific reasons why I point people towards creditboards dot is the credit experience equivalent of the prison-related knowledge that exists here.

One needs to be acutely aware of WHY they take a particular action on credit matters lest it compound the problems.

I would disagree with the guidance to close down lines. Where an account is open and reporting, it makes sense to keep it open as long as there are no fees being racked up. Scores take into account utilization as well as age of accounts. It is far easier to get credit when the report shows some older accounts than if one has scrubbed it to within an inch of its doesn't take a lot of accounts to have a score over 750, but you won't get there with none showing. And yes, some sites will point to 800 as the goal, but the reality is anything over 750 is going to have you in the top tier of most underwriting considerations...

Last edited by CenTexLyn; 01-13-2018 at 11:51 AM..
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