How far back does closed account information go

Experian_company_representative wrote: »

When an account is closed it is frozen and retained for six years. So the status history will be the six years before the settlement date and this will not change again until the account is dropped.

James Jones

So that effectively means account history could be on your credit report for up to twelve years.

In that case if you have any adverse history, it is probably a good idea to wait until that disappears before you close the account. I wish I'd known this before I closed an account recently

Thanks!

The_Boss wrote: »

Yep - I learnt this the hard way too when I closed an account 5 years ago. To be fair though the only alternative was to keep it open until the late payment dropped off and that was a similar period of time.

Bit concerned that Experian should apparently be showing the past 6 years whereas the most I have showing is 60 months (5 years).

I had an arrangement to pay on a Halifax current account in 2009, but only closed it about a month ago. So the AP markers will now show on my report until 2019, when they would have dropped off in 2015

I wouldn't think 6+ year old information has that much of an effect on lender's decisions though.

Hopefully James can let you know why you only have five years showing!

Thrugelmir wrote: »

Lenders use algorithms to process the datasets that the CRA's provide. So can digest and compute through vast amounts of data to arrive at a credit score. Depending on the product, amount of applications being received, whether the lender is actively looking to lend etc. The algorithms can be quickly adjusted to raise or lower the height of the bar to determine what a pass score is.

Right. So lets say a fresh arrangement to pay gives -50 to your score. I would imagine that as time goes on it has less of an effect, so once it's like 6 years old it might only give -20 to your score.

Just an example.

Thrugelmir wrote: »

In principle yes. Lenders will also have further criteria linked to the subsequent credit history. As it builds a picture of the type of person you are, in terms of your handling and attitude to money.

As a primary example. The number of people who clear their debt. Then assume obtaining a new credit card and by clearing it every month is somehow going to improve their rating. The fact that they feel the need to have a card. Suggests that very easily they could slip back down the slope and end up with debt issues to contend with again.

I've just got a credit card and it's 3 years since I finished paying off my debt, 4 years since I got two defaults for said debt.

I've borrowed money since then via overdrafts but it's never taken me long to pay it back.

My impression was that a credit card would assist. If you get a rejection you can always just appeal in writing anyway and hopefully someone will exercise some common sense I use my card for three reasons: -

1. To gain interest on the money I don't spend in my current account;
2. Section 75 protection;
3. To improve my creditworthiness.

Paying in full is surely an indication that someone is unlikely to get into debt trouble with a card, as they could have just used their own funds anyway.