Credit reports contain hundreds of bits of information that factor into your credit scores. The obvious are balances on credit cards, payment history, mixture of credit, hard inquiries, and how old your credit accounts are.
But there’s a key element that you may not be aware of, it’s the dates reported.
Here’s an example, a collection account is reported to your credit report and that date is listed as “date open”. There’s also another date recorded and that’s the “date last reported” or what I like to call “re-aged”. This will be the last time that this collection company has sent account information to the credit bureuas. This “activity” is noted and your credit scores are kept low as a result. The credit scoring models note this as a recently reported derogatory.
There are also instances where a collection is “dormant” where as it’s not been re-aged in some time. Should you pay a dormant collection, it will lower your credit scores. If the account has recently been re-aged it will now lower your scores.
Most online credit reports show a 24 month payment history below the account. If you see within that 24 month payment history a “KD”, then that will let you know the last time the account was re-aged. This is a “key derogatory”.
For more information on which collections to pay, and which to leave alone along with other deletion strategies call me direct at 949-505-9971 or email me at firstname.lastname@example.org .
President and Certified Credit Expert