Mortgage Still Reporting as Open Account

[RedLight]

I just pulled my Equifax credit report and my 1st mortgage is still showing as and open account. We did not reaffirm and I am not sure if I should dispute this, would it create a negative account if reported IIB versus what it shows now?

Name:
BANK OF AMERICA, N.A
Credit Limit:
$0
Date Reported:
07/2011
Date Opened:
05/2007
Balance:
$108,032
Past Due:
$0
Acct Status:
PAYS AS AGREED

Also, we have a CC that was IIB but is reporting 61-90 days late but the date reported is from 09/2008. Would it do more damage to dispute this and get it switched to IIB or should I just leave it?

[RedLight]

Also, we have a CC that was IIB but is reporting 61-90 days late but the date reported is from 09/2008. Would it do more damage to dispute this and get it switched to IIB or should I just leave it?

[IBroke]

On the mortgage, I'd say it doesn't hurt to leave it "as is". If you need to have the status changed to "IIB" at a later time for whatever reason, you always can. As for now, it surely isn't bad to have your payments reported as "pays as agreed".

Might be a different thing on the CC though because it already is a negative tradeline. Does it also show a balance? If it does, you def. want to have that balance removed and updated to $0 and reported as "IIB" because it influences your credit-utilization which is very important for a good credit-score.

[justbroke]

The only problem I see with it, is that the credit limit is $0, but there's a huge balance -- it's "over the credit limit". I think that hurts a credit score, but I can't quantify by how much. There should be no balance on a discharged loan. Additionally, I don't know if an IIB entry is worse than a "over the credit limit" account. (Noting that IIB is a "negative" reporting status.)

[TBA]

If you are talking about the mortgage being "over the credit limit" - i dont think that is actually an issue. Credit limits are usually only scrutinized on revolving debt - not secured debt. I would leave the mortgage if it is all positive good history.

As for the CC - I dont know all the dates of your filing - but if you have been rebuilding new good credit since it last reported in 2008, i would leave the old alone and let it die peacefully in 2015. If you have not been building new good credit, And you are about to start, it may be worth it to have it reflected properly. When were you discharged?

The CC trade line will fall off 7 years after your discharge date (usually) if you include it in bk on your report. The bk will remain for 7 or ten years, depending on type.

[justbroke]

If the account isn't in a negative status, it will never fall off the credit report. I have mortgages (paid - satisfied) that have been last reported since 2003. I have at least one AMEX account that is 23 years old also reporting closed, paid / satisfied. Positive accounts stay forever.

I agree that the "credit limit" issue may not apply at all in this case. However, I know that my Experian monitoring actually reports my HELOCs as credit available. Since this is a first mortgage (and probably not a HELOC), I agree with the your post that it probably isn't affecting the credit score.

Always try to keep the positive trade lines forever! They help with both your length of history (which is a factor) and your payment history (the most important factor).

[IBroke]

If the account isn't in a negative status, it will never fall off the credit report. I have mortgages (paid - satisfied) that have been last reported since 2003. I have at least one AMEX account that is 23 years old also reporting closed, paid / satisfied. Positive accounts stay forever..

That's what I'm hoping for on one of my old auto-loans. The file from the bureau, however, contains a specific "stays on your report until"-date. Let's see what's going to happen then.

[IBroke]

The CC trade line will fall off 7 years after your discharge date (usually) if you include it in bk on your report.

Fortunately, I'm going to get rid of my IIB-tradelines a few years earlier. That's the "advantage" of being late for a couple of years before filing..

Basically, there is no "right way" to deal with TLs before filing. If you keep them current 'til you file, you don't have late payments but you will be stuck with these TLs for the entire 7 years after filing. If you are already late before filing, you get punshed for the lates but the TLs fall off earlier.

[IBroke]

As for the CC - I dont know all the dates of your filing - but if you have been rebuilding new good credit since it last reported in 2008, i would leave the old alone and let it die peacefully in 2015. If you have not been building new good credit, And you are about to start, it may be worth it to have it reflected properly.

It would be crucial to know if this CC-account still shows a balance. If so, the negative impact of the late payment might not be the main concern - but a potential balance would certainly impact the credit utilization. If that account would report a significant open balance, it is virtually impossible to achieve a high credit-score - especially when you think of the low credit-lines typically associated with re-building CCs after a BK.

[TBA]

Good points IBroke. I was assuming it was a zero bal as he/she didnt mention a balance. I guess we need more info in this case

As for helocs - they are revolving debt - as you can draw against them and pay them down and draw back out against them again. Good catch there too! The heloc situation was actually debated for some time at the scoring level, but it was finally considered revolving and as such, makes a huge impact on your ratios.

[RedLight]

The balance on the CC is showing $0 with past due of $0 and credit limit of $16,000. Date opened 10/2006. So, I think you guys may agree that it may be in my best interest to keep that card where it is at. Is that the consensus?

[IBroke]

The balance on the CC is showing $0 with past due of $0 and credit limit of $16,000. Date opened 10/2006. So, I think you guys may agree that it may be in my best interest to keep that card where it is at. Is that the consensus?

In that case, you can leave it as is.