credit score

[Mendelssohn]

thanks, I just wonder why ppl are always scared of closing cards thinking it will hurt credit score

I would never recommend closing your oldest account if you can avoid it.

Closed accounts continue to contribute to AAoA (Average Age of Accounts) and MAY report up to 10 years from the date of last activity.

A 1 year old account closed today will be counted as 2 years old by FICO a year from now. It continues to age.

I say MAY contribute because closed accounts often disappear earlier than 10 years. EX tends to hold on to everything, but EQ and TU often drop closed accounts sooner than that, especially EQ.

For credit age, FICO considers:
1. AAoA
2. Oldest account
3. New accounts (most/all of the damage is gone after 6 months)

Number 2 helps a lot more than 1. I've seen people with FICOs in the 800s with an oldest account of 20+ years and an AAoA of less than 3 years.

[D93]

AAoA goes by average age of CL or average age of account no matter the CL's?

[Mendelssohn]

Common misconception. Dan has mentioned it a bunch of times in his DDMS posts.

ETA: It could hurt you though if it's one of your older accounts because of the average account length factor. But it'll still be on your report for 10 years after you close.

AAoA counts open and closed accounts.

The only negative about closing your oldest account is that it will fall off on or before 10 years.

[Mendelssohn]

AAoA goes by average age of CL or average age of account no matter the CL's?

It is based in the date the account was opened.

Credit limits are not directly counted by FICO.

Remember that utilization is based on percentage, not limits.

[D93]

It is based in the date the account was opened.

Credit limits are not directly counted by FICO.

Remember that utilization is based on percentage, not limits.

Thank You

[yitrap]

@mendelssohn and others
How long does it take for credit report to update, specifically when doing something like this...

So if my Chase card closed at a high balance I could pay in full and get it to report mid-cycle at $0?

Meaning if I applied yesterday and credit report showed high balance could I apply day after full payment posts and credit report would have that information already or does it take time and if so how long.

[yochiek93]

You have any contact info for Honda financial. Is there anyone on this board who does this kind of stuff (with compensation) of course!

Here's contact info for Honda financial
http://www.hondafinancialservices.com/contact-us

[Mendelssohn]

@mendelssohn and others
How long does it take for credit report to update, specifically when doing something like this...
Meaning if I applied yesterday and credit report showed high balance could I apply day after full payment posts and credit report would have that information already or does it take time and if so how long.

EX, EQ and TU take different lengths of time to update. EX is normally 1-2 days with TU taking up to a week.

The only way to know for sure is to look at your reports. That's one reason why most credit nerds have credit monitoring that allows for daily credit pulls.

[TorontoGuy]

I am an ACA(American Citizen Abroad) and when I applied for my SSC (Social Securiy Card) I gave them my Canadian address. How can I get a credit report?

Turns out the only information the SSA has for someone that isn't getting SSA benefits, is a Name and Number - that's it! So the only way that any of the reporting agencies have an address is through a financial institution that reported it.
In conclusion, in my case that I am a ACA I have to give the address that I gave my bank/credit card issuer when I opened my account.

[Mendelssohn]

The credit report will give the most recent information available to the bureau every time it's pulled. The real question is how long it takes the credit card company to report it.

There is some lag time in processing updates. There is no way TU gets information 5-6 days after EX on a regular basis. Their system is antiquated in many respects. It certainly was the easier bureau to B*.

[yitrap]

EX, EQ and TU take different lengths of time to update. EX is normally 1-2 days with TU taking up to a week.

The only way to know for sure is to look at your reports. That's one reason why most credit nerds have credit monitoring that allows for daily credit pulls.

Thanks, can you suggest one to me? It's about time I get really on top of it

[Mendelssohn]

Thanks, can you suggest one to me? It's about time I get really on top of it

I use Amex Credit Secure. USAA has one as well that looks exactly like CS.  Many people are able to get a discount with USAA after calling to cancel.  I used to have service with them but closed my accounts with USAA and switched to CS for simplicity.

[yitrap]

switched to CS for simplicity.

What makes it more simple?

[Mendelssohn]

What makes it more simple?

I didn't want to deal with an additional login just for that.

The services are almost identical.

[yitrap]

I didn't want to deal with an additional login just for that.

The services are almost identical.

Got it. Thanks!

[Cappy]

There is some lag time in processing updates. There is no way TU gets information 5-6 days after EX on a regular basis. Their system is antiquated in many respects. It certainly was the easier bureau to B*.

B* 

[Luvtotravel]

i allowed someone to use my name to lease their car and they tracked my name through the mud with three late payments. when can i expect these delinquencies to stop hurting my score?

[Cappy]

i allowed someone to use my name to lease their car and they tracked my name through the mud with three late payments. when can i expect these delinquencies to stop hurting my score?

Not trying to rub it in, but NEVER let anyone use your name unless it's family and you get the money either upfront for 6 months at a time or upfront a few months. Also, you should be making those payments from your account.

Just to let it go and hope for a friend/whoever to remember is a no no.

How old are the lates?

[PillanSmye]

You're in Brooklyn, can you give me some MS tips?

[Cappy]

You're in Brooklyn, can you give me some MS tips?

You remind me of someone