Let Old Debts Lie

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Do you know the saying: Let sleeping dogs lie? The same holds true for older accounts on your credit report that show positive information--let them lie, and don't try to get them removed.

While some people believe that they should try to erase all history of an open account the second that its paid off, there are two problems with this:

  • Having any number of good accounts, open or closed, shows that you have experience as a borrower
  • You can't actually erase things from your account unless you go through an extensive process and have solid reasons for wanting it gone

 

In an article by Experian, one credit expert had this to say:

"Retaining the positive history longer helps you rebuild your credit history if you have had financial challenges. And, the length of your history is considered in scoring models. The longer you have demonstrated that you can manage credit, the more positive points for your scores. You don’t really want those accounts to go away."

 

For example, if you took out a loan for $1,000 six or seven years ago--and paid it off in a timely manner--that account will stay on your credit report for up to 10 years total. And though it's just sitting there doing nothing, it's actually making a strong case for your credit score!

That's all well and good; but what if you're still rebuilding from one bad account a few years ago, and you need a car loan now?

AutoCenters Herculaneum is here to help! Our guaranteed pre-approval program gets you the financing you need, in as little as 60 seconds, even with bad or no credit.




 

Categories: Credit Tips